“Cyprus can be a continuous source of world-class business ideas”

Andreas Panayi, Invest Advisory Committee Members, KINISIS Ventures Fund I, talks about the investors’ role in helping startups get off the ground and thrive.

Tell us about your investment philosophy and the types of startups and industries you typically invest in.

We look at several variables when we decide to initiate discussions with prospective portfolio companies. These variables become more focused, specific and demanding as we dig deeper to evaluate if the KV Fund is the right fit for a potential investment. Some of these variables are intangible, such as team attitude and dynamics, or very practical, such as subject matter expertise and relevant experience. We also have our own checklist of variables that are influenced by our US experience and expectations, such as the ability to shift and pivot, compete and scale, differentiate, and get “scrappy” when you need to, especially in large, demanding and unforgiving markets. Of course, we review business plans and dissect financial models but, in essence, we look for teams with a core idea that can disrupt sectors and industries in the most competitive and crowded of economies such as the USA. We don’t have any strong focus on specific industries or types of startup – what we look for is the idea, the team that will make it a valuable company, our vision as to how we will help, and the introductions we will make once they are ready to play ball in the major leagues.

What do you believe are the most important qualities for startups seeking funding?

In no specific order: clarity of vision, confidence and passion, self-awareness, subject matter knowledge, listening skills, and leadership abilities. All these qualities will be tested at one point or another during the funding process. In fact, they are tested not only through the funding period but through the entire life of an entrepreneur.

What value do you believe you bring to your portfolio companies beyond just capital?

Our core and advisory teams are made up of hands-on, experienced international businesspeople, operating between Cyprus and the USA. Some of us bring the practical experience of building, creating value and exiting companies, which is an invaluable benefit to our portfolio companies. Others bring access to professional expertise, such as finance and legal. All of us bring additional experiences and a vast business network in the USA that has evolved over our team’s combined 300 years in the USA.

How can your firm contribute to the overall health and growth of the Cyprus startup ecosystem?

Only time will reveal what our contribution has been to the local startup ecosystem. What we’ve set out to do is show to the unconverted that Cyprus can be a continuous source of world-class business ideas, generated and materialised by qualified people that can be trusted with private capital to grow their ideas into internationally competitive businesses. We also hope to stimulate more involvement and injection of capital from the private sector into innovation, technology and internationally disruptive entrepreneurialism in areas that are reducing dependency on legacy sectors of the economy.

In terms of taking the Cyprus startup ecosystem to the next level, what changes would you like to see taking place?

There are a couple of thought-starters: Universities and academia need to evolve with the times and let go of their grip on the IP and creative ideas generated by their innovation researchers so that investors care enough to explore investing in teams that want to spin out. Centres of Excellence – all 7 or 8 of them… I’ve lost count – and the Government need to recognise the multiple redundancies they create. Every new Centre being launched further dilutes an already under-resourced, small ecosystem. How many Centres do we need to launch before we realise the crossover of mandates and resources? Let’s focus on fixing, improving and properly leveraging what we already have. Also, the entire startup ecosystem has become dependent – addicted, dare I say it – on government grants, which has created a certain paralysis and lack of urgency when it comes to commercialising startups’ products and services. This dependency threatens to side-track a whole generation of entrepreneurs unless private, market-driven capital is introduced to create the paradigm shift that the local ecosystem requires.

Some of KINISIS Ventures Fund I’s major startup investments:

⋅ Threedium

⋅ ASCANIO

⋅ EMBIO Diagnostics

⋅ Promed Bioscience

⋅ Heroes Made

This interview first appeared in the April edition of GOLD magazine. Click here to view it.