Cyprus-based venture capital firm 33East on Tuesday announced that it has been selected to manage the Cyprus Equity Fund, further helping to grow and develop the island’s startup and innovation ecosystem.

This follows a milestone in the initiative’s rollout process, when in January 2023, the European Investment Fund (EIF) committee, which was tasked with deciding which venture capital and team will manage the Cyprus Equity Fund, said that it was “at the final stage of selecting a fund manager”.

The Cyprus Equity Fund (CEF) will make available risk financing to companies seeking primarily pre-seed and seed capital to grow their business ideas and projects.

33East venture capital is a new VC in Cyprus. Cyprus entrusted the European Investment Fund with selecting a manager for the CEF.

Following a competitive process, 33East was selected by the EIF as Cyprus’ first venture capital fund supported by public resources.

33East has a target size of €37.5 million, with €27 million coming from the Cyprus Equity Fund and an additional €10.5 million from private investors. The fund will be split into two compartments: a €35m Venture Capital compartment, and a €2.5m Acceleration compartment.

“The main objective of 33East is to finance startups in Cyprus and help foster economic development and growth. The fund aims to support the development of an innovation ecosystem in Cyprus, in line with the objectives set in the Cyprus Recovery & Resilience Plan,” 33East said.

“The Acceleration compartment will provide initial financing of up to €200k to emerging entrepreneurs to research, assess, and develop an initial concept. The Venture Capital compartment will provide financing of up to €1 million to startups at the Pre-seed and Seed stages,” the company added.

What is more, the firm went on to say that the fund will be sector agnostic and founder-focused.

However, the company also clarified that the fund “will centre on verticals where Cyprus startups can compete internationally such as enterprise software, fintech, gaming, marketplaces, logistics, digital health and climate”.

The two partners of the fund are Demetrios Zoppos and Yiannis Eftychiou. In order to be selected they passed a rigorous diligence process by the EIF. Demetrios, a serial entrepreneur and angel investor, has more than 25 years of experience working with early-stage technology companies.

Yiannis, a venture capital investor for a London-based fund manager, brings relevant experience from past instances where he was involved in investing in high-growth companies across Europe, Africa and Asia.

“The launch of 33East is a major milestone in the development of the technology ecosystem in Cyprus. We are thrilled to be able to provide much-needed funding and support to startups in Cyprus, and look forward to working with talented entrepreneurs to support the digital transformation of the Cyprus economy,” 33East concluded.

The company has invited startups who are interested in applying to the fund or who wish to have a friendly discussion with the team at 33East to contact them through their website.