The Malta Independent 18 June 2024, Tuesday
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Government launches €10m venture capital fund for investment in innovative technology start-ups

Tuesday, 19 September 2023, 15:03 Last update: about 10 months ago

Government on Tuesday has announced the establishment of a €10 million Venture Capital Fund aimed