The Financing Agreement for the assignment of the Management of the Cyprus Capital Financing Fund to the European Investment Fund (EIB) was signed by the Minister of Finance, Konstantinos Petridis.
An announcement from the Ministry of Finance states that today's signing marks the successful conclusion of many months of negotiations between the Ministry of Finance and the EIB as well as the start of the selection process for the Fund Manager from the market, which is expected to be completed by the end of the year.
The EIF is a leading investor in the European venture capital market and focuses on building and supporting a sustainable business participation ecosystem that supports innovation and entrepreneurship across Europe.
To achieve this goal, it adds, plans and implements actions and financial tools. In this context, it has undertaken the management of respective investment funds in many European countries and has to demonstrate significant know-how in emerging markets such as Cyprus.
The Cyprus Equity Fund will invest mainly in start-up and innovative Cypriot companies, thus addressing the funding gaps identified in the Cypriot high-risk financing market. The Financing Agreement provides for a state contribution to the Fund of € 30m, an amount that will be supplemented by private funds.
The assignment of the management of the selection process of the Fund Manager and the monitoring of the operation of the Fund by the EIB, ensures as much as possible the successful development and operation of the Fund towards the objectives set in the Government's investment strategy.
The project is funded for the most part by the Cyprus Recovery and Sustainability Plan (Cyprus - Tomorrow) with additional funding from the Jeremie Initiative re-entries.
It is noted that an online seminar will be held on May 4, for the presentation of this Fund.
Source: KYPE