When Demetrios Zoppos and Yiannis Eftychiou launched 33East VC, they had one goal in mind: to help turn Cyprus into a thriving hub for innovation and entrepreneurship. Backed by €26 million in its first close—including support from the European Investment Fund, the Cyprus government, and the Bank of Cyprus—33East is the first venture capital fund of its kind on the island. With investments ranging from €100K to €1 million, the fund targets pre-seed and seed-stage startups with a Cyprus connection, offering not only capital but also strategic guidance and global networks.

In this interview, Co-founder and Partner Demetrios Zoppos explains how 33East came to be, what they look for in founders, and why Cyprus’s small market could actually be an asset. With a mix of entrepreneurial grit and investor insight, Zoppos lays out a vision for building an ecosystem where bold ideas are backed early and built to scale globally.

Yiannis and I met in London through a mutual friend, shortly after the initial call from the European Investment Fund to set up the Cyprus Equity Fund. Our backgrounds were quite complementary—my experience was rooted in entrepreneurship, while Yiannis brought expertise as a professional investor. It turned out to be a strong combination for launching an early-stage venture fund.

33East operates very much like a startup itself, so we both take on a wide range of responsibilities. We’re equally involved in speaking with founders and teams, and together we make up the fund’s Investment Committee. Our individual experiences allow us to bring different perspectives to the table, which strengthens our decision-making process.

Our primary focus is on backing ambitious founders who are targeting large markets. We look for a blend of intelligence and determination, but we also pay close attention to the business idea itself—its positioning, what makes it stand out, and why the team behind it is uniquely suited to succeed.

These are fairly standard criteria in the VC world, and the evaluation process is gradual. It takes time to get to know the team, understand how they think and operate, and ultimately build conviction in their potential.

At 33East, we follow two distinct investment strategies. The first is a classic venture approach, where we invest €0.5–1 million in pre-seed or seed-stage startups. The second is an “acceleration” strategy, focused on earlier-stage teams with more technological risk. For those, we typically invest smaller tickets, in the range of €100–300K.

There are already some VC funds operating out of Cyprus, and we’ve seen local teams successfully attract later-stage funding from European VCs. Strong teams and compelling ideas will generally find a way to secure financing.

What’s important is to view financing as part of a larger flywheel. To attract more venture funds, we also need a growing number of high-quality startup teams. That, in turn, creates a virtuous cycle of talent and investment.

At 33East, we plan to invest in a select group of startups—around 15 to 20 through the venture strategy and another 8 to 10 through the acceleration strategy. These are relatively small numbers compared to the total number of teams seeking support, which means we’ll have to say “no” far more often than we can say “yes.” But that’s a common pattern, even in more mature startup ecosystems.

Cyprus has already made a mark in areas like digital games—both mobile and PC/console. We’re also seeing promising fintechs and healthtech companies based here, supported by an emerging financing ecosystem.

One thing to keep in mind is the island’s small domestic market. It’s difficult to scale consumer-focused products locally. That’s why we encourage teams to focus on B2B propositions and to seek early validation from markets outside Cyprus. This often requires a mindset shift for founders, but those who successfully make that transition could serve as valuable examples for others to follow.

Yes, we do. The typical progression for VC firms is to start with an initial fund and, over time, launch second and third funds—sometimes with a focus on later-stage investments or simply continuing the same strategy with a larger capital base. While we don’t have concrete plans just yet, we certainly hope to follow that trajectory.

The most important factor influencing venture capital presence in Cyprus is the quality of the startups coming out of the ecosystem. That’s the number one driver.

That said, reducing obstacles for founders is also crucial. We should aim to simplify the process of starting, operating, and even closing a company. This includes cutting through unnecessary bureaucracy, lowering regulatory barriers—especially by introducing things like a fintech sandbox similar to what exists in the UK—and making it easier to hire talent.

The government has taken some positive steps, like introducing digital signatures, and we need to continue pushing toward digitization. The more digital and user-friendly the infrastructure becomes, the better it will be for startups.

What: 33East VC

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Who: Demetrios Zoppos is a serial entrepreneur and investor. He’s a founding Partner at 33East, the Venture Capital Firm for Cyprus. Demetrios has co-founded several startups, including GF-X, onefinestay, and Klevio. He is an angel investor in over 25 startups and a limited partner in several venture funds. He holds an MPA from Harvard Kennedy School and a First Class MA in Economics from Cambridge.