Venture Capital in Greece: Funds and Programs Supporting Innovation

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Table of Contents

1. Introduction to Venture Capital in Greece
2. The Greek Startup Ecosystem
3. Major Venture Capital Funds in Greece
4. Government Initiatives and Support Programs
5. Key Sectors Attracting Venture Capital
6. Challenges and Opportunities for Greek Startups
7. Impact of Venture Capital on the Greek Economy
8. Future Outlook for Venture Capital in Greece
9. Conclusion
10. FAQs

1. Introduction to Venture Capital in Greece

In recent years, Greece has been making significant strides in fostering a vibrant startup ecosystem, with venture capital playing a crucial role in driving innovation and economic growth. Despite the country’s economic challenges, the Greek startup scene has shown remarkable resilience and potential, attracting both domestic and international investors. This comprehensive analysis delves into the current state of venture capital in Greece, exploring the funds, programs, and initiatives that are shaping the future of Greek entrepreneurship.

As we examine the landscape of venture capital in Greece, it’s important to note that this burgeoning ecosystem is not only transforming the country’s economic outlook but also creating new opportunities for investors, including those interested in property for sale greece. The growth of the startup scene is contributing to urban revitalization and increased demand for both commercial and residential real estate in key innovation hubs.

2. The Greek Startup Ecosystem

The Greek startup ecosystem has been evolving rapidly, with Athens emerging as a significant startup hub in Southeastern Europe. The ecosystem is characterized by a mix of local entrepreneurs, international talent, and a growing network of incubators, accelerators, and co-working spaces. Key factors contributing to the growth of this ecosystem include:

• A highly educated workforce with strong technical skills
• Relatively low operating costs compared to other European tech hubs
• Increasing government support for innovation and entrepreneurship
• A strategic geographic location bridging Europe, the Middle East, and North Africa

The Greek startup scene has seen a surge in activity, with the number of startups growing from just a handful in 2010 to over 1,000 in 2021. This growth has been accompanied by an increase in venture capital investments, with total funding reaching €500 million in 2020, a significant jump from €150 million in 2018.

3. Major Venture Capital Funds in Greece

Several venture capital funds have emerged as key players in the Greek startup ecosystem, providing crucial financial support and expertise to early-stage companies. Some of the most prominent funds include:

3.1 Marathon Venture Capital

Marathon Venture Capital is one of the leading early-stage venture capital firms in Greece. Founded in 2017, the fund focuses on seed and Series A investments in technology startups. With a fund size of €32 million, Marathon has invested in notable Greek startups such as Causaly, Netdata, and Hack The Box.

3.2 Venture Friends

Venture Friends is another significant player in the Greek VC landscape. With two funds totaling €70 million, the firm invests in both Greek and international startups across various sectors, including fintech, marketplaces, and SaaS. Some of their notable investments include Blueground, Instashop, and Spotawheel.

3.3 Big Pi Ventures

Big Pi Ventures is a €50 million fund that focuses on technology transfer and deep tech startups. The fund works closely with Greek universities and research institutions to commercialize innovative technologies. Their portfolio includes companies like Landoop, Intelligencia, and Bryq.

3.4 Metavallon VC

Metavallon VC is a €32 million fund that invests in pre-seed and seed-stage technology startups. The fund has a particular focus on supporting first-time founders and has invested in companies such as Augmenta, Syncbnb, and Pushme.

4. Government Initiatives and Support Programs

The Greek government has recognized the importance of fostering innovation and entrepreneurship as a means of economic recovery and growth. Several initiatives and programs have been launched to support the startup ecosystem:

4.1 EquiFund

EquiFund is a €500 million fund-of-funds initiative launched by the European Investment Fund (EIF) in cooperation with the Greek government. The program aims to strengthen the venture capital market in Greece by providing funding to VC firms, which in turn invest in Greek startups across various stages of development.

4.2 Elevate Greece

Elevate Greece is a national startup platform launched by the Ministry of Development and Investments. The initiative aims to map the Greek startup ecosystem, provide resources and support to startups, and connect them with investors and corporate partners.

4.3 JEREMIE Program

The Joint European Resources for Micro to Medium Enterprises (JEREMIE) program, implemented in collaboration with the European Investment Fund, provides financial instruments to support small and medium-sized enterprises (SMEs) in Greece. This includes venture capital funds, loans, and guarantees.

5. Key Sectors Attracting Venture Capital

While Greek startups span a wide range of industries, certain sectors have emerged as particularly attractive to venture capital investors:

• Fintech: With the Greek financial sector undergoing significant transformation, fintech startups are attracting substantial investment.
• Tourism and Hospitality Tech: Given Greece’s strong tourism industry, startups in this sector are finding numerous opportunities for innovation.
• Deep Tech: Leveraging Greece’s strong academic and research base, deep tech startups in areas such as AI, machine learning, and biotechnology are gaining traction.
• Cleantech and Renewable Energy: As Greece focuses on sustainability and green energy, startups in this sector are attracting investor interest.
• E-commerce and Marketplaces: The digital transformation of retail and services has created opportunities for innovative e-commerce and marketplace startups.

6. Challenges and Opportunities for Greek Startups

While the Greek startup ecosystem has made significant progress, it still faces several challenges:

6.1 Challenges

• Limited access to late-stage funding: While early-stage funding has improved, many Greek startups struggle to secure larger, growth-stage investments.
• Brain drain: The economic crisis led to a significant exodus of talent, although this trend is beginning to reverse.
• Bureaucratic hurdles: Despite improvements, startups still face administrative challenges in setting up and operating businesses.
• Limited domestic market: The relatively small size of the Greek market necessitates a focus on international expansion from an early stage.

6.2 Opportunities

Despite these challenges, Greek startups benefit from several unique opportunities:

• Cost-effective talent: Greece offers a pool of highly skilled professionals at competitive salaries compared to other European tech hubs.
• Growing ecosystem support: The increasing number of incubators, accelerators, and networking events is fostering a supportive environment for startups.
• EU funding and programs: Greek startups can leverage various EU-funded programs and initiatives to support their growth.
• Strategic location: Greece’s position as a gateway between Europe, the Middle East, and North Africa offers strategic advantages for startups targeting these markets.

7. Impact of Venture Capital on the Greek Economy

The growth of venture capital in Greece is having a significant impact on the country’s economy:

• Job creation: Startups and scale-ups supported by venture capital are creating high-skilled jobs, helping to address unemployment, particularly among young professionals.
• Economic diversification: The focus on innovation and technology is helping Greece diversify its economy beyond traditional sectors like tourism and shipping.
• Attracting foreign investment: The growing startup ecosystem is attracting international investors and corporations, bringing in foreign capital and expertise.
• Reversing brain drain: The thriving startup scene is encouraging Greek professionals to return home and foreign talent to relocate to Greece.
• Driving innovation: Venture-backed startups are introducing innovative solutions across various sectors, improving productivity and competitiveness.

According to recent data, venture capital-backed companies in Greece have created over 3,000 direct jobs and contributed an estimated €300 million to the country’s GDP in 2020. This impact is expected to grow significantly in the coming years as more startups scale and expand internationally.

8. Future Outlook for Venture Capital in Greece

The future of venture capital in Greece looks promising, with several trends and developments shaping the landscape:

• Increasing fund sizes: As the ecosystem matures, we can expect to see larger VC funds emerging, capable of supporting startups through later stages of growth.
• International partnerships: Greek VCs are increasingly collaborating with international funds, bringing global expertise and networks to local startups.
• Focus on deep tech: With Greece’s strong academic foundations, there’s likely to be a growing emphasis on deep tech investments, particularly in areas like AI, biotech, and cleantech.
• Corporate venture capital: More Greek corporations are expected to launch their own venture arms, fostering innovation and strategic partnerships with startups.
• Government initiatives: Continued government support through programs like EquiFund and regulatory improvements are likely to further boost the VC ecosystem.

Analysts predict that annual venture capital investments in Greek startups could reach €1 billion by 2025, representing a significant increase from current levels. This growth is expected to be driven by a combination of local fund expansion, increased international investor interest, and the maturing of the Greek startup ecosystem.

9. Conclusion

The venture capital landscape in Greece has undergone a remarkable transformation in recent years, playing a crucial role in fostering innovation and driving economic recovery. Despite ongoing challenges, the combination of government support, a growing ecosystem, and increasing international interest is creating a fertile ground for startups and investors alike.

As the ecosystem continues to mature, Greece has the potential to emerge as a significant startup hub in Southeastern Europe, attracting talent and capital from across the region and beyond. The success of venture capital in Greece not only contributes to the country’s economic diversification and growth but also creates ripple effects across various sectors, including real estate and urban development.

For investors, entrepreneurs, and policymakers, the evolving venture capital landscape in Greece presents both challenges and opportunities. By addressing the remaining barriers to growth and capitalizing on the country’s unique strengths, Greece can solidify its position as an attractive destination for innovation and investment in the years to come.

10. FAQs

Q1: What is the average size of venture capital investments in Greek startups?

A1: The average size of venture capital investments in Greek startups varies depending on the stage of funding. Seed rounds typically range from €300,000 to €1 million, while Series A rounds can range from €2 million to €10 million. However, these figures are increasing as the ecosystem matures and attracts larger investments.

Q2: Are there any tax incentives for venture capital investments in Greece?

A2: Yes, Greece has introduced several tax incentives to encourage venture capital investments. These include a 50% tax deduction for individuals investing in eligible startups, as well as reduced corporate tax rates for innovative companies. Additionally, there are incentives for angel investors and tax breaks for startups in specific sectors like technology and research & development.

Q3: How does the Greek venture capital ecosystem compare to other European countries?

A3: While the Greek venture capital ecosystem is still smaller than those of major European tech hubs like London, Berlin, or Paris, it has been growing rapidly in recent years. Greece is increasingly seen as an emerging hub for Southeastern Europe, with competitive advantages such as lower operating costs and a highly skilled workforce. However, it still lags behind in terms of total funding volume and the number of later-stage deals.

Q4: What role do international venture capital firms play in the Greek startup ecosystem?

A4: International venture capital firms are playing an increasingly important role in the Greek startup ecosystem. They often participate in later-stage funding rounds, bringing not only capital but also valuable expertise and global networks. Some international VCs have also started to focus more on Greek startups, either through dedicated funds or by partnering with local investors.

Q5: How has the COVID-19 pandemic affected venture capital activity in Greece?

A5: Initially, the COVID-19 pandemic caused some uncertainty in the Greek venture capital market, with a temporary slowdown in investment activity in early 2020. However, the sector demonstrated resilience, with many startups adapting their business models and investors recognizing opportunities in sectors like e-commerce, digital health, and remote work solutions. By the end of 2020, venture capital activity had rebounded, with several significant funding rounds completed despite the challenging economic environment.

Article reviewed by Ariana Smit, Investment Portfolio Manager | Real Estate & Private Equity Expert | Driving High-Yield Investments, on March 28, 2025