Cyprus' startup ecosystem is maturing but faces critical challenges including founder quality, access to capital, and international scaling, warns Dionysis Partsinevelos, associate at venture capital firm 33East. He stresses the importance of building a self-sustaining ecosystem over the next decade to prevent Cyprus from becoming a back-office hub for foreign companies.

Partsinevelos highlights the rising momentum in sectors such as applied artificial intelligence, DeepTech, PropTech, and hospitality technology in 2026. He points out that early-stage investing is more about the quality and commitment of founders than just numbers, urging entrepreneurs to take risks and treat their startups as full-time ventures.

Despite fragmentation in funding and many accelerator programs, capital tends to find strong startups with convincing teams. While accessing late-stage funding like Series A remains difficult locally, it aligns with broader European trends. Partsinevelos also compares Cyprus with successful Central and Eastern European tech scenes, advocating for increased private capital and cultural shifts toward risk-taking and scaling globally.