With 16 funds actively targeting startups in Greece, managing European, governmental, and private funds, Greece offers supportive investment mechanisms playing pivotal roles in nurturing entrepreneurial growth. Greece has a diverse ecosystem that attracts both local and international investors, involving angel investors, family offices, and international funds creates a dynamic and flexible financial environment. The number of investors as well as the percentage of foreign funds participating in rounds is growing year by year.
Greece has attracted international household names like Google, Microsoft, Pfizer,and Cisco, constituting the Greek economy more extroverted. As of October 2024, Greece has two companies that have achieved and maintained unicorn status – Viva Wallet, valued at $2.055 billion, and PeopleCert, valued at $1.9 billion. And in 2024, 3 fintech obtained significant investment – Plu and Simple series A investment, with the Insurtech company Hellas Direct series B investment.
Established in the early 2000s, TANEO (New Economy Development Fund) was Greek Sovereignty’s first fund-of-funds, managing a total of €150 million. Its main objective was to stimulate the then dormant VC market by co-investing in early-stage startups and small and medium enterprises (SMEs) across a range of sectors. TANEO played a pioneering role in proving that Greece could support a VC ecosystem, it was instrumental in establishing the country’s first professional investment management teams and was a pioneer in investments with a sizable positive impact.
By July 2024, Greece proudly has two unicorns, highlighting its vibrant startup ecosystem. Ke. Beside attracting international investors, the Greek government has also supported startups through initiatives like the EquiFund and the Elevate Greece registry, providing essential funding and incentives.
In the inclusivity angle, 25% of financed Greek startups have a woman as a co-founder, which means that there is an effort from investors to also support startups led by women. However, more efforts need to be made both in including women as co-founders and as investors.
Due to existing facilities, the number of angel investors is growing, in 2024, 3 of 10 startups have angel investors. Currently, angel investors receive a 50% deduction on the capital they contribute to startups registered in the National Startup Registry, with a cap of 300,000 euros. Under the new framework, this cap will triple, reaching 900,000 euros. Similar incentive programs can be applied in different CEE countries to facilitate investments from angel investors, and not only VC.
Also, starting January 1, 2025, a residence permit in the form of a Golden Visa will be granted for investments of 250,000 euros in startup companies that are members of the National Startup Registry (Elevate Greece).
- Strategic Network for Greek Diaspora Innovators in Fintech
Diaspora networks, communities of people who have migrated from their home countries, play a significant role in fostering the development and internationalization of fintech. Diaspora networks often maintain strong ties to their home countries, enabling them to facilitate financial transactions between migrants and their families back home. This has led to the emergence of a number of diaspora-focused fintech companies that provide remittance services, online banking, and other financial solutions tailored to the specific needs of migrant communities.
Diaspora networks serve as valuable knowledge hubs for fintech companies. Migrants often bring with them expertise and knowledge from their home countries that can be leveraged by fintech startups in their host countries. This exchange of ideas and best practices accelerates innovation and helps fintech companies address the unique challenges and opportunities of emerging markets.
Diaspora communities can also be a source of investment for fintech companies. Successful migrants often seek opportunities to invest in ventures in their home countries, and many are eager to support fintech startups that leverage technology to solve local problems. This influx of capital can provide critical funding for fintech companies looking to expand internationally.
The Greek diaspora, with its vast presence across the globe, has played a particularly active role in the development and internationalization of fintech.
- Remittance Services: Greek diaspora networks have been instrumental in the growth of remittance services to Greece. Companies like MoneyGram, Western Union, and Ria Money Transfer have leveraged the connections within the diaspora to provide convenient and affordable remittance options to Greek migrants.
- Online Banking: Diaspora-focused fintech companies like N26 and Revolut have gained significant traction among Greek migrants seeking alternative banking solutions with low fees and cross-border capabilities.
- Investment: The Greek diaspora has also made significant investments in fintech companies in Greece. Notable examples include the venture capital firm Velocity Partners, founded by Greek-American entrepreneur George Mihalopoulos.
– Implementation:
Identification and Engagement: Diaspora accelerators identify and connect with Greek diaspora innovators in fintech.
Mentorship and Support: Accelerators provide mentorship, networking opportunities, and business development support.
Funding: Funds invest in promising startups led by diaspora innovators.
Event Participation: Events bring together diaspora innovators, investors, and industry experts to foster collaboration and knowledge sharing.
Investor Outreach: Investors collaborate with accelerators to identify and support high-potential diaspora-led startups.
– Examples:
Diaspora Accelerators: Athena Startup, Elevate Greece, DiasporaConnect Greece
Funds: Velocity Partners, Uni.Fund, Endeavor Greece
Events: Fintech Week Greece, Athens Fintech Forum, Thessaloniki Fintech Summit
Investors: Found.ation, Speedinvest, VC4A, Venture Friends
– Outcomes:
The network has successfully identified and engaged a substantial pool of Greek diaspora innovators in the Fintech sector, creating a vibrant online community for them to connect, share ideas, and collaborate.
The mentorship program has provided invaluable guidance and support to diaspora innovators, while workshops and events have facilitated knowledge sharing and skill development. Collaborative research projects have driven innovation and commercialization, leading to the development of promising Fintech solutions.
The network has played a crucial role in fostering international expansion and market access, connecting diaspora innovators with investors and partners abroad. Advocacy efforts have shaped favorable policies and regulations, supporting the growth of the Greek Fintech industry. Strong community-building initiatives have fostered a sense of belonging among diaspora innovators and promoted collaboration.
Access to funding and investment opportunities has enabled the creation of a dynamic Greek Fintech ecosystem. Global outreach and partnerships have extended the network’s reach, fostering knowledge exchange and collaboration on a global scale. According to the 2023 Greek Tech report by Endeavour, the collective investment in diaspora startups is estimated to be approximately $5.7B in 2023.
The network has successfully identified and engaged a substantial pool of Greek diaspora innovators in the Fintech sector, creating a vibrant online community for them to connect, share ideas, and collaborate.
The mentorship program has provided invaluable guidance and support to diaspora innovators, while workshops and events have facilitated knowledge sharing and skill development. Collaborative research projects have driven innovation and commercialization, leading to the development of promising Fintech solutions.
The network has played a crucial role in fostering international expansion and market access, connecting diaspora innovators with investors and partners abroad. Advocacy efforts have shaped favorable policies and regulations, supporting the growth of the Greek Fintech industry. Strong community-building initiatives have fostered a sense of belonging among diaspora innovators and promoted collaboration.
Access to funding and investment opportunities has enabled the creation of a dynamic Greek Fintech ecosystem. Global outreach and partnerships have extended the network’s reach, fostering knowledge exchange and collaboration on a global scale. The network implements a comprehensive mechanism that encompasses underrepresented groups, such as gender minorities, migrants, and others.
– Replication of Greek Diaspora Program in EU and Non-EU Countries:
Inspired by the Greek diaspora program’s resounding success, countries are urged to develop and implement strategic diaspora engagement programs. By adapting these programs to the specific needs of their own diaspora communities.
EU Countries:
● Strong diaspora networks: Many EU countries have significant diaspora communities with close ties to their homelands.
● Economic diversity: EU economies offer a wide range of opportunities for diaspora members to contribute, from high-tech industries to tourism.
● EU mobility: EU citizens enjoy freedom of movement, making it easier for diaspora members to return or relocate within the Union.
Non-EU Countries:
● Diaspora as a bridge: Diaspora communities can serve as bridges between their home countries and non-EU countries, facilitating trade, investment, and cultural exchange.
● Skills and innovation: Diaspora members often bring valuable skills and perspectives gained from living abroad.
● Government support: Non-EU countries can benefit from implementing diaspora programs that align with their national development goals.
- DayOne Programme with Genesis Ventures
DayOne is the gateway to first institutional funding and global expansion. This is a six-week program with Genesis Ventures. The effective implementation of programs like Day One hinges upon structured yet flexible frameworks designed and created based on diverse needs emerging ventures while facilitating collaborative environments conducive innovation growth ultimately driving positive impacts both locally and globally across entrepreneurial ecosystems. The Day One program not only equips startups with vital skills but also opens doors for global expansion by connecting them with international networks of investors and partners. This exposure allows startups to scale beyond local markets efficiently while attracting diverse investment opportunities that can drive growth on a larger scale.
Outcomes:
For Investors:
● Increased ROI through startup selection and support.
● Access to high-potential startups with growth potential.
● Diversified portfolio across sectors and industries.
● Strong network connections with investors and professionals.
For Startups:
● Accelerated growth through tailored support and mentorship.
● Reduced risk through funding, mentorship, and expert guidance.
● Enhanced leadership and team building through community support.
● Access to resources, expertise, and networking opportunities.
● Community support for guidance and potential partnerships.
The Day One programme is an exemplar of inclusivity within the European venture capital industry. It promotes diversity and equity through tailored support for founders from all backgrounds, ensuring equal opportunities for success. Genesis Ventures’ Day One programme exemplifies inclusivity by adhering to transparency, gender equity, minority support, and open access principles. It fosters a diverse and equitable environment, empowering founders from all backgrounds.
The Day One program is characterized by its adaptability to different startup ecosystems. Its core principles of dedicated mentorship, tailored funding, growth acceleration, and community support are applicable across various geographies. The methodology is easily replicable, allowing for its implementation in diverse startup ecosystems. Focused on non-EU countries, it stimulates economic expansion and innovation. By adapting its core principles to local contexts, fostering collaboration, and focusing on economic and sustainability benefits, the program can contribute to the development and success of startup ecosystems worldwide.
