Cyprus has once again been recognised as the fastest-growing startup ecosystem in the European Union, following the release of the 2025 StartupBlink Global Startup Ecosystem Index.
According to a report published on Thursday, Cyprus rose five places in the global rankings to reach the 40th position worldwide.
This marks a significant milestone for Cyprus, which is also ranked second globally among countries with populations under two million.
Moreover, Cyprus recorded an ecosystem growth rate of 28.22 per cent, the highest in the European Union for the second consecutive year.
The report highlighted a 71 per cent increase in the number of startups in Cyprus compared to 2024, underlining the momentum that the local innovation landscape continues to gain.
In terms of regional performance, Cyprus now ranks fourth in Southern Europe.
All four of Cyprus’ startup-recognised cities (Nicosia, Limassol, Larnaca and Paphos) made measurable progress in the global index, a unique achievement for a country of its size.
According to the 2025 report, Cyprus is the only country with a population below two million to have four cities included in the global startup index.
Each city recorded an improvement in its position, reflecting a broader national trend of innovation and entrepreneurial growth.
Furthermore, Cyprus also demonstrated strength in a number of specialist areas, reflected in its performance in sector-specific rankings.
It ranked second globally in the gaming sector, third in fintech across Southern Europe, and ninth in the European Union in blockchain technology.
Limassol, in particular, emerged as a regional tech hub, ranking 8th in Southern Europe and 5th in the European Union for blockchain activity.
The report attributes this rapid development to Cyprus’ strategic geographical position as well as government-driven incentives and policies aimed at promoting innovation, attracting investment and nurturing talent.
These include fiscal advantages and targeted support schemes designed to strengthen entrepreneurship.
The official recognition of Cyprus’ achievement took place during the Reflect Festival 2025, which kicked off on Thursday.
At the event, Eli David Rokah, CEO of StartupBlink, presented a commemorative plaque to the Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou, on behalf of the president of the Republic.
Expressing satisfaction with the results, Damianou stated that they “reflect the commitment and dedication of the Cypriot government to continuously reinforce Cyprus as a hub of innovation, technology and entrepreneurship, both regionally and internationally.”
He went on to congratulate the entire ecosystem for its accomplishments. He stated that “our goal is to effectively support technology companies and innovative startups in scaling up, collaborating with the local ecosystem, and successfully entering the global market”.
What is more, Damianou highlighted the government’s efforts to foster job creation and economic value through investment in knowledge and digital infrastructure.
“Through targeted funding tools, support structures, a business-friendly environment and a methodical programme of digital transformation, we are turning Cyprus into an attractive destination for entrepreneurial and investment activity,” he said.
“We are building a more resilient and competitive economy, grounded in knowledge and technological advancement,” the minister concluded.
Click here to change your cookie preferences