"Nothing beats the power of many when it comes to creating impact! And therefore bringing and keeping together - through a clear set of shared goals and values - those with the innovative ideas (startups), those with the capital (investors) and those that can help to remove barriers to innovation and provide additional financing and support to scale (the state) can nurture a hotbed of innovation, as well as a solid support structure as a solid foundation for the success of our innovative startups, European Innovation Council (EIC) Stavriana Kofteros notes.
In an interview ahead of the an EIC Information Day due to be held in Nicosia on 18 February, Kofteros talks about the EIC's evolving role and the characteristics that distinguish truly breakthrough startups.
Kofteros also shares her expert opinion on the steps she considers crucial for Cyprus to transition from an "emerging" to a truly competitive innovation hub on the European stage.
Among other things, she in addition shares what's new in the EIC Work Program and the pitfalls most Cypriot projects stumble on when applying for funding.
As an EIC Ambassador, how do you see the role of the EIC evolving in shaping the European deep-tech market in the coming years?
The European Innovation Council (EIC) - with the EIC Fund as a major component - is evolving year-on-year into a stronger and more influential player in the European and global deep-tech market. Established in 2020, the EIC Fund is now the largest deeptech investor in Europe with a capitalization of over €4 billion. Through patient capital and strategic co-investments, the EIC Fund empowers visionary entrepreneurs to bring breakthrough technologies to market, driving Europe’s competitiveness and innovation leadership.
The EIC’s relatively new Strategic Technologies for Europe Platform (STEP) provides larger investments (up to €30 million per company) to help deep-tech firms grow and compete globally while remaining in Europe; along with the large portfolio of deeptech projects and companies supported by the EIC, these ‘big tickets’ are expected to grow immensely with such an influx of funding and become big players in the global deeptech market, thanks to EIC support.
The European Innovation Council (EIC) was established under the EU Horizon Europe program (2021 – 2027), with a budget of €10.1 billion over seven years to support game-changing innovations from early-stage research to proof of concept, technology transfer, and scale-up of deeptech startups. As European competitiveness and strategic autonomy take center stage moving forward, I envisage the EIC continuing to be a cornerstone of FP10, the Horizon Europe successor program (2027-2035), as proposed.
Based on your experience as a jury member, what characteristics distinguish truly breakthrough startups?
Exactly the same as a deeptech VC, actually. Breakthrough, defensible science and tech that gives clear competitive advantage, large market- yes, in the Bs i.e. Billions, ambitious and sound projections, a validated business model, proven product-market-fit, relevant go-to-market plan, and definitely an exceptional team to make it happen – pivots included – properly incentivized and motivated according to the stage of the company and lastly, good governance appetite at a minimum and clear cap tables. Everything matters, as everything could become a spearhead or a soft underbelly, but we do indeed pay particular attention to science, tech, and innovation. The Excellence criterion, because as a rule of thumb, the other two (Impact and Implementation) are largely fixable if the team takes in the feedback, but it is very difficult to fix excellence if it’s not there.
What's new in the EIC Work Program, and what opportunities do you think are best suited to Cypriot startups?
The EIC Work Program 2026 sees the introduction of the EIC Advanced Innovation Challenges, a potentially groundbreaking pilot implementing high-risk, high-impact ‘ARPA-like’, i.e. the US Advanced Research Projects Agency (ARPA). EIC program managers have a proactive role in the running of the calls and programs, which have a two-stage approach, and a focus on challenge-driven, high-risk, high-reward projects in specific strategic areas such as AI, quantum computing, clean technologies and more.
Another major development has been the major simplification of the EIC Accelerator, with full proposal forms cut from 50 to 20 pages; faster, with evaluations every two months instead of every six months) and more robust, with deeper technology assessment anticipating the due diligence needed for investments.
Another novelty is the EIC Pre-Accelerator, which is a funding scheme designed to bridge the gap for early-stage deep-tech startups in "widening countries" (regions with lower innovation performance), of which Cyprus is one. The program provides grants between €300,000 and €500,000 as well as coaching, mentoring, and networking opportunities through the EIC Business Acceleration Services (BAS). Successful completion of the Pre-Accelerator provides a "fast track" route to the full EIC Accelerator program.
What are the most common shortcomings or pitfalls you see today when Cypriot companies apply for funding from the Accelerator or Pathfinder?
I do not have access to such information. That said, the truth of the matter is, no Cypriot startup made it to the Accelerator’s panel interviews so far. What makes startups stand out at the panels in such a highly competitive process, where we see the elite of European deeptech startups, is the bar. When we say breakthrough, defensible innovation, impact etc., we mean at least by an order of magnitude. How are you 10xing the current state of the art? How does your innovation edge translate into a billion-euro company? Is your team the best in the world and fit for purpose with insane drive and passion?
What steps do you consider crucial for Cyprus to transition from an "emerging" to a truly competitive innovation hub on the European stage?
A lot of things play a role. As they say, it takes a village to raise a child, and in that sense, the entire ecosystem plays a role: regulatory environment, taxation, pool of talent, everything to a bigger or smaller extent. But there is one thing that is entirely our own. For each as individuals. The one thing that makes things happen not because of all the rest, but despite of everything else. Mindset. Resilient, ambitious, think big, work hard, go-getter, don’t take no for an answer mindset that takes the humbling lessons, pivots, learns, reapplies and does what is needed to scale, away from complacency.
How can cooperation between startups, investors, and the state be improved to accelerate the development of the ecosystem?
Nothing beats the power of many when it comes to creating impact! And therefore bringing and keeping together - through a clear set of shared goals and values - those with the innovative ideas (startups), those with the capital (investors) and those that can help to remove barriers to innovation and provide additional financing and support to scale (the state) can nurture a hotbed of innovation, as well as a solid support structure as a solid foundation for the success of our innovative startups.
And especially for Cyprus, sometimes it’s important to remember that we need to enable and get of our own way and allow the markets to work. On that note, the single most important upcoming development is the EU-INC, known as the 28th Regime -one legal incorporation, in one member state, valid across the EU - and now that Cyprus has the Presidency, is fine time to pursue it as probably the only regulation in over-regulated Europe that makes sense for its competitiveness to truly help startups scale cross-border and beyond the Union. Bold visions require bold actions.
The presence of women in technology is increasing, but not at the rate it should be. What is the real obstacle today and how can it be overcome?
I could quote all the official reasons. There are so many issues at play here. Hardcore STEM women beyond Academia are often more reluctant to set up their own deeptech company, either due to risk aversion, the caretaker role and kids, and the fact that there is less capital directed towards female-run companies globally and whether we admit it or not tons of unconscious bias in the workplace. We do need as many initiatives as possible to allow women in tech to break through ‘the glass ceiling’, providing them with the necessary tools, financing, and reputations to succeed in the innovation industry. The EIC has a range of initiatives to bring forward women in innovation, such as the Women Leadership Program, Women Tech EU, quotas for women in management positions in the final stages of the EIC accelerator (a target of up to 40% women-led companies to be invited to the final-stage interviews). Having said this, let me be very clear, this is not doing a favor to women – all other criteria are there. It’s a positive bias. I remember back in the early days of the pilot of EIC, a very clear stance was taken with strong female representation in the Investment Juries. Actions always speak louder, and they normalize against unconscious biases. So yes, we need more such actions until we need them no more.
What makes Europe a more attractive option for founding and scaling a startup?
It’s beautiful and a fantastic place to live when it comes to employee rights, so it’s a great place to build a sustainable workforce. There is incredible research taking place just waiting to be commercialized, and an incredible deep tech talent pool waiting to flourish. Support structures for startups are there, perhaps not in abundance, but the financing in the area is becoming more plentiful. There are, of course, linguistic and cultural differences across all countries across Europe, but these aspects in my opinion, these days are not too challenging to overcome. And once we pass the EU-INC regulation – pun intended- Europe becomes a choice and hotbed for breeding unicorns.
How does the EIC leverage Europe's STEM excellence to turn it into solutions that can quickly reach the market?
The European Innovation Council (EIC) is one of the few programs that provides funding, business acceleration services, and strategic partnerships throughout the innovation lifecycle to transform research results into marketable solutions.
The EIC Pathfinder funds early-stage, high-risk research by multi-disciplinary teams with the potential for technology breakthroughs, the EIC Transition supports the development and validation of novel technologies from the lab to the market, and the EIC Accelerator targets deep tech startups and SMEs with high-impact innovations. The EIC also has a range of additional initiatives such as Business Acceleration Services (BAS) and the EIC Tech to Market (T2M) Program, to help bridge the lab to market gap.
Do you see specific technological trends or areas emerging where Cypriot teams have particular potential to distinguish themselves internationally?
Cypriot teams are talented and at least equally capable as any team from anywhere in the world. In a world where every ecosystem has its own challenges and advantages, mindset is the primary distinguishing factor of grit and resilience and that is what will make everything and anything happen. That said, I do consider life sciences and health particularly strong in Cyprus, with high excellence at the state-of-the-art and beyond. What lacks, bluntly, is the mindset – the hunger, drive and I would dare say, the humility to pursue relentless commercialization through the uncertainties and hardships of entrepreneurship. The more we work on mindset – merely the byproduct of conscious discipline and drive- Cypriots will be unstoppable. Not even the sky is the limit nowadays!
