33East launches with €26 million to back Cyprus startups and drive global expansion

“The official launch of 33East brings together founders, investors, and key leaders who share our vision for Cyprus as a hive for innovation and entrepreneurship,” said Yiannis Eftychiou, one of the two co-founders of 33East.

In 2022, Cyprus' Finance Ministry and the European Investment Fund (EIF) sought a fund manager for the €27 million Cyprus Equity Fund (CEF), which aims to invest in local startups. 33East, co-founded by Demetrios Zoppos and Eftychiou, won the bid among 10 applicants, committing to raising an additional €10.5 million before deploying capital.

“Hosted at the Nicosia Municipality Town Hall in collaboration with the Bank of Cyprus, the official launch event will unveil 33East’s inaugural venture fund and recognise everyone who has contributed to this milestone for Cyprus' startup ecosystem,” Eftychiou said. Attendees will include senior representatives from the European Investment Bank (EIB), the EIF, the Government of Cyprus, and key figures from the science, business and startup communities.

Guests can expect speeches from the EIB’s Vice-President Kyriacos Kakouris and government officials from the Finance Ministry. There will also be an opportunity to hear the fund’s founding story from Eftychiou and Zoppos. “With networking opportunities and insights from leading voices in the ecosystem, the launch signals a new era of support for Cypriot founders looking to scale globally,” he added.

Who’s behind the fund?

While 33East completed its first closing at €26 million, Eftychiou explained that it exceeded the minimum target agreed with the EIF. This enables the fund to begin operations and make investments. He also noted that the fund is on track to reach €37.5 million by mobilising an additional €8 million from the Cyprus Equity Fund matched by private investors.

“We are grateful for the support of the Bank of Cyprus as a founding investor in 33East, with a commitment of €2 million,” he added. Alongside the Bank of Cyprus, the fund has attracted investors who share its ambition to transform Cyprus into a centre of innovation and entrepreneurship, including family offices and individuals.

Targeting startups with global ambition

Eftychiou noted that 33East is already engaging with founders and expects to invest in one to two startups per quarter. “We back ambitious founders targeting large markets, without restricting ourselves to a specific vertical or theme,” he mentioned. Nonetheless, the fund sees B2B as a significant opportunity, particularly in fintech, enterprise software and various AI applications. “While we remain open-minded, a clear intention to scale internationally is essential from the outset,” he stressed.

The vision behind 33East is to contribute to the collective ambition of building Cyprus into a hub for innovation and entrepreneurship by helping Cypriot startups make an international impact while leveraging the talent and resources available on the island. “We also aim to attract diaspora Cypriots and others with ties to Cyprus, strengthening their role in shaping the country’s future economic model,” Eftychiou said.