The first investments of the Equity Fund, which was set up by the government in cooperation with the European Investment Fund (a subsidiary of the European Investment Bank) with a total budget of pound 37.5 million, are expected to begin in Autumn, so as to cover the financial gap in the field of entrepreneurship and innovation.
According to a press release by the Ministry of Finance, the Bank of Cyprus has announced its support of the Cyprus Equity Fund, with a participation of pound 2 million in 33East (www.33east.vc) as a founding investor.
The first ever Cyprus Equity Fund was spearheaded by the Ministry of Finance of the Republic of Cyprus in 2023. The fund will be predominantly investing in innovative and early stage Cypriot companies, with the key objective of closing the equity financing gap in the domestic market.
The Ministry of Finance signed a Financing Agreement with the European Investment Fund (EIF) (www.eif.org) which will also be overseeing the operation of the Cyprus Equity Fund. The targ
et size of the Fund will be pound 37.5 million. The Agreement envisages a pound 27 million contribution by the state, largely financed through the national Recovery and Resilience Plan. The remainder will be sourced from private capital contributions.
‘The participation of the Bank of Cyprus, who have traditionally played a key role in promoting innovation in our country whilst contributing to the objectives of the states, demonstrates the importance of the Cyprus Equity Fund and its vision for delivering a modern economy based on knowledge and emerging technologies’, said George Panteli, Permanent Secretary of the Ministry of Finance.
‘The Bank of Cyprus applauds and actively supports the initiative led by the Ministry of Finance in establishing the first ever Cyprus Equity Fund. Our participation in the venture capital fund 33East underlines our commitment to supporting innovation and the diversification of our country’s economy as part of sustainable development. The Bank of Cyprus once again leads the w
ay and we hope that other organisations will follow our example’, said Eliza Livadiotou, Executive Director Finance of the Bank of Cyprus.
33East was selected by the EIF as the fund manager following a competitive process. The Bank of Cyprus will become an investor of the venture capital fund 33East Fund I with a contribution of pound 2 million.
‘We welcome the participation of the Bank of Cyprus in 33East as a founding investor and supporter of innovation and technology in our country’, said Demetrios Zoppos, co-founder of 33East.
Source: Cyprus News Agency