Cyprus is rapidly redefining its place on the global startup stage. According to the StartupBlink Ecosystem Index 2024, Cyprus recorded the largest worldwide rise this year—climbing nine spots in the global ranking and seven spots to rank 27th in Europe—and earned the title of the fastest-growing startup ecosystem in the European Union.
Stellar Performance In A Small Package
Cyprus’ meteoric rise is reflected in a series of impressive statistics:
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- 4th globally among countries with populations under 2 million.
- 6th globally in startup exits valued under $1 billion.
- 9th globally in the number of investors per capita.
- A 5x surge in startup creation since 2020.
- The only nation under 2 million with four cities ranked in the global startup index.
Notably, Cyprus is the only nation in its size bracket boasting four cities—Limassol, Nicosia, Paphos, and Larnaka—ranked in the global startup index. Limassol, in particular, has been a standout performer—recording a staggering 192-spot global jump among the top 250 worldwide, as well as ranking among the top 100 for Social & Leisure industries.
In addition to these standout figures, Cyprus is carving out a niche in key sectors—ranking 39th globally in Fintech and 25th in Gaming, with Limassol emerging as the top city in Southern Europe for gaming innovation and ranked 5th overall in Europe.
Leadership Speaks: Vision And Commitment
RIF’s Director General, Theodoros Loukaidis, encapsulated the significance of these achievements:
“Cyprus’ startup ecosystem is expanding rapidly. This recognition reaffirms our commitment to strengthening innovation and entrepreneurship. With strong government support, targeted funding programs, investment incentives, and talent attraction initiatives, we are fostering a favorable environment for startups to develop products, secure private investment, scale internationally, and succeed. As Cyprus continues to establish itself as a regional hub for research, innovation, and technology, these achievements validate the country’s strategic vision and its ability to bring it to life.”
This acknowledgment highlights how well-coordinated public policies and strategic investment pay dividends in Cyprus’ dynamic startup landscape.
A Strategic Shift Fueled By Data And Vision
Chief Scientist Demetris Skourides, who has been instrumental in steering the country’s research and innovation agenda, emphasizes the importance of data-driven insights:
“As a strategist, I often get asked how I interpret the signals that our strategic vision is working. The answer is simple: measure what matters. Performance measurement and benchmarking are great tools that help us zero in on what really counts. In less than 18 months since my appointment as Chairman, our efforts have already yielded outstanding results—Cyprus now boasts 5x more startups than in 2020.”
Skourides underscores that these strides are not just numbers on a chart but are foundational to Cyprus Vision 2035, aiming to create new jobs, revenue streams, and opportunities, especially in STEM fields.
Read Cyprus Seeds Shines: Recognized As One Of Europe’s Top Startup Hubs
Government Initiatives Powering The Ecosystem
A significant driver behind these impressive metrics is the proactive role of the Cypriot government. In 2020, the government established a Deputy Ministry of Research, Innovation, and Digital Policy to accelerate the nation’s innovation agenda.
Driving Factors And Future Outlook
The remarkable growth of Cyprus’ startup ecosystem can be attributed to:
- Robust Government Support: Initiatives like attractive tax incentives, targeted funding programs, and a dedicated startup visa program welcoming entrepreneurs from outside the EU and EEA.
- A Rich Talent Pool: Cyprus boasts one of the highest numbers of graduates per capita in the EU, bolstered further by an influx of IT professionals from Russia and Ukraine.
- Strategic Global Partnerships: The presence of international companies such as NCR, Viber, Logicom, Semrush, and Amdocs further enhances the local ecosystem’s dynamism.
- Sectoral Diversification: With strong performances in fintech, regtech, IoT, cybersecurity, and gaming, Cyprus is well-positioned to continue attracting investors and driving innovation.
Conclusion
Cyprus’ unprecedented rise in the global startup ecosystem isn’t just a statistical anomaly—it’s a testament to the country’s strategic vision, proactive policies, and relentless drive to nurture innovation. As the ecosystem continues to flourish, Cyprus is poised to emerge as a regional hub for research, technology, and entrepreneurship, setting the stage for a transformative era in the European startup landscape.
Stay tuned for more insights into Cyprus’ startup revolution as the island continues to accelerate its momentum on the global stage.
