Silicon Valley based accelerator launches in Cyprus to support 60 startups

Cyprus is preparing to accelerate its startup ecosystem with the launch of the Plug and Play accelerator programme, a three-year initiative designed to support early-stage companies, connect them with global markets and strengthen the island’s position as a regional innovation hub.

The programme was presented during the official launch event by Alfredo Gomez of Plug and Play and Theodoros Loukaidis, director general of the Research and Innovation Foundation (RIF). It brings together government institutions, international partners and private sector companies in an effort to scale the country’s technology ecosystem and create new economic opportunities.

According to the organisers, the accelerator will run six programmes over the next three years, each lasting three months and hosted in Limassol. The initiative aims to support 60 startups in total and generate more than 500 jobs through the companies that participate.

The project is backed by the Research and Innovation Foundation, the Deputy Ministry of Research, Innovation and Digital Policy and a group of corporate partners including ASBIS, Mastercard, Tototheo Global and Ecommbx. The collaboration reflects a broader effort to strengthen the infrastructure supporting startups in Cyprus while linking the ecosystem to global networks of investors and corporations.

Presenting the programme, Loukaidis said the initiative builds on the momentum that the local startup ecosystem has developed over the past decade. “I think it’s very important to mention that this ecosystem, if we go back about 10 years ago, there was very little we would have talked about,” he said. “But over the years it has gained significant momentum.”

According to him, the growth of startups has been accompanied by the development of support structures including incubators, accelerators, venture capital funds and angel investors.

“We have seen not just the startups and scale-ups, but also the support structures around them,” Loukaidis said. “The incubators, the accelerators and even more importantly the investors.” 

He added that government policies and incentives have also played a key role in attracting talent and investment to the ecosystem.

Six acceleration cycles planned

The accelerator programme is structured around six separate cohorts that will run over a three-year period. Each programme cycle will last three months and will take place in person in Limassol.

During that time startups will receive mentoring, training and access to international networks designed to help them validate their products, refine their business models and scale internationally.

Gomez said the initiative is designed to complement the work already taking place in Cyprus rather than compete with it.

“We don’t aim to come and disrupt or fight with anyone,” he said. “We aim to come and accelerate everything that’s already there.” 

The programme will involve a wide network of international experts. More than 120 mentors from regions including the United States, the Middle East and Asia Pacific are expected to work with startups participating in the accelerator.

These mentors will support founders in areas such as product development, go-to-market strategies and international expansion.

“We have already planned for more than 120 mentors to come and participate internationally with the startups in the island,” Gomez said. 

“Mentors from across the world will help with go-to-market strategies and expansion plans.”

Equity-free programme for startups

One of the key features of the programme is that it will be equity-free for participating startups.

This means that companies accepted into the accelerator will not have to give up ownership stakes in exchange for participation.

Instead, the cost of the programme will be covered through a voucher scheme provided by the Research and Innovation Foundation.

Loukaidis explained that the foundation will issue vouchers to startups selected by Plug and Play after its evaluation process.

“As soon as you run your selection process and you let us know which startups have been selected, we will issue a voucher that covers the full cost of providing the services of the programme,” he said. 

The goal is to ensure that startups can access mentoring, networking and support services without financial barriers.

The programme aims to help startups validate their products quickly and reach the market faster.

“We aim to help startups validate their solutions and help them gain their first clients so they can have real market experience,” Gomez said. 

Another objective is to prepare companies for fundraising by helping them become investment-ready.

Part of the strategy involves connecting startups with international venture capital funds and corporate partners through Plug and Play’s global network.

Focus on Cyprus-based startups

A key requirement of the accelerator is that participating companies must be incorporated in Cyprus.

While the programme will welcome startups from across Europe and beyond, companies must establish a legal presence on the island in order to participate.

The aim is to ensure that the economic benefits of the programme remain in Cyprus and contribute to local job creation.

“We do have a focus on Cyprus-based startups,” Gomez said. “The startup has to be incorporated in Cyprus because we want to make sure the companies create jobs here.”

This requirement also reflects the broader goal of strengthening the local startup ecosystem and encouraging companies to grow from Cyprus rather than relocate elsewhere.

At the same time, the programme will remain strongly international in its outlook.

Participating startups will gain access to Plug and Play’s network of more than 550 corporate partners around the world.

This network includes major global companies that collaborate with startups through innovation partnerships and pilot projects.

“Our objective is to help startups grow,” Gomez said. “That growth can happen in any market.” 

Sector focus to evolve over time

The first accelerator cohort will be open to startups from any industry.

According to the organisers, this approach will allow them to better understand the strengths of the local ecosystem and identify the most promising sectors.

“We decided to start with a programme that is topic agnostic,” Gomez said. “We want to understand what is already in the ecosystem.” 

Future programmes will focus on specific industries where Cyprus has competitive advantages.

Among the sectors expected to be included are fintech and regtech, gaming, social and leisure technologies, as well as shipping and energy.

These sectors reflect areas where the country already has strong industry clusters or strategic economic interests.

Additional thematic programmes may be developed as the accelerator evolves.

International mentors and community engagement

Mentorship will play a central role in the programme.

Organisers plan to bring international experts to Cyprus for intensive mentoring sessions during the accelerator cycles.

At least six weeks of the programme will involve in-person mentoring and workshops.

During this time, several mentors will travel to Cyprus to work directly with founders.

The programme will also include community events aimed at strengthening the broader innovation ecosystem and give more networking opportunities to all startups. 

These events will allow entrepreneurs, investors and industry professionals to connect with mentors and international experts visiting the island.

“We want to be part of the community,” Gomez said. “We want to help make the ecosystem stronger.” 

Organisers also plan to maintain long-term relationships with startups that complete the accelerator.

Graduates will remain connected to the mentor network and will be able to participate in future ecosystem events.

Building a long-term innovation platform

Both Gomez and Loukaidis emphasised that the initiative is designed as a long-term investment in the country’s innovation ecosystem.

The three-year programme is only the first phase of a broader collaboration between Plug and Play and Cyprus.

“This is not a three-year thing,” Gómez said. “We have a long-term bet in Cyprus. We are here to stay.” 

Loukaidis said the partnership reflects the government’s strategy to strengthen the pathway from research and innovation to commercial success.

The Research and Innovation Foundation has been working to expand funding programmes and support mechanisms for startups in recent years.

The accelerator is expected to complement those efforts by helping companies scale internationally and attract foreign investment.

One of the main objectives is to help startups move from early experimentation to global market expansion.

The organisers believe this step is critical for the long-term sustainability of the ecosystem.

Applications open for first cohort

Applications for the first accelerator cohort opened during the launch event.

The selection process will run for six weeks, during which startups can apply through the Plug and Play platform.

Candidates will be evaluated by a panel of international venture capital investors and industry experts.

The first accelerator programme is scheduled to begin in early June.

It will run through the summer and conclude in early autumn with a demo and expo event where participating startups will present their progress to investors and corporate partners.

Organisers hope the initiative will strengthen Cyprus’ position as a regional hub for technology entrepreneurship.

With its strategic location between Europe, the Middle East and Africa, the island is increasingly positioning itself as a gateway for startups seeking access to global markets.

For Plug and Play, the Cyprus accelerator represents another step in expanding its global innovation network.

For Cyprus, it is part of a broader strategy to transform the economy through technology, entrepreneurship and international collaboration.