The Financing Agreement for the delegation of the management of the Cyprus Capital Financing Fund to the European Investment Fund (EIF) was signed today, 14 April 2022, by the Minister of Finance Mr.Constantinos Petrides. Today's signature marks the successful conclusion of months of negotiations between the Ministry of Finance and the EIB and the start of the market selection process for the Fund Manager, which is expected to be completed by the end of the year.
The EIB is a leading investor in the European venture capital market and is focused on creating and supporting a sustainable venture capital ecosystem that supports innovation and entrepreneurship across Europe. To achieve this, it designs and implements actions and financial instruments. In this context, it has managed similar investment funds in several European countries and has significant expertise in emerging markets such as Cyprus.
The Cyprus Equity Fund will invest mainly in start-up and innovative Cypriot companies, thus addressing the financing gaps identified in the Cypriot high risk financing market. The Funding Agreement provides for a state contribution to the Fund of €30 million, which will be complemented by private capital.
The entrustment of the management of the Fund Manager selection process and the monitoring of the Fund's operation by the EIB ensures to the maximum extent possible the successful development and operation of the Fund towards the objectives set out in the Government's investment strategy for the Fund.
