Cyprus fund to begin investments
The first investments by the Cyprus Equity Fund, set up by the Cypriot government in cooperation with the European Investment Fund (a subsidiary of the European Investment Bank) and with a total budget of 37.5 million euros, are expected to begin this fall, so as to cover the financial gap in the fields of entrepreneurship and innovation.
According to a press release from the Ministry of Finance, the Bank of Cyprus has announced its support for the Cyprus Equity Fund, with a participation of €2 million in 33East as a founding investor.
The Cyprus Equity Fund, the first of its kind, was spearheaded by the ministry last year. It will predominantly invest in innovative and early stage Cypriot companies, with the key objective of closing the equity financing gap in the domestic market.
The ministry has signed a financing agreement with the EIF, which will also be overseeing the operation of the Cyprus Equity Fund. The target size of the Fund will be €37.5 million. The agreement envisages a €27 million contribution by the state, largely financed through the national Recovery and Resilience Plan. The remainder will be sourced from private capital contributions.
