33East VC: Rooted in Cyprus. Build for the world

by THEFUTURE.TEAM
January 24, 2025
33EAST Demetris Zoppos

33East is a venture capital fund co-founded by Cypriot entrepreneurs Demetris Zoppos and Yiannis Eftychiou. Focused on pre-seed and seed-stage startups, the €26 million fund aims to unlock Cyprus’s potential as a hub for innovation and technology. Backed by the European Investment Fund (EIF) and the Government of Cyprus, 33East seeks to address the challenges local entrepreneurs face, including limited access to capital, networks, and scaling expertise.

The founders bring a unique mix of experience: Demetris is a seasoned startup entrepreneur with over 25 years of experience and Yiannis is a professional investor with a global perspective. Together, they envision transforming Cyprus into a producer of world-class startups.

33East plans to support founders not just with capital, but also with mentorship, connections, and a hands-on approach to business growth. The fund’s long-term goal is to establish a thriving ecosystem in Cyprus and expand its impact globally. In this in-depth interview with Future Media, Demetris Zoppos discusses the fund’s mission, challenges, and vision for the future.

Who are you and your co-founders, and what experience do you each bring to 33East?

I’m a London-based entrepreneur with 25+ years of experience in early-stage startups, including Onefinestay. I also have some experience as an angel investor and as an LP in several startup funds. Yiannis is a professional investor with a strong background in venture, having worked with high-growth companies across Europe, Africa, and Asia. I bring the founder experience in zero-to-one, and Yiannis brings the professional investor experience.

What does the name 33East mean to you?

Cyprus lies on the 33rd meridian east – the line of longitude running through Cyprus. We are building a fund with a focus on Cyprus and the fund’s name alludes to that.

How did you decide on a focus for Cyprus-based startups, and why do you believe the island has strong potential?

Both Yiannis and I are Cypriots. We want to give something back and help Cyprus develop into a producer of innovation and an exporter of technology. Cyprus is home to many ambitious entrepreneurs, and many have come to our shores only recently.

Some lack access to capital, networks, and the knowledge needed to scale their startups and compete internationally. The resources and opportunities are there—they just need connecting to unlock their full potential.

Our mission is to be the catalyst for this vision for Cyprus by backing founders and providing them with the capital, support, and connections to build scalable businesses.

Can founders based abroad, but with roots in Cyprus, still receive your support?

Yes. We have reserved 70% of the fund to back Cyprus-based teams, and 30% can be deployed anywhere in the world.

What is your investment thesis, and what makes you choose certain startups over others?

We look to back ambitious founders attacking large markets – we are founder-focused. We deliberately did not select a specific vertical or thematic category.

Cyprus has a small domestic economy, so it’s harder for consumer/B2C startups to scale out of Cyprus unless they are in a purely digital category like gaming. We see B2B as a more plausible opportunity space, especially in areas such as fintech and enterprise software and many categories of AI applications.

We are open-minded as to what mix eventually crystallises, but we suspect that ambitious teams will be looking to scale in international markets in Europe and the US from the start.


The fund size is $26 million. How many startups do you plan to invest in?

We plan to invest in 15 or so early-stage startups in a 4-5 year period so one every quarter, with initial funding between €500,000 and €1 million per company.
The same number of startups will be funded after the acceleration program but with much smaller checks – $200-300K.

You have backing from the EIF and the Government of Cyprus. How does that arrangement work in practice?

The European Investment Fund is the anchor LP in our fund. The Government of the Republic of Cyprus is the EIF’s mandator, so they are in effect the EIF’s client. Investment decisions are taken by the General Partner (Yiannis and I) and the EIF’s role is supervisory. We have a very positive relationship both with the EIF and with the Government of Cyprus.

Who are your other LPs, and how long did it take you to secure their commitment?

Our other LPs are a mix of private and institutional investors such as the Bank of Cyprus. All our LPs are Cypriot. It took us around 18 months to get from discussions to the first closing.

What challenges did you face while raising the €26m fund, and how did you overcome them?

We are first-time fund managers so it took persistence to persuade investors to join us in this journey. We had to paint a picture of Cyprus as a hive of future innovation and entrepreneurship, and describe the role our fund could play in supporting this vision.

You plan to invest at the pre-seed and seed stages. Why do you focus on these early rounds?

This end of the market is the most underserved in our view. There is a gap in the first steps of commercialisation, both from institutional investors and also from angel investors. Later-stage startups and scale-ups (typically Series-B and beyond) can seek funding from later-stage funds that are either based in Cyprus or cover Cyprus.

How do you plan to support startups beyond capital, and what do you offer them day to day?

We are also founders – we approach every partnership with optimism, friendliness, and a straightforward commitment to helping founders succeed. Startups are hard, but we believe a positive mindset and access to knowledge and connections build resilience and drive success.

We challenge ideas, not people, and aim for every interaction with us, whether we invest or not, to be uplifting and constructive. We like to engage and roll up our sleeves – we will take the lead from our founders on where they like us to be involved.

What have been your key milestones so far, and how do you measure success at this stage?

Our focus has been to meet founders and teams. We help where we can by providing suggestions, ideas, and connections. We hope to be making our first investments soon and building our team in the coming months.

What is your long-term vision for 33East and the broader startup ecosystem in Cyprus?

We want to help transform Cyprus into a hive of innovation and entrepreneurship.
Our vision is backed by the government, the EU, and other influential institutions, organisations, and people.
We want to build a multi-fund platform to support a growing flywheel of technology production out of Cyprus.
Rooted in Cyprus. Built for the world.

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