Pangratios Vanezis: "We want to be the change we wish to see by de-risking startup investments"

"We want to be the change we wish to see by de-risking startup investments, educating founders on financial and operational best practices, and driving a more mature and resilient startup ecosystem. SIL is not just a response to market needs – it is a catalyst for meaningful, lasting change," Pangratios Vanezis, Board Member, Head of Enterprise and Startups and Head of SIL, KPMG in Cyprus reveals.

He was speaking to CBN about the reasons that prompted the creation of the KPMG Startup Innovation Lab (SIL) and its mission. Among other things, Vanezis also shared his view of Cyprus' startup ecosystem and the importance of startups to the local economy.

Can you please explain what the KPMG Startup Innovation Lab (SIL) is and how it will support startups?

The KPMG Startup Innovation Lab (SIL) is an accelerator designed to bridge the gap between startups and investors, elevating their investment readiness. Unlike traditional accelerators, SIL focuses on both preparing startups for fundraising and ensuring investors have access to well-structured, scalable businesses.

We carefully curate startups based on their potential and business model. Through mentorship, workshops, and strategic partnerships, we guide them in financial planning, market entry, and investment readiness.

SIL also helps startups foster collaborate with larger companies, leveraging KPMG’s extensive network and expertise in finance, financial engineering, tax, legal and advisory services. By aligning startup development and investor needs, we create an ecosystem where both founders and investors maximise their chances of success, leading to impactful innovation.

What prompted KPMG to create this additional service?

The decision to launch SIL Accelerator stems from KPMG’s commitment to empowering the wider entrepreneurial ecosystem and actively bridging the challenges faced by startups when seeking investment. While many early-stage businesses have great ideas, they struggle to structure their companies in a way that attracts investors. Rather than simply observing these challenges, we chose to act. SIL was created to provide hands-on support in investment readiness, fundraising strategies, and business growth, ensuring startups are not just prepared but positioned for success.

At the same time, Cyprus has a growing interest in venture funding and innovation, but structured investor networks and resources are still limited. We want to be the change we wish to see by de-risking startup investments, educating founders on financial and operational best practices, and driving a more mature and resilient startup ecosystem. SIL is not just a response to market needs – it is a catalyst for meaningful, lasting change.

How important do you believe startups are in the broader economy?

Startups play a critical role in driving economic growth, job creation, innovation, and industry transformation. They challenge conventional business models, introduce disruptive technologies, and create new market opportunities. As economies worldwide shift toward digitalisation and sustainability, startups play a key role in solving challenges and attracting investment and talent.

At the same time, startups promote competition as they drive larger companies to innovate and adapt, strengthening the industry as a whole. A strong startup ecosystem improves a country’s global competitiveness and diversifies its economy.

For smaller markets like Cyprus, supporting startups is especially crucial for positioning the country as a hub for tech, fintech, and sustainability-driven enterprises.

How would you assess Cyprus’ startup ecosystem? What do you believe are its strengths, and weaknesses, and how can the latter be addressed?

Cyprus’ startup ecosystem has grown significantly in recent years, driven by an increase in entrepreneurial activity, government incentives, and a stronger presence of investors and innovation hubs. The country offers several key advantages, including:

• Strategic Location & EU Market Access – Cyprus serves as a bridge between Europe, the Middle East, and North Africa, making it ideal for startups looking to expand.
• Strong Talent Pool – A highly educated workforce, especially in tech, finance and engineering, provides skilled professionals.
• Business-Friendly Environment – The country has a favourable tax regime, startup-friendly incentives, and a regulatory framework that supports innovation.

However, there are challenges that need to be addressed:

• Limited Access to Funding – While angel investing and VC activity are growing, Cyprus lags behind larger startup hubs. Expanding investment networks and attracting international investors can help.
• Lack of Scale & Market Size – The local market is limited, so startups must think globally from the start and receive support for international expansion.
• Corporate & Government Engagement – More engagement from large companies and public – private partnerships is needed to foster early stage collaboration.
• Cultural & Risk-Taking Mindset – While entrepreneurship is gaining momentum, many still see it as too risky. More success stories, mentorship and education can encourage founders to take the leap.

By strengthening investment opportunities, supporting international growth, and building better support systems, Cyprus can position itself as a key innovation hub. SIL aims to bridge these gaps and help startups succeed in the global market.