'Fuel for Founders: Building a Startup Nation,' considered at the TechIsland Summit

A panel at the TechIsland Summit in Limassol has explored key policy tools and ecosystem upgrades needed to support startup success — from digital nomad visas and stock options to attracting venture capital.

Including insights from investors, policymakers, and successful founders, the discussion aimed to identify what’s working, what’s missing, and what’s next in Cyprus’ journey to becoming a leading hub for innovation and entrepreneurship.

The expert speakers were Dr. Nicodemos Damianou, Deputy Minister of Research, Innovation and Digital Policy, Anna Melnichek, CEO, Melnichek Investments, Eli David, CEO, StartupBlink and Michael Economou, Entrepreneur & Former Co-founder of Foody. The panel was moderated by Vassos Vrachimis, Head of Consulting, PwC Cyprus.

Starting off the discussion, Damianou noted that the government could not build a startup nation alone. He said the business sector or which the tech sector was a crucial component.

He said that talent, expertise and support structures were needed to support the above. As the Deputy Minster noted, incentives including tax incentives were in place, they could be improved. “But the question is not that, it is how do we focus on those areas where we have a competitive advantage?,” he added, suggesting these could include but were not limited to the areas of gaming and fintech which StartupBlink figures indicated Cyprus was a leader in.

Melnichek, on her part, said that Cyprus had made promises to investors and that it was time for these to be realised. She said that this would bring about investment that would benefit Cyprus on many levels.

She noted that if the ‘rules of the game’ were made clear it would open the way for more investment.

Melnichek suggested that while the current banking system could continue as is for many years, the first bank to introduce practices that could help keep more money in the country, would also benefit greatly as an organisation.

In his intervention, Economou recalled advice that he had been given that while small, Cyprus was a mature market that could be an ideal location as a testing playground for larger markets. He also suggested that a way forward could be making it possible for businesses to be created but also to close “in one day.” This, he said, would allow entrepreneurs to quickly move on to new ideas if earlier ones were not working.

Eli David, comparing Cyprus to other nations, said that the momentum in Cyprus was excellent. “The momentum is so good I would tell investors here, ‘stay and bring your friends,” he said.

He also said that he was impressed with what the government of Cyprus had done in terms of tax incentives and non-doms etc. “I do think there needs to be more participation from the private sector,” he added, as well as the entrepreneurs themselves.

Eli noted that in Israel, parents were proud when their children began startups, and the same mentality had to be extended to other countries.

Damianou continued his intervention by outlining the incentives and facilities Cyprus was offering, including but not limited to the launch of Cyprus-focused venture capital firm 33East.

He also, among other things, pointed out that helping the sector mature would also encourage further growth.

Melnichek cautioned that speed was of the essence for investors.

As a startup founder, Economou noted that currently funding was very limited on a global scale and that founders themselves needed to do more “and step up our game” as the startup sector was also changing and becoming more competitive.

David noted that psychology changes were motivated by success. “In order to do it, we need to double down on what works. Gaming works well here, fintech works well here,” he suggested, rather than concentrating all focus on other fields such as defence and AI.

He also noted the benefits of Cyprus’ geographical location, and called on entrepreneurs to keep moving ahead.

On human resources, Damianou noted that this had been something all potential investors asked about. He said that while incentives were in place, new measures such as those encouraging horizontal professional shifts should also be encouraged to match requirements. Damianou said the state had already got dedicated projects underway to this end.

Melnicheck, in her conclusion, encouraged Cyprus to continue to encourage a strong community, providing support between stakeholders.