Cyprus for Startups: All you need to know.
The StartupBlink Analytical Center annually researches the global market and generates ratings of the TOP-100 countries and TOP-1000 cities most suitable for innovative entrepreneurship and the development of startup ecosystems. In 2022, Cyprus ranked 55th among all countries in the world and 19th among European countries.
The TOP-1000 best cities in Cyprus for launching and promoting startups include Paphos, Limassol, and Nicosia. If you are considering relocation or founding an IT company in Cyprus, be sure to take a look at these cities.
Why trust StartupBlink data?
StratupBlink is a project of several entrepreneurs from Croatia and Switzerland. The purpose of its creation is the development of the global startup community.
StartupBlink researches thousands of data and builds a compelling selection of the best startup ecosystems around the world.
Objective, quantifiable data ensures maximum ranking accuracy in the Global Ecosystem Index.
In 2022, the cities of Cyprus took the following places:
● Limassol — 379th place (+56 points)
● Nicosia — 402nd (+12 points)
● Paphos — 848th place (+255 points)
The highest rating on the island is near Limassol. There are several reasons for this:
● the city's dominant startup ecosystem;
● increase in investments, which may provoke a promotion in the rating;
● The Cypriot government is making great efforts to develop and promote the startup ecosystem of the island;
● modern and free market.
Cyprus for startups today
The island attracts innovative companies from all over the world, as it is one of the most convenient points to start working with the international market. This is due to the system of English law, an active entrepreneurial community, and government programs aimed at developing IT businesses.
"Cyprus is a great place to host startups in the fields of software, fintech, data storage and processing, social entrepreneurship, and entertainment."
The island government is promoting a variety of initiatives, including a special approach to taxation for innovation and investment, startup visas, and more. You can read more about this in the article "IT-Cyprus."
Programs are also being implemented to attract foreign investors. These projects are funded by consulting companies and the Bank of Cyprus.
The growing startup and fintech hub of Limassol offers a significant list of services to support an innovative business. In addition to the progression of fintech, investors are also getting good opportunities to work with the gaming industry, blockchain technologies, and cybersecurity.
For example, Nicosia hosts a university that is the first in the world to offer a master's course in Digital Currency.
How to get funding for a startup?
In Cyprus, startups can apply to participate in the Horizon Europe research and development program and receive a grant of up to €2.5 million.
The Entrepreneurship Fund contributes to the development of this area in the country, expanding access to financing for small and medium-sized startups. In addition, the budget for the development of the project can also be obtained from government agencies such as Invest Cyprus, Launch in Cyprus, and CYPEF.
There are also many accelerators located here. Among the most famous: are ARIS, IdeaCy, Gravity, Chrysalis Leap, and Kinesis Ventures. There are also several business incubators and innovation centers - Rise, CYENS Techub, CyRic, C4E, and EnergyLab.
The most active venture capital players in Cyprus are iTech Capital and Embria.
It is worth paying attention to Israeli funds. They like to create development departments and holding structures.
Startup communities are also highly organized on the island. For example, the Cyprus IT Party gathers all like-minded people and entrepreneurs. This is the center of gravity that opens the door to other niche communities: FinTech, Gaming, Big Data, and AdTech.
It is also worth highlighting a non-profit organization with the support of more than 150 IT companies - TechIsland. Its goal is to overcome the distance and promote the development of a dialogue between entrepreneurs from the IT sector and the government, creating a global brand of Cyprus as an IT hub for promising companies and highly qualified technical specialists.
Pay attention to three more active entrepreneurial communities - Startup Cyprus, CyprusInno, and CyBAN. CyBAN brings together business angels.
Summing up, we can say that Cyprus can become an excellent platform for startups looking to enter the European market. It is easy to make contacts here, both local and international.
FORLIFY is also deeply involved in the tech market, so we can always help our members get involved in the IT life of the island. We're helping companies to obtain IP box and provide them with all tax information, accountants, and lawyers if needed, we also have partners who would gladly invest in tech companies. Join our family)