‘Our fund was created out of a shared passion for empowering innovators’

Founded by Kyrillos Akritidis and Murad Salikhov, Schwarzwald Capital is a Cyprus-based venture capital firm that has a distinct focus on fintech and the creator economy.

Akritidis spoke to the Cyprus Mail about how he is steering the fund towards empowering innovators, creating strategic partnerships, and addressing gaps in the market.

The Schwarzwald Capital co-founder also shared the vision, challenges, and opportunities that have shaped Schwarzwald Capital into what it is today.

The birth of Schwarzwald Capital

Schwarzwald Capital was born out of a shared desire to bridge gaps in an increasingly fragmented fintech landscape.

Akritidis explained that the idea to launch the fund stemmed from a pivotal encounter. “Murad and I were at an event some time ago where we met a group of content creators and influencers,” he recalled.

“We were inspired by their energy, their drive and the way they were generating ideas. They had this incredible ability to create something new, to be at the forefront of a new wave of entrepreneurship.”

The meeting sparked something much deeper. Upon reflecting on the interaction, Akritidis and Salikhov recognised a significant gap in the market, particularly in how financial institutions served these creators.

“As we dug deeper into the space, we realised there was a need for a VC fund that really understood the needs of both fintech startups and content creators,” Akritidis said.

From this understanding, Schwarzwald Capital was born. “We wanted to create something that would support innovators – helping them solve real-world problems in the fintech space,” Akritidis added.

“Our passion for empowering innovators, combined with our deep understanding of the financial industry, drove the creation of this fund.” Their shared background in finance and payments became the foundation upon which the fund was built.

Addressing the needs of creators

Akritidis and Salikhov saw an untapped opportunity in the creator economy. Creators, who often work across borders and rely on a variety of digital platforms, face unique challenges.

“Creators often operate in multiple currencies, and they need fast, flexible payment solutions,” Akritidis explained.

“Unfortunately, traditional financial institutions don’t meet these needs.” According to Akritidis, creators are forced to deal with high fees, slow cross-border payments and a lack of local payment methods that make it difficult to manage their finances.

Traditional banking systems were not designed for the dynamic, borderless nature of the creator economy, leaving many creators underserved.

“Banks just aren’t built to handle the specific needs of creators,” he said.

“For example, slow cross-border transactions or high fees are common problems that creators face regularly. It can be frustrating for them to operate in such an environment, especially when they are trying to build a brand and monetise their content.”

Schwarzwald Capital’s response to this was straightforward. “We began by looking for fintech companies that offer innovative solutions that directly address these pain points,” Akritidis explained.

“Our goal is to support companies that provide flexible and fast payment solutions, multi-currency accounts, instant payouts, and better access to marketing revenues. This allows creators to manage their finances more efficiently and focus on what they do best – creating.”

In many ways, Schwarzwald Capital positions itself as a bridge between fintech solutions and the creator economy.

“Our investments are all about enhancing the ecosystem for creators, enabling them to monetise content, grow their businesses and integrate new ideas,” Akritidis added.

Adapting to a fast-evolving industry

The fintech space is fast-evolving, and staying ahead of trends is a must for anyone involved in the industry.

“Fintech is changing all the time. To stay ahead, you must constantly adapt and learn,” Akritidis said. For him, this means never stopping the process of learning, expanding networks and staying engaged with key players in the industry. “I always say, never stop running,” he laughed.

“You need to meet new people, stay in touch with industry leaders and keep an eye on emerging trends.”

One of the biggest shifts in fintech is the growing impact of artificial intelligence (AI) and machine learning (ML).

“We’re going to see AI and ML-driven financial services take a much larger role,” Akritidis predicted.

“Financial services will be transformed by these technologies, from improving customer service with AI-driven chatbots to using machine learning for more precise risk assessment and personalised financial services.”

In addition to AI and ML, Akritidis foresees breakthroughs in digital identity and biometrics. “We expect to see a breakthrough in digital identity, biometrics and regtech,” he said.

“These technologies will provide more secure and efficient ways for users to verify their identities and conduct financial transactions.” he continued. “Compliance automation will also be a game changer.”

Blockchain technology, too, is on Akritidis’ radar. “We’re going to see more adoption of blockchain, particularly for cross-border payments and secure transactions,” he said.

“The use of blockchain will continue to grow, especially in the areas of financial services and digital assets.”

This is something that Schwarzwald Capital is keeping an eye on closely, making sure their investments align with the latest trends.

Overcoming challenges in supporting startups

The journey of supporting fintech startups is not without its challenges. Akritidis noted that one of the biggest hurdles is the sheer volume of startups in the market.

“There are so many new startups launching all the time. It’s difficult to cut through the noise and identify those with truly disruptive ideas,” he said.

To solve this problem, Akritidis and his team at Schwarzwald Capital leverage their industry expertise.

“We rely on our deep understanding of the industry to identify promising startups,” he explained.

“We focus on companies with strong teams and scalable business models. That’s crucial – it’s not just about having a great idea, but having the ability to execute that idea and scale it successfully.”

Another challenge is the type of support early-stage companies require. “Early-stage companies need more than just capital,” Akritidis said.

“They need experience. They need guidance. And they need to be connected to the right network.”

That’s where Schwarzwald Capital’s extensive network and mentorship come into play.

“We offer strategic guidance, help with navigating legal and regulatory landscapes, and introduce companies to potential business partners,” he said.

“This is where our value really lies – not just in providing capital, but in offering hands-on support and experience.”

Fintech and the creator economy

Schwarzwald Capital’s focus on both fintech and the creator economy might seem like a delicate balance.

Akritidis, however, views it as a natural synergy. “At first glance, it might seem that fintech and the creator economy are two very different sectors. But in reality, they are deeply intertwined,” he explained.

“Fintech provides the infrastructure that helps creators monetise their content, manage their finances, and grow their businesses. At the same time, creators are helping to drive innovation in fintech, particularly by demanding new and more flexible financial tools.”

By investing in both, Schwarzwald Capital creates a feedback loop of innovation. “We believe that investing in both sectors is essential for the development of a more inclusive financial ecosystem,” Akritidis said.

“Creators are reshaping the way people think about business and finance and fintech is enabling that transformation. It’s a mutually beneficial relationship.”

A success story: destream

Schwarzwald Capital has already seen success in supporting innovative startups. One of their notable investments is destream, a Cyprus-based company that offers a platform to help creators monetise their content.

“destream has created a unique value proposition for content creators,” Akritidis explained.

“They’ve seen significant growth and recognition in the industry, and it’s been incredibly rewarding for us to be part of that journey.”

destream’s success has been marked by expansion and increased visibility in the creator community.

“They’ve participated in major events like TwitchCon and are now a recognised player in the market,” Akritidis said.

“We’ve supported them in strategic areas, such as navigating legal and regulatory challenges, and connecting them to business partners who have played a key role in their growth.”

Cyprus: A strategic advantage

Cyprus, with its favourable regulatory environment and growing tech ecosystem, provides a solid foundation for Schwarzwald Capital’s operations.

“Cyprus has a lot to offer, particularly for fintech companies,” Akritidis said.

“The country is strategically located at the crossroads of Europe, Asia and Africa, which makes it an ideal base for businesses looking to expand into new markets.”

The island’s regulatory framework also plays a key role in supporting startups.

“There are incentives and support programmes, such as tax breaks and access to funding, that are crucial for early-stage companies,” he said.

“Cyprus has created an environment where innovation can flourish, and that’s something we make the most of.”

Cyprus as a fintech hub

Akritidis is confident that Cyprus has the potential to become a major hub for fintech innovation.

However, he stresses that continued investment in infrastructure, talent, and innovation is crucial.

“Cyprus has created a solid foundation, but it needs to keep developing,” he said.

“To remain competitive, we need to invest in better infrastructure, attract international talent and create a culture of innovation,” he added.

He also highlighted the importance of collaboration between the private sector, government, and financial institutions.

“If Cyprus can continue to build on what it has, it could become a leading fintech hub,” Akritidis concluded.