Kinisis Ventures, the first CySEC-registered Venture Capital Fund focusing primarily on Cypriot start-ups, entered the Cypriot innovation ecosystem in 2018 as a business acceleration and private investment firm. Leveraging their extensive experience and networks in the USA, KV brought a unique perspective and strategic value to their portfolio companies.

Andreas Panayi, an entrepreneur with over 35 years of experience, conceptualized and co-founded Kinisis Ventures to create growth opportunities for Cypriot innovation companies seeking access to USA markets and business networks.

In this interview, Andreas shares his experience in fostering Cypriot innovation through Kinisis Ventures and discusses the Fund’s approach to identifying potential start-ups and the specific sectors the Fund is currently focusing on. Additionally, he sheds light on how Kinisis Ventures facilitates cross-border collaboration and investment between Cyprus and the USA, as well as the challenges and opportunities encountered in this process. Furthermore, Mr. Panayi provides valuable advice to Cypriot entrepreneurs and start-ups looking to scale their businesses internationally, particularly in the USA market.

Actually, our focus is to sort through Cypriot ideas, concepts, teams and dreams to find what can potentially be a great innovation with viable global commercial applications. We work very closely with those that join our portfolio and we apply our experiences and business networks in Cyprus and abroad to help create sustainable competitive businesses. Our aim is to inspire and encourage aspiring innovators by collaborating with individuals who can serve as a source of inspiration. We welcome entrepreneurs from any industry or sector. While studying our portfolio companies, you will notice several recurring themes. We are particularly drawn to globally disruptive ideas that incorporate innovative technological elements. However, what truly captivates us is the presence of individuals and teams who exhibit a strong work ethic, passion, resilience, and collaborative spirit. With nearly four years of immersion in the Cypriot ecosystem, we are well-connected and attuned to the latest developments. We regularly engage with numerous individuals, review countless pitch decks from both Cyprus and beyond, and proudly boast a remarkable portfolio featuring the most accomplished and well-connected entrepreneurs on the island. Rest assured that if there is a promising team with a great idea, we will either discover them or they will find us.

Indeed, a big part of our mandate and critical focus is leveraging our USA expertise, experience and network to establish sustainable cross-border business values. The one thing that is very different compared to others, is that we have a focused strategy and clear vision and we know intimately both markets and cultures. Even more importantly, we pick portfolio companies using specific USA selection criteria, a strategic choice that increases the probability of delivering measurable results in order to validate our claims.

Only time will reveal what impact we and our portfolio companies have made to Cyprus economically and/or socially. What we’ve set out to do is show to the unconverted people, that Cyprus can be a continuous source of world-class business ideas, generated and materialised by qualified people that can be trusted with private capital to grow their ideas into internationally competitive businesses. What we also hope that we can continue to do is to stimulate more involvement and injection of capital from the private sector into innovation, technology and internationally disruptive entrepreneurialism in areas that are reducing the dependency on legacy sectors of the economy. If we can help add more examples of globally successful CY companies, maybe foreign investors will look to us as a true source of investment in innovation.

Each sector, industry and every business idea has so many different factors and variables to consider before even thinking of expanding in other international markets, especially the USA. I will mention a few for thought-starters, but I will reference one thing they should not do: “don’t shoot and aim after”! That is something we perfected in Cyprus, mainly because of the lack of respect and appreciation for focus, strategy and vision. But, that is an entirely separate and long discussion. If someone’s business plan calls for expansion internationally, including the USA, then he/she should make sure to:

1. Do the appropriate research. And by that, I mean to figure out a way to explore methods for acquiring real-time intelligence directly from the source, complementing the information obtained through Google searches, market reports, or "discussions" with ChatGPT.

2. Know exactly what the differentiated value is, how to show it, which audience and what market(s) to target and why.

3. Have a plan and resources that support some heavy fighting and get you through tough competition.

4. Not leave the island without “cutting his/her teeth” in Cyprus' market. The island is the best test-kitchen an innovator can wish for.  Make mistakes in Cyprus and be sure everything works right because in bigger markets there are no second chances.

Our approach doesn't prioritize specific industries or types of start-ups. Instead, we seek out ideas and teams with the potential to become valuable companies. Our focus lies in envisioning how we can assist them and making introductions when they're prepared to thrive in the major leagues.

We use a number of criteria and variables and we look at multiple combined and individual factors. We rely on a medley of experience, intuition, financial models, people - midframes etc. Some of these criteria are intangible, such as team attitude and dynamics, or very practical, such as subject matter expertise and relevant experience. We also have our own checklist of variables that are influenced by our US experience and expectations, such as the ability to shift and pivot, compete and scale, differentiate and get “scrappy” when you need to, especially in large, demanding and unforgiving markets. Of course, we review business plans and dissect financial models, but in essence we are looking for “teams” with a core idea that can disrupt sectors and industries in the most competitive and crowded economy in the world, the US one.

Well, let’s define success first. In the VC or investment world, most of the time, success stories are defined as events, such as an exit.  Our fund is not even a year young, but if you take a look at our companies and their teams, there are many examples of critical successes and incredible momentums. A couple of them have already significant commercial activities in international markets including the USA. A good number of them generate revenues -not just government grants- from what was just an idea on a piece of paper, not too long ago. A few more are working to finalize their IP registrations and secure their internationally required certificates and validations to commercialize their disruptive innovations. When a young startup company consistently meets and exceeds their plans, on their way to become a globally viable, sustainable and competitive international company, we consider that to be a successful progress towards a bigger target.

What: Kinisis Ventures

Where: New York, USA 

More Info: kinisisventures.com

Who: Mr. Panayi is a serial entrepreneur and throughout his -more than 35 years- career in the USA, he has founded, developed, operated and sold companies in the professional services and information technologies area. Panayi conceptualized, co-founded and launched Kinisis Ventures Limited, a business acceleration company with a specific mission to create growth opportunities for Cypriot innovation companies that previously were unable to benefit from strategic access to USA markets and business networks. Panayi, is also a founding principal and Investment Advisory Committee member of the Kinisis Ventures Fund. Panayi co-founded TKI, a technology application development company with offices in the USA and India. He serves as a board member at TK Partners, a USA technology holdings company and teaches entrepreneurialism & new venture development classes as an adjunct professor. Prior to focusing his career being an entrepreneur, Panayi worked for a number of NY Madison Avenue advertising agencies and spent time at a New York based technology incubator- early stage investment fund.