Reflect Festival, Cyprus’ flagship tech and start-up event, returned to Limassol on 30 May with over 8,000 entrepreneurs, investors, policymakers, start-ups, and enthusiasts with a passion for innovation and tech in attendance.
Cyprus has emerged as a thriving tech hub over the past decade, attracting numerous technology companies due to its favourable infrastructure and regulatory environment. The tech sector in Cyprus now employs 30,000 people out of a population of one million and its contribution to GDP stands at around 15%.
Cyprus offers a unique business environment that is conducive to innovation and entrepreneurship. Its strategic location at the crossroads of Europe, Africa, and Asia makes it an ideal gateway for companies looking to expand into European markets.
The country’s attractive business climate, accessible regulatory framework, and quick turnaround times present invaluable opportunities for start-ups to test the waters before fully committing to market entry in the European Union.
Cyprus’s small economy and supportive business environment provide a ‘sandbox’ opportunity for companies aiming to expand to Europe. Being part of the EU, Cyprus allows businesses to experience first-hand the opportunities and challenges of expanding their market to Europe.
Cyprus’s ‘IP Box’ regime offers one of the most favourable tax environments for intellectual property. The regime applies to patents and software, with royalties taxed at an effective rate of 2.5%. This makes Cyprus an ideal location for companies involved in technological development and innovation. Additionally, Cyprus’s extensive network of double tax treaties ensures that royalties received in Cyprus are subject to minimal or no withholding tax.
For assets that do not qualify for the IP Box regime, Cyprus offers the National Interest Deduction (NID), which allows businesses to deduct a notional interest expense from their taxable income. This can also reduce the effective tax rate to as low as 2.5%, providing significant tax savings for companies with substantial new equity.
This strategic advantage is particularly beneficial for start-ups looking to scale their operations and gain a foothold in the European market. The presence of key stakeholders, such as Invest Cyprus and the Research and Innovation Foundation, ensures that businesses receive the necessary support and resources to thrive.
The two-day Reflect Festival drew attendees from 70 countries and attracted around 1,500 companies. The overall number of speakers exceeded 270 and the expo featured over 150 companies, with both, Cypriot and international start-ups, scale-ups and tech players showcasing their innovative products and services.
The line-up included Elizabeth Yin, the VC legend from Hustle Fund, Tony Jamous, the man behind Oyster – a company that reached unicorn status in 2022, and Vaibhav Kapoor, who co-founded the Indian healthcare unicorn Pristyn Healthcare.
Also supporting the festival were government representatives from India, Slovakia, the US, the UK, Italy, Germany, the Czech Republic, Greece, Netherlands, Sweden, Egypt, UAE, Hungary, Romania, Austria and Japan, highlighting the importance of strategic collaboration and government support in promoting the growth of the start-up ecosystem.
The festival also featured the final of the highly anticipated second edition of the ReflectX start-up programme, which provides a platform to propel seed to series-A start-ups to new heights by providing unparalleled access, connections and visibility within the industry.
The festival featured ReflectX, the largest start-up competition in Cyprus. Offering EMEA region start-ups an opportunity to pitch their ideas and products to a curated audience of investors, entrepreneurs and ecosystem partners from Cyprus, the programme attracted more than 400 start-ups.
Applicants must showcase their product’s functionality, customer base, revenue generation, and potential for future growth. The programme allows them to gauge the skill and proficiency of their regional peers, providing valuable market intelligence. This exposure is crucial for start-ups aiming to scale operations and enter new markets.
The programme culminated in a pitch competition where 36 semi-finalists vied for the attention of 250 investors. Unfolding over two days, the winner of the €15,000 cash prize was Playbook, a Bahrain-based learning and mentoring platform that aims to transform leadership and embracing diversity by elevating the role of women in reshaping entrepreneurship and technology worldwide.
“Within Playbook, we champion the profound impact of collaboration, innovation, and diversity in catalysing global change. Our recent accolade as the number one start-up further solidifies our dedication to cultivating an inclusive entrepreneurial ecosystem where every individual can flourish,” said Playbook Founder and CEO Wafa al Obaidat.
“Competitions like these have a huge impact. They bring VCs and start-ups together, they create a plethora of opportunities for both, and on top of that, all these amazing, talented people from all around the world spend time here, in Cyprus,” said Dusan Duffek, co-founder of Reflect Festival.
