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33East: Pioneering Cyprus’ Startup Revolution With €26M Venture Fund

by THEFUTURE.TEAM

January 23, 2025

33East, a Cyprus-based venture capital firm, has officially launched its first fund, securing an initial close of €26 million. Focused on pre-seed and seed-stage startups with ties to Cyprus, the fund aims to catalyze the island’s evolution into a hub for innovation and entrepreneurial growth.

This milestone is particularly significant as 33East is the first VC fund in Cyprus to secure support from the European Investment Fund (EIF). The EIF’s backing, facilitated through the Government of Cyprus and the National Recovery and Resilience Fund (RRF), is complemented by contributions from the Bank of Cyprus and leading local investors, marking a transformative moment for the nation’s startup landscape.

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The fund’s initial €26 million pool consists of €19 million from the Cyprus Equity Fund (CEF)—a program aligned with the National Recovery and Resilience Plan—and €7 million from private investors, including a notable €2 million from the Bank of Cyprus.

33East plans to invest in early-stage startups, with initial funding between €500,000 and €1 million per company. Additionally, the fund has set aside €2.5 million for an acceleration program to nurture entrepreneurs in the earliest phases of their ventures.

The firm is founded by seasoned experts Demetrios Zoppos and Yiannis Eftychiou and benefits from its leaders’ wealth of experience. Zoppos, a veteran entrepreneur and angel investor, brings over 25 years of expertise in early-stage technology ventures. Eftychiou, with his background in venture capital, has worked with high-growth companies across Europe, Africa, and Asia.

Their shared vision for Cyprus as a burgeoning tech and innovation hub drives the fund’s mission. “Cyprus is brimming with potential for entrepreneurs,” said Zoppos in an interview with CNA. “Our goal at 33East is to provide not just capital but also the guidance and networks founders need to create scalable businesses.”

Eftychiou echoed this sentiment: “We’re not just funding startups; we’re building partnerships. We’re here for founders with bold ambitions to scale internationally, offering them optimism, support, and unwavering commitment to their success.”Startups interested in collaborating with 33East or learning more are encouraged to connect with the team via their website: www.33east.vc.

The Future Forbes Realty Global Properties

Cyprus Tech Sector Propels Economic Growth and Reshapes Talent Landscape

by THEFUTURE.TEAM

May 17, 2025

Robust Economic Expansion

At the recent TechIsland Summit, Christophoros Anayiotos, Head of Deal Advisory at KPMG Cyprus, delivered a compelling assessment of the island’s burgeoning tech ecosystem. The 2024 report highlights that the technology sector now contributes 16% of Cyprus’ total Gross Value Added (GVA), up from 12.6% in the previous year. Overall, the sector’s economic impact is estimated at €8.5 billion, with direct contributions of €4.7 billion and an additional €3.8 billion generated indirectly.

Sectoral Contributions and Productivity

Using the Leontief Input-Output Model, the study covers key areas including ICT, professional scientific and technical activities, as well as tech-driven financial and insurance services. Notably, the ICT segment itself delivers €3.4 billion in direct GVA, while professional services and financial operations contribute €840 million and €505 million respectively. This horizontal spread of technological influence underscores the industry’s pivotal role in driving multifaceted business growth.

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Resilience During Economic Downturns

Even amid challenging economic conditions, the tech sector has demonstrated remarkable resilience. In the pandemic-stricken year of 2020, while the broader Cypriot economy contracted by 3%, the ICT sector experienced a robust growth rate of 21%. This momentum accelerated further to a striking 38% growth in 2021, reinforcing technology’s role as a stabilizing economic force.

Divergent Trends in Employment

Anayiotos’ analysis reveals that the tech sector now sustains over 62,000 full-time equivalent jobs in Cyprus, with 45,900 direct and 16,300 indirect roles. For every €1 million in increased sector revenue, approximately 13 jobs are generated. Despite the overall employment surge, there has been a significant shift in workforce composition. In 2015, Cypriot nationals comprised 88% of ICT employees; by 2024, this figure dropped to 50%, with non-EU nationals accounting for 42% and other EU citizens 8% of the workforce.

Cyprus as an EU Leader in ICT

Cyprus now holds a prominent place in the EU, ranking second in the EU27 for ICT’s share of national GVA at 11.4%, a notable rise from 9.4% in 2023. Furthermore, the island leads the bloc in ICT GVA growth, posting a remarkable 347% increase between 2015 and 2024. With a top-five ranking in GVA per ICT employee—whereby each contributes approximately €130,000, compared to the EU average of €116,000—the country’s technology workforce has expanded at an annual growth rate of 12.1%, from 9,300 in 2015 to 26,000 in 2024.

Strategic Imperatives for Future Growth

Anayiotos emphasizes the need for strategic enhancements to sustain this expansion. Key recommendations include improving air connectivity, joining the Schengen Area to boost mobility, and attracting more international banking institutions. Additionally, introducing tax incentives designed to favor stock options is considered crucial in luring and retaining skilled talent. Addressing the limited capacity in private education is also vital to accommodating professionals relocating with families.

Investing in Talent and Digital Transformation

Looking forward, investments in education and digital upskilling remain paramount. There is a clear call for a national initiative aimed at promoting STEM careers, elevating the digital skills of both students and educators, and accelerating the digital transformation of public services. Moreover, streamlining legal procedures will be critical to improving the overall business climate and competitiveness.