The Startup Ecosystem of Cyprus

The Deputy Ministry has implemented attractive tax incentives, increased funding opportunities, and introduced a startup visa program to stimulate startup activity in Cyprus. These initiatives are commendable and are expected to have a significant positive impact on the future of the Cypriot startup ecosystem. Additionally, the Cyprus Startup Visa program allows talented entrepreneurs from non-EU and non-EEA countries to establish high-growth potential startups on the island.

Cyprus boasts a strong talent pool, with one of the highest numbers of graduates per capita in the EU. The influx of Russian and Ukrainian IT professionals seeking stability has further enriched the local talent pool. Furthermore, many international companies have set up operational functions in Cyprus, presenting job opportunities that pose a challenge for startups as talented individuals often prioritize secure full-time employment over entrepreneurial endeavors.

Several initiatives have been launched to support entrepreneurs and attract foreign investors, including Invest Cyprus, ARIS funded by Bank of Cyprus and Deloitte, CYENS research and innovation center, Cyprus Seeds and Tech Island. These organizations aim to foster innovation and technology transfer in Cyprus and nurture tech talent on the island.

Cyprus is emerging as a growing fintech hub, with startups offering a range of services such as real-time investment portfolio securitization and automated order processing. Additionally, Cyprus is home to leading companies in regtech, IoT, cybersecurity, and gaming industries. The country has also seen growth in Blockchain technology, with the University of Nicosia pioneering a Masters course in Digital Currency.

To tap into Cyprus’ untapped startup potential, more startup accelerators, incubators, and research institutions are actively developing innovative projects. Conferences like the Cyprus Diaspora Forum and Reflect Festival are promoting the island’s capabilities on a global scale. The government should consider implementing policies and incentives to support the establishment of venture capital funds, which will further cultivate entrepreneurship and bolster the startup culture in Cyprus, ultimately elevating the country’s profile in the global startup ecosystem.