10 Mar Crowdfunding in Greece and Cyprus requires the development of the local investment community
According to Louis Loizou partner of Loizou & Co, the success of crowdfunding presupposes the development of the local investment community
- The connection of the Cypriot ecosystem of start-ups with Greece is an important ingredient
The Cyprus Chamber of Commerce and Industry (CCCI), in collaboration with Loizou & Co and MAP Innovation, organized a series of three webinars on the development and implementation of a successful participatory financing campaign, entitled “Crowdfunding Campaign: Completion & Next Steps”.
Crowdfunding is a way of raising funds to finance projects and businesses. It provides the opportunity to raise money from the “crowd” through an online platform. This is an innovative way to raise funding for new projects, businesses or ideas.
Louis Loizou, partner at Loizou & Co, mentioned, among other things, the successful development of crowdfunding as a means of strengthening the financing of Cypriot start-ups and small and medium-sized enterprises:
“Apart from attracting foreign investors that the respective Governments of Cyprus have always had high on the agenda, it is important not to overlook the local investors and players of the Cypriot capital markets. Let tax incentives be given to both natural and legal persons operating in Cyprus, in order to increase investments in start-ups and small and medium-sized enterprises, through reactivation of the local investment community.
In the United Kingdom, for example, similar programs, such as the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme, have been running with great success for several years, which Cyprus could adopt to help start-ups and small and medium-sized enterprises to raise capital from the local market.”
“In addition, it is very important that the ecosystem of start-up companies in Cyprus be connected to the corresponding Greek one, so that it can be part of it and develop further. Greece and Cyprus, with their common culture and language, could well be a common local market for investors for start-ups located both in Greece and in Cyprus. Therefore, it is necessary to develop alternative forms of funding in Cyprus and connect the Cypriot ecosystem of start-ups with the Greek ecosystem.”