In a recent panel discussion titled “Made in Cyprus: How to Make Cyprus a Leader in the Startup Ecosystem,” at the Startup World Cup 2024, industry leaders explored the opportunities and challenges that lie ahead.
The panel, moderated by Martin Zarian, Co-founder of Factory 39 and Balabook, included key figures such as Stylianos Lambrou (Co-founder and CEO at Heart Group), Frixos Larkos (Founder at Crowdbase), Sergey Osipov (Co-founder at Placy AI Real Estate Assistant), and Demetris Skourides (Chief Scientist for Research, Innovation, and Technology and President of the Research & Innovation Foundation (RIF)).
The Unique Potential of Cyprus
Cyprus’s potential as a hub for startups is underpinned by its unique advantages, which were highlighted at the outset of the discussion. Moderator Martin Zarian drew a comparison between Cyprus and Italy’s Veneto region, noting that despite its smaller size, Cyprus boasts a surprisingly robust community of successful entrepreneurs. This community, he asserted, is crucial as Cyprus positions itself as “The Tech Island,” a vision that resonates deeply with the panellists.
Stylianos Lambrou, who has been a pivotal figure in Cyprus’s tech ecosystem since his return from the UK in 2013, provided a snapshot of the island’s progress. Lambrou recounted how Cyprus has evolved from a nascent startup scene into a vibrant and growing ecosystem. However, he also stressed that for Cyprus to truly flourish, there must be a cultural shift towards embracing entrepreneurship and, crucially, a tolerance for failure—a trait that has been instrumental in the success of startup nations such as the United States.
The Funding Conundrum
Funding remains one of the most significant challenges facing Cypriot startups, as highlighted by Frixos Larkos, CEO of Crowdbase. While Cyprus is home to substantial wealth, much of it lies dormant, locked away in traditional investments rather than being channelled into the startup ecosystem. Larkos emphasised that his work with Crowdbase aims to address this gap by connecting investors with startups, thereby facilitating the flow of capital in a way that mitigates risk and promotes a deeper understanding of the opportunities within the tech sector.
The conversation about funding was further enriched by insights from Sergey Osipov, a seasoned tech entrepreneur with a track record of successful ventures, including a billion-dollar IPO. Osipov’s story is a testament to the perseverance required in the startup world, as he shared his experiences of launching multiple businesses, often facing setbacks before achieving success. His key message to Cypriot entrepreneurs was clear: global ambition is essential. Focusing solely on the local market, he warned, could severely limit a startup’s potential, both in terms of funding and growth.
Government’s Role in Fostering Innovation
The role of the government in nurturing the startup ecosystem was a focal point of the discussion, particularly in the remarks of Demetris Skourides. As Chief Scientist for Research, Innovation, and Technology, Skourides is at the forefront of the government’s efforts to support innovation. He outlined several initiatives designed to assist startups at various stages of development, from the conceptual phase to scaling up. These programmes include funding opportunities aimed at helping startups build their first MVP (Minimum Viable Product), followed by further support through seed funding and innovation grants.
Skourides also hinted at upcoming policy changes, including revisions to the startup visa and efforts to streamline the process of finding customers for new tech products. These initiatives, he suggested, are part of a broader strategy to create an environment in which startups can thrive. However, Skourides acknowledged that while progress has been made, there is still much work to be done. The government, he argued, needs to move from a reactive stance to a more proactive role in leading the ecosystem forward. He pointed to other European nations, such as Greece, which have taken bold steps to invigorate their startup sectors, as potential models for Cyprus.
Cyprus as a Strategic Tech Hub
A key theme throughout the discussion was the unique position of Cyprus as a potential strategic hub for startups. Stylianos Lambrou highlighted the island’s geographical location, which offers access to both European and Middle Eastern markets, making it an ideal gateway for international business. Additionally, the lifestyle in Cyprus—captured in the phrase “live, work, play”—is a significant draw for entrepreneurs considering relocation.
Lambrou also emphasised the importance of embracing what makes Cyprus unique, rather than trying to replicate the success of other tech hubs like Silicon Valley. The concept of “Tech Island” symbolises not only the growing tech ecosystem but also the quality of life that Cyprus offers—a combination that is increasingly attracting talent and investment from abroad.
Challenges and the Way Forward
While the panel was optimistic about Cyprus’s potential, it also acknowledged the challenges that remain. The difficulty of securing funding, the need for a more open-minded and proactive government, and the importance of fostering a culture that embraces entrepreneurship were all identified as critical issues that need to be addressed.
Frixos Larkos argued that the government must not only respond to the needs of the startup community but also take the lead in driving innovation. He suggested that Cyprus could learn from the proactive measures taken by other countries, which have successfully pushed their ecosystems forward.
Sergey Osipov offered a more pragmatic perspective, advising Cypriot entrepreneurs to ensure their business plans are globally ambitious. He warned that without a focus on international markets, it would be difficult for startups to attract investment and achieve significant growth. Osipov’s own experience of launching businesses in Cyprus and scaling them internationally serves as a valuable model for others to follow.
The Road Ahead
The panellists provided valuable insights into the future of the Cypriot startup ecosystem. The consensus among the panellists was clear: Cyprus has the potential to become a major player on the global stage, but this will require concerted efforts from all stakeholders, including the government, investors, and the startup community itself.
