Cyprus has secured the 40th spot in the 2025 StartupBlink Global Startup Ecosystem Index, moving up five places from last year. The country is now the fastest-growing startup ecosystem in the European Union for the second consecutive year, with a reported growth rate of 28%.

The report highlights that Cyprus ranks second globally among countries with a population under two million and fourth in Southern Europe. It also notes a remarkable 71% increase in the number of startups compared to 2024.

Cyprus stands out as the only country with fewer than two million inhabitants to have four cities—Nicosia, Limassol, Larnaca, and Paphos—listed in the global startup index. All four cities recorded significant progress in their global rankings.

The country demonstrates particularly strong performance in key innovation sectors. Cyprus ranks second globally in Gaming, third in Fintech in Southern Europe, and ninth in the EU in Blockchain technologies.

According to the report, this rapid growth is attributed to Cyprus’s strategic geographic location and the government’s targeted policies and incentives—especially tax-related—that support innovation, entrepreneurship, and the attraction of talent and productive investment.

The recognition was officially celebrated during the Reflect Festival 2025, where StartupBlink CEO Eli David Rokah presented a commemorative plaque to Deputy Minister of Research, Innovation and Digital Policy Dr. Nikodemos Damianou on behalf of the President of the Republic.

Expressing satisfaction with the results, Dr. Damianou stated that the ranking reflects “the commitment and determination of the Cypriot government to continuously strengthen Cyprus as a hub of innovation, technology, and entrepreneurship—both regionally and globally.”

Congratulating the entire startup ecosystem on its achievements, the Deputy Minister added that the government’s goal is to “genuinely support tech companies and innovative startups in scaling, connecting with the local ecosystem, and integrating successfully into the global market—creating jobs and added value for the country’s economy and society.”

He also emphasized that through targeted funding tools, support structures, a business-friendly environment, and a structured digital transformation program, “we are turning Cyprus into an attractive destination for investment and entrepreneurship while building a more resilient and competitive economy rooted in knowledge and technological development.”