KV Fund: The First Tech And Innovation Venture Capital Fund With A Focus On Cypriot Companies
Business acceleration firm Kinisis Ventures Ltd has recently joined forces with independent fund management company AIFCAP Managers to launch Kinisis Ventures Fund I (“KV Fund”), the first-of-its-kind Cyprus-focused Tech and Innovation Capital Fund. KV Fund is a sub-fund of KV Kinisis Ventures Fund RAIF VCIC PLC which is registered with the Cyprus Securities and Exchange Commission (CySEC) and its primary objective is to fuel innovative local projects that have the potential to compete, scale and expand in the USA as well as other global markets. KV Fund will launch with an existing portfolio of seven companies with strong traction and significant potential for USA and international market growth.
Bridging the finance gap
There are several key factors that help drive the evolution of innovation and entrepreneurial ecosystems. These include creative ideas capable of growing into concrete concepts, grants and resources for research and development, as well as supportive government policies. Cyprus has made significant strides in all these areas over the past few years. However, the missing component that is the main driver for pushing the innovation engine to its next phase is access to fully Cyprus-focused private and institutional seed and growth capital. The KV Fund aims to bridge this gap by delivering immediate benefits to the Cypriot innovation and entrepreneurial ecosystem.
What value will the KV Fund bring to the ecosystem?
First and foremost, the KV Fund can provide undercapitalized start-ups in Cyprus with the seed and growth capital they need to escape the so-called ‘death valley,’ which refers to the difficult period start-ups face after they’ve launched, before they begin bringing in material revenue.
In this perilous stage, it is critical to have an experienced team on your side, which can actively provide hands-on support and guidance. Beyond providing monetary capital, the KV Fund will draw from its own team’s extensive experience in the USA and other international business networks, as well as its market know-how, to provide the strategic guidance, go-to-market optimization and other insights that help start-ups bypass the dreaded death-valley and head straight towards a path of commercialization and growth.
The KV Fund also aims to provide benefits to private and institutional Cypriot investors by introducing an entirely new class of alternative investment opportunities in the ever-growing and globally relevant areas of technology and innovation. These two key areas are becoming critical growth drivers across many global economies and are an ideal investment opportunity for investors seeking to make a strategic move in diversifying their portfolio. As an added bonus, by investing in technology and innovation, Cypriot investors could potentially leverage the local government’s ‘innovation certificate’ tax benefits.
Long-term impact
The aim with the creation of the KV Fund is to deliver homegrown (and home funded) success stories, so as to become the catalyst for the launch of other similar funds and investment vehicles. This will give the Cypriot innovation and entrepreneurial community the boost it needs to survive death valleys, and unlock even more disruptive, innovative potential across the island, thus fostering a culture of innovation and long-term focus. As a result, more domestic as well as international investment capital will be drawn to the island, helping to create even more international success stories and lead to a major, sustainable growth sector that is vital to the island’s economy.
KV Fund is therefore looking towards a future where the next generation of Cypriot innovators will have both the means and the confidence to make their entrepreneurial forays towards forward-leaning innovation.
