Cyprus Entrepreneurship Ecosystem 2024

Introduction

The Cypriot economy continues to demonstrate resilience and a strong commitment to entrepreneurship, with promising growth observed in recent years despite the various socioeconomic challenges in the greater European region. This positive trajectory is evidenced by Cyprus achieving the largest jump in the Startup Blink Global Startup Ecosystem Index 2024, securing an impressive spot in the Global Top 50 at position 45.

This remarkable progress highlights the effectiveness of recent policy reforms, investments in innovation, and the growing support for startups and small businesses on the island. The entrepreneurial ecosystem in Cyprus has benefited from a combination of factors, including improved access to funding, an increase in incubators and accelerators, and a supportive regulatory environment. These developments have not only fostered a culture of innovation but also attracted international talent and investors to the island.

Furthermore, the growth in the entrepreneurial sector has had positive ripple effects across the economy, contributing to job creation, increased competitiveness, and a more diversified economic base, and while we acknowledge the significant steps in the right direction there is definitely still room for improvement. As Cyprus continues to build on these achievements, it is well-positioned to become a leading hub for startups and innovation in the region, further enhancing its economic resilience and growth prospects.

Incubators & Accelerators

Incubators and accelerators are crucial components of the Cyprus entrepreneurship ecosystem, supporting early-stage ventures and aspiring entrepreneurs. These programs offer startups resources, mentorship, and advice, helping them tackle initial challenges and build a solid foundation for growth.

Incubators typically support new businesses from the idea stage, offering workspace, networking opportunities, and guidance. In contrast, accelerators concentrate on rapidly scaling startups. Accelerators usually follow a time-limited, cohort-based structure and deliver customized training for quick, efficient growth.

By joining incubators and accelerators, early-stage startups can gain expert guidance, industry connections, and a collaborative environment with like-minded entrepreneurs. These programs help startups refine business models, devise go-to-market strategies, while fostering innovation and ensuring long-term success.

In Cyprus, the incubator and accelerator scene is steadily growing, with more programs emerging to meet the diverse needs of the startup ecosystem and current programs enhancing their offerings.

We have included 8 such incubators and accelerators that we believe offer invaluable support to our local entrepreneurship ecosystem.

1. IDEA Innovation Center: This accelerator focuses on early-stage startups, offering a 9-month program that includes seed funding, coworking space, mentorship, and access to a broad network of industry contacts and investors.
2. Gravity Ventures Incubator: Focused on tech start-ups, they are a cutting-edge, venture building incubator that fosters and propels innovation. Through constant interaction they empower founders to make real impact and shape the entrepreneurial community of tomorrow. They focus on building startups from early-stage to mature ventures, by assisting them in all the necessary steps and being with them throughout their journey.
3. Chrysalis LEAP: Focuses on sustainability and cleantech innovations, Chrysalis LEAP provides specialized support, including tailored mentorship and access to industry-specific investors and partners.
4. UNITY Growth Partners: A multi-week program tailored for early-stage, scale-up, and corporate startups aiming for fundraising, growth, and expansion.
5. Techub: Part of CYENS Centre of Excellence, they aim to transform and enhance entrepreneurship culture and ecosystem by providing a space of unlimited networking opportunities to both individuals and companies in the heart of Nicosia.
6. Cyprus Seeds: A non-profit organization with the mission to support the commercialization of scientific research projects with strong intellectual property (IP) value and global market potential, across Cypriot universities research institutions, and centers of excellence.
7. ARIS: A non-profit organization established in association with Deloitte, with the sole purpose of offering start-ups and scale-ups with the structure, mentorship and network needed to grow successful business ventures.
8. EUC Startup Program powered by Microsoft: The program aims to help 10 Cypriot start-ups each year to build strong networks with key players of the start-up and entrepreneurial ecosystem of Cyprus, while also developing their start-up idea further through training and mentoring, completely free of charge.

These incubators and accelerators play a crucial role in nurturing the next generation of entrepreneurs in Cyprus. By providing essential resources, mentorship, and networking opportunities, they help startups overcome early-stage challenges and pave the way for sustainable growth and success in the global market. As the entrepreneurial ecosystem in Cyprus continues to evolve, these programs will undoubtedly remain pivotal in driving innovation and economic development on the island.

Research & Centres of Excellence

Centres of Excellence (CoEs) and Research Institutions are vital pillars of a thriving startup and entrepreneurship ecosystem. They drive innovation and knowledge creation through cutting-edge research and the development of new technologies, providing a continuous flow of ideas essential for a dynamic startup environment. These institutions also cultivate highly skilled talent, offering advanced training and fostering critical thinking, which startups can leverage to build strong, knowledgeable teams.

Additionally, CoEs and Research Institutions offer access to state-of-the-art laboratories, equipment, and other resources, facilitating the development and validation of new products. They serve as hubs for collaboration between academia, industry, and government, enabling startups to solve complex problems and explore new market opportunities.

These institutions often provide funding through grants and competitions and offer mentorship from experienced researchers, guiding startups through the challenges of commercialization and growth. Networking opportunities through conferences, seminars, and workshops further enhance startups' visibility and connections.

The association with prestigious institutions also boosts startups' credibility, aiding in investor relations and market entry. Advocacy for supportive innovation policies and a focus on long-term sustainability ensure that startups can continually innovate and adapt, maintaining their competitive edge.

In summary, CoEs and Research Institutions create an ecosystem conducive to startup success by providing essential resources, support, and opportunities for growth and innovation.

Below you can find links to some of the most active ones in Cyprus:

• CYENS
• KIOS
• EOCOE
• Cyprus Marine & Maritime Institute
• ECECT
• CyRIC
• CERIDES
• Nireas International Water Research Center
• Eratosthenes Centre of Excellence
• Centre for Entrepreneurship
• PHAETHON Research and Innovation Center of Excellence for Intelligence, Efficient and Sustainable Energy Solutions
• Cyprus Center of Excellence in Biobanking and Biomedical Research

Funding

A thriving Cyprus Entrepreneurship Ecosystem needs diverse funding options to support startups and businesses at different development stages. Funding sources like venture capital funds, angel investors, crowdfunding platforms, and grants fuel innovation and help startups scale up.

A recent addition, the Cyprus Equity Fund (CEF), managed by 33East, offers risk financing for mainly pre-seed and seed-stage companies. With a target size of €37.5 million, the CEF demonstrates a commitment to diversifying funding options in Cyprus. To learn more about the CEF, visit this article by Cyprus Mail.

“It is worth mentioning that the Fund is expected to crowd in private investments both at the CEF, as well as by co-investing in prospective companies with other private investors and funds.” George Panteli, Permanent Secretary of the Ministry of Finance.

CYBAN is Cyprus' first Angel Investment Network, connecting carefully selected startups with angel investors to provide vital early-stage funding and strategic guidance.

We could not go without mentioning ourselves in this section of the article. At Crowdbase, we have proven that crowdfunding is a viable funding option for those who wish to scale, providing a platform where entrepreneurs can raise capital directly from the public, harnessing community support to grow their startup even further. Through Crowdbase, startups gain access to a diverse pool of investors who believe in their vision, further democratizing the funding process and enabling broader participation in entrepreneurial ventures.

Despite the significant progress and increase in options, there’s still considerable room for growth in this area as the ecosystem matures. To promote innovation and economic growth, expanding and diversifying funding sources will be vital for the Cypriot entrepreneurial ecosystem’s success.

Co-Working Spaces

Co-working spaces are vital in the Cyprus Entrepreneurship Ecosystem, providing affordable, flexible work environments for startups, freelancers, and established businesses. These shared spaces foster community, networking, collaboration, and idea exchange, allowing ecosystem players to grow together and create synergies.

Entrepreneurs benefit from co-working spaces by accessing professional workspaces without the high costs and long-term commitments of traditional office leases. Co-working spaces’ flexibility allows startups to scale easily, offering networking opportunities with other entrepreneurs, mentors, and potential investors.

Moreover, co-working spaces often host events, workshops, and meetups customized for their community, encouraging knowledge-sharing and skill development. These spaces contribute to a vibrant, dynamic entrepreneurship ecosystem by cultivating innovation and promoting economic growth. In recent years, Cyprus has seen rapid growth in co-working spaces, with an increasing number of openings across the country.

Listed below you can find the available co-working spaces by city.

Nicosia

• HUB Nicosia
• Nomads Coworking
• CyprusInno The Base
• Yfantourgeio The Workplace
• Axess
• Regus
• Business & Wellness

Limassol

• The Business Bar
• SOHO

Larnaca

• Native
• iDesk.Space
• YouthMakerSpace

Paphos

• Hugge Coworking
• Ohouse

Institutions & NGOs

Institutions and NGOs contribute to a strong entrepreneurial ecosystem by connecting and supporting various stakeholders. They bridge gaps between entrepreneurs, investors, government bodies, and other ecosystem players, ensuring a cohesive environment for innovation and growth.

By organizing networking events, advocating for pro-entrepreneurship policies, and providing resources like market research and industry-specific data, institutions and NGOs help entrepreneurs make informed decisions and navigate business challenges.

In Cyprus, institutions and NGOs play an active role in advancing the ecosystem. Their efforts in organizing events, advocating for favorable policies, and providing valuable resources, contribute significantly to the country’s entrepreneurial landscape. For instance, a notable organization is Techisland, with a mission to accelerate the growth of technology and the innovation ecosystem in Cyprus. Another is JCI Cyprus, which contributes by organizing networking events and providing skill development opportunities for young professionals and entrepreneurs.

Others include Startup Cyprus, JA Cyprus, Cypriot Enterprise Link and Cyprus Computer Society.

Media Outlets & Events

Media outlets and events are vital for a thriving Cyprus entrepreneurship ecosystem. They increase visibility for startups and entrepreneurs, and help create connections and collaborations among stakeholders.

By featuring stories about innovative ventures, breakthrough technologies, and entrepreneurial success, media outlets raise awareness about the local startup scene. This attracts interest from investors, customers, and partners, enabling businesses to grow their networks, access new markets, and attract resources.

In addition, media outlets often collaborate with other ecosystem players to organize industry events, conferences, and workshops. These provide a platform for entrepreneurs to showcase their ideas, learn from experts, and connect with like-minded individuals. Such events are invaluable for networking, knowledge sharing, and collaboration, helping entrepreneurs stay updated on industry trends and best practices.

A distinguished figure within this space is startup journalist Panis Pieri, with his active role in promoting innovative ventures, organizing networking events, helping startups grow and inspiring new entrepreneurs in the process.

Subsequently, Cyprus has seen increased media coverage and events related to entrepreneurship. This growth has led to a diverse range of events catering to different ecosystem players such as EcoX Cyprus which organizes various networking events in the fintech and tech space.

The most notable and successful event is Reflect Festival, the largest tech and entrepreneurship gathering on the island and in the region. Attracting over 10,000 attendees annually from more than 70 countries in Limassol each year, Reflect Festival has significantly contributed to the positive development of the local entrepreneurship ecosystem.

Corporates & Consultancies

Corporates and consultancies offer valuable resources and expertise to startups and ecosystem players, addressing various challenges they face. For instance, consultancies like Capacitor Partners assist businesses in staying competitive and innovative through digital transformation.

By providing marketing support, they help startups promote their products and services effectively, target the right audience, and generate leads. Some corporates invest in startups, offering capital and mentorship to help them scale up. Consultancies can also guide entrepreneurs in preparing pitch decks, valuations, and navigating complex financial and corporate matters.

As a result, in Cyprus, the corporates and consultancies scene is evolving quickly, with firms like ASBIS investing in smaller companies and offering tailored support to startups. Many recognize local entrepreneurs’ potential and organize training programs to help startups develop essential skills and grow their businesses. This involvement shows the commitment of corporates and consultancies to contribute to a thriving entrepreneurial ecosystem in Cyprus.

Conclusion

In conclusion, Cyprus has shown remarkable resilience and commitment to nurturing entrepreneurship amid challenging economic conditions in Europe. Its significant rise in the Startup Blink Global Startup Ecosystem Index 2024, achieving a strong position in the Global Top 50, highlights its progress as a flourishing hub for innovation.

Supported by effective policy reforms, increased investments in innovation, and a conducive regulatory environment, Cyprus has cultivated a thriving entrepreneurial ecosystem albeit with room for improvement. Initiatives such as incubators, accelerators, research institutions, and diverse funding options have been instrumental in fostering startup growth, job creation, and economic diversification.

Looking forward, continued efforts to expand funding opportunities, enhance co-working spaces, and strengthen institutional support will be vital. Collaborations among corporates, consultancies, NGOs, and media outlets will further amplify Cyprus' entrepreneurial impact, fostering a dynamic environment for startups and investors.

With these foundations in place, Cyprus is poised to navigate future challenges and capitalize on emerging opportunities, driving sustainable economic growth and prosperity across the region.