Interview in “Fast Forward” in the framework of the Global Startup Competition Unicorn Pitches Limassol
As part of the global startup competition Unicorn Pitches Limassol, which this year brings together investors and technology leaders from around the world, we spoke with Vassilios Demetriades, President of the Cyprus International Businesses Association and a Jury member. His experience in shaping European and national policy, as well as his role in transforming Cyprus’s maritime sector and advancing the country’s innovation landscape, makes him one of the key voices on how Cyprus can strengthen its position as a global innovation hub.
An interview was conducted by two representatives of the organizing team of Unicorn Pitches Limassol: Marianna Konina, Founder and CEO of Reputation City, a reputation management company that focuses on building digital profiles for tech businesses and startups, and Volodymyr Zhukov, Venture Partner at Network VC, AI & Deep Tech Advisor, Startup Growth Strategist.
Cyprus is uniquely positioned at the crossroads of Europe, the Middle East, and Asia. What makes the island a strong candidate to become a global innovation hub?
I see Cyprus’s potential from its geographic, economic, and strategic advantages. The location at the intersection of three continents offers access to diverse markets and cultures, supporting a dynamic international business environment. As an EU member, Cyprus provides a stable base with access to the world’s largest single market, attracting companies seeking a European presence.
I can say that Cyprus offers a pro-business environment. We have one of the EU’s most competitive corporate tax rates. An incentive such as the IP Box regime, which reduces the effective tax rate on intellectual property income, is important. Our legal framework, based on English common law, provides reliability for international businesses. The tech sector now contributes 16% of Cyprus’s Gross Value Added (€8.5 billion) and has demonstrated resilience and growth, even during global downturns. The Cyprus Startup Visa and Digital Nomad Visa make talent attraction. We did many, but we can do more for sure.
Yes, we can see that Cyprus has made massive progress in recent years. But which elements already work well for attracting tech companies and startups – and what is still missing?
Cyprus has attracted tech companies and startups through its favorable tax system, including a low corporate tax rate. As an EU member, it offers a stable regulatory environment and access to a market of over 500 million consumers. However, to become a leading innovation hub, Cyprus must address several gaps. Early-stage funding is limited, and there is a need for more venture capital and angel investors, particularly for deep tech and high-risk ventures. Strengthening the connection between the education system and the tech industry is essential to commercialize research and create university spin-offs. Additionally, streamlining bureaucratic processes, improving air connectivity, and joining the Schengen Area would further enhance Cyprus’s appeal to international talent and businesses.
Based on your experience in government and EU-level policymaking, what long-term vision should Cyprus follow to accelerate innovation over the next decade?
We need to build a specialized innovation ecosystem focused on high-growth sectors where Cyprus holds a competitive advantage. This vision rests on three core pillars. First, Deep Tech and R&D Excellence: The National Strategy for Research and Innovation 2024-2026 highlights areas such as digital technologies, AI, cybersecurity, innovative materials, and space technologies. Targeted investment and policy support can attract top researchers and drive advanced intellectual property development. Second, establishing Cyprus as a global hub for sustainable shipping and the blue economy: The government should fully utilize the Maritime Spatial Plan to unlock sustainable growth in marine sectors and attract investment, fostering responsible blue innovation. Third, becoming a magnet for international talent and investment: Cyprus should maintain a favorable tax and business environment and continue to improve quality-of-life factors. A welcoming atmosphere will help attract both talent and long-term investment.
What about the relationships between the government, the private sector, and the community?
I see it as a shared national mission to establish Cyprus as a premier destination for building and scaling global technology companies. We can see many different tech communities, big and small, but the dialogue between the tech industry and the government can certainly improve. All three stakeholders should share this mission and have roles that are harmoniously connected and complement each other. For example, the government can lead by promoting STEM education and digital skills from an early age. To make special programs and grants for tech companies more visible and accessible. The private sector can contribute by creating mentorship programs, supporting accelerators and incubators, and investing in corporate venture initiatives. The community can play its part by celebrating local success stories and creating a supportive environment for entrepreneurs.
Which government reforms or policy changes would have the greatest impact on attracting R&D, AI, fintech, and deep-tech startups to Cyprus?
