Dorita Yiannakou
Cyprus’ startup scene is catching the eye of investors across the Atlantic. Venture capitalists and tech giants from Silicon Valley are increasingly backing innovative Cypriot companies, drawn by the country’s strong presence in artificial intelligence, fintech, and gaming.
The influx of U.S. investment is helping the local ecosystem grow stronger, positioning Cyprus as a rising hub for technology entrepreneurship. According to the 2025 StartUpBlink report, Cyprus now ranks among the top 40 startup ecosystems worldwide, climbing five spots from last year, and continues to be Europe’s fastest-growing startup environment for the second year in a row.
Numbers highlight the surge: the number of startups in Cyprus grew 71% from 2024, while overall ecosystem activity increased by over 28%. The country has also gained global recognition in specialized tech sectors; gaming ranks 2nd worldwide, fintech 3rd, and blockchain 9th.
In 2024, Cypriot startups secured nearly $100 million in funding, with an average investment of $4.4 million per company. Early indicators suggest 2025 will see similar levels of investment, with U.S. capital playing a major role. Investors from America are known for higher risk tolerance and faster decision-making, often seeking opportunities outside the traditional tech hubs.
Local initiatives are also fueling growth. GEM Capital continues to back gaming startups, while Kinisis Ventures invests in advanced technologies. The recent launch of the 33East Cyprus Equity Fund and the revival of the Cyprus Business Angels Network (CYBAN) are creating a more dynamic and active funding environment, supporting both early-stage startups and more mature, high-growth companies.
Cyprus’ advantages are clear: a favorable tax regime, government incentives to attract talent, and innovation programs such as Boost and Disrupt, which blend public funding with private capital. According to Theodoros Loucaides, CEO of the Cyprus Research and Innovation Foundation (IDEK), “A new generation of entrepreneurs is willing to take risks and build companies with international ambitions from day one. We are working to create an even more supportive environment, including access to alternative funding and expanding global reach.”
With this momentum, Cyprus is steadily establishing itself as a small but powerful player on the global tech stage, attracting dollars, talent, and recognition along the way.
