05.04.2022
The aim of the government is the Cyprus Equity Fund to give the necessary impetus to the emerging and promising innovation ecosystem of Cyprus, which in recent years has already shown a high growth rate of investment in research and innovation and active international scientific cooperation, said Finance Minister Konstantinos Petridis at the Cyprus Equity Fund webinar.
“We have set a high bar for the participation of private investors in the Fund, since attracting private resources is one of the main objectives of the Fund and a key element of its long-term success,” Mr. Petridis emphasized in his greeting. which was read by the Director General of the Ministry of Finance Yorgos Pantelis.
He said the Treasury has long been committed to introducing a financial instrument to support start-ups and innovative equity-funded companies.
“Therefore, the agreement with the European Investment Fund to manage this new financial instrument is of paramount importance and is an important milestone in the government’s efforts to strengthen alternative financing,” he stressed.
Mr. Petridis emphasized that the interest of the European Investment Fund in managing the Cyprus Fund is in itself an important vote of confidence in the Cyprus innovation ecosystem.
He also said the government’s commitment and confidence in the project is evident from the increase in initially approved support by 10 million euros to a total of 30 million euros, noting that this amount will be boosted with private funds. He noted that the Cyprus Equity Fund is included in the National Resilience and Recovery Plan.
At this stage, the Minister of Finance expressed the government’s support for the development of the investment fund sector in Cyprus, as it was recognized, as he noted, as a sector in which Cyprus has a competitive advantage due to its specialized human resources. The competitiveness of the economy and the cost of setting up a business, as well as access to European and regional markets within a strong European Union framework for financial services.
He also said that the Fund, which will be created after the competition by the European Investment Fund, will use the experience of market participants to adequately address the problem of equity financing shortage by supporting innovative entrepreneurship with the necessary investments.
He added that the Fund will benefit new and growing Cypriot start-ups and an innovative ecosystem traditionally fueled by government grants, among other things. This will further develop the nascent venture capital market by providing an opportunity for local and international venture capitals to operate and invest in Cyprus.
In addition, Mr. Petridis said that the Cyprus Equity Fund also provides an important opportunity for the domestic investment fund industry to participate in financing aimed primarily at Cypriot businesses. It states that the European Investment Fund will provide the selected Fund Manager with its valuable experience and best practices in the venture capital market for the management and development of the Fund.
“The challenges of the knowledge economy are critical to development. Strong entrepreneurship and the development of small and medium-sized enterprises are among the most important conditions for successfully meeting the challenges of an ever-evolving global economy,” he concluded.