Cyprus is already attracting many businesses. For example, Cyprus’ startup ecosystem is ranked #40 worldwide, up five spots from the previous year regarding the Global Startup Ecosystem Index 2025. It ranks 18th in Western Europe, right after Iceland, and is followed by Greece. It’s a great result! And I expect more good news in the near future. In my opinion, now is the time to focus on a series of targeted reforms and policy changes. While the current IP Box regime is attractive, the government could introduce more direct incentives for R&D activities: tax credits, grants for high-risk research projects, and support for the establishment of specialized research centres in areas like AI and deep tech. The National Strategy for Research and Innovation 2024-2026 provides a strong framework for this, so we are on the right track.
But we still need to increase access to early-stage funding. The government can play a crucial role and create a national venture capital fund to attract international VCs to Cyprus, providing co-investment funding for local angel investors, and supporting the development of crowdfunding platforms. The goal should be to create a vibrant, diverse funding ecosystem that supports startups from the seed stage to scale-up.
But the business community also has a responsibility to shape the ecosystem. What could be their motivation to invest more in startups, accelerators, and tech education?
You are right, and we are again talking about the community’s and government’s shared work. The government can encourage established companies to invest in startups by offering tax incentives for corporate venture capital investments. For example, include tax deductions for investments in early-stage startups or a reduction in capital gains tax on the sale of startup shares. By making it more financially attractive to invest in startups, the government can unlock a significant new source of funding for the ecosystem. At the same time, we need to showcase the ROI of innovation and highlight the strategic benefits of engaging with the innovation ecosystem. The government and industry associations like CIBA can help to build awareness and change mindsets – publishing reports on the economic impact of the tech sector, organizing events to celebrate successful entrepreneurs, and creating a platform for knowledge sharing and best practices.
Innovators can choose Cyprus to relocate. But how to retain them long-term?
Cyprus is well-known as a destination for innovators. Moreover, I believe Cyprus can become a “startup nation” in Europe. And now we need to use a holistic approach that goes beyond financial incentives. Now is the time to focus on creating a world-class living and working environment. Startups need a fast, efficient, and supportive business environment. This means further streamlining administrative processes, providing easy access to funding and mentorship, and building a strong, connected community of entrepreneurs. Another requirement – a quality of life, which is a key factor in retaining talent. Cyprus already has a lot to offer, with its beautiful scenery, pleasant climate, and safe environment. However, to compete with other global hubs, it needs to continue to invest in its infrastructure and services.
What is your perception of Unicorn Pitches Limassol as part of activities on the young entrepreneurs market in Cyprus?
I see an event like Unicorn Pitches in Limassol as an important and timely contribution to Cyprus’s entrepreneurial ecosystem. Its value goes far beyond networking or meeting venture capitalists and angel investors – it gives us a clear view of the scale and potential of our startup community. Events like this help us understand why innovation matters for the country’s economic future and why this sector deserves consistent support from government institutions, the education system, and the private sector. I truly hope this will not be a one-off occasion and that we will soon see a growing number of similar initiatives that empower young founders across Cyprus.
How does the Cyprus International Businesses Association take part in these improvements?
We build a thriving and inclusive community, because practice shows us – a strong sense of community is essential for helping people feel at home. Cyprus should actively foster a vibrant and inclusive environment for international professionals and their families by organizing networking events, creating online communities, and providing meaningful support for integration into local society. This is one of the core objectives of our Association. Through our monthly networking events, we create opportunities for executives at international companies to engage, connect, and build both business and social partnerships within the local business ecosystem. By making it easy for people to form lasting personal and professional relationships, Cyprus can create a “sticky” environment that people value – and choose to stay in.
Finally, what is your key message to young Cypriot tech entrepreneurs?
The future of innovation in Cyprus is in their hands, and there has never been a better time to build it. You are part of a generation with the talent, ambition, and opportunity to transform our country into a global innovation hub. Use the unique advantages that our island offers. Leverage this strategic location, strong business environment, and deep roots in industries like shipping and tourism. But don’t be afraid to think bigger. Look beyond our shores and build businesses that can compete globally.
As President of the Cyprus International Businesses Association (CIBA), I am committed to supporting the tech community in every step of the way. We also established dedicated Technology and ESG Committees, serving as platforms for brainstorming, identifying challenges, and shaping policy recommendations for the government. You are all welcome to join, engage actively, and become part of a community that is shaping the future of innovation in Cyprus.