Date: 7th February 2025

Cyprus' New VC Fund: 33East Fuels Startup Growth

A new venture capital fund, 33East, has launched in Cyprus with an initial close of €26 million to support early-stage startups connected to the country. Investors include the European Investment Fund, the Government of Cyprus, the National Recovery and Resilience Fund, and the Bank of Cyprus. The fund aims to position Cyprus as a key entrepreneurial hub.
 

Cyprus as a Growing Startup Hub

With over 800 tech companies, the cities of Nicosia and Limassol are emerging as startup ecosystems. The government's 'nomad visa' and other immigration policies, have attracted global talent, aligning with Cyprus’ Vision 2035 strategy to become a leading destination for business and innovation. Key sectors like fintech and ICT contribute 15% of GDP, ranking Cyprus fourth in ICT development within the EU. Opportunities in health-tech, biotech, and life sciences are also expanding due to an advanced healthcare system and rising demand for digital solutions.
 

Business Support & Tax Incentives

The FDI organisation, Invest Cyprus, and relevant Ministries provide extensive guidance for investors to ensure regulatory compliance and smooth business operations. Some advantages attractive to overseas investors are the strong corporate governance regulations, relatively low 12.5% corporate tax rate, the IP box regime for tax benefits on intellectual property, and no capital gains tax on securities. 
 

Funding & Networking Opportunities

Cyprus offers startup funding through the programmes and accelerator initiatives like Cyprus Seeds, Velocity Business Accelerator, and TechIsland, which provide mentorship and investment opportunities.
 

Quality Lifestyle & Strategic Location

Cyprus boasts modern infrastructure, high-standard healthcare, and a family-friendly environment. Though the local market is small, its strategic position at the crossroads of Europe, Asia, and Africa grants startups access to international markets. "By leveraging business-friendly policies and extensive support network, founders can build sustainable, globally competitive startups in Cyprus and their families can enjoy a high quality of life", says Parsegh Zartarian, senior consultant at Zartec, an advisory firm based in Nicosia, Cyprus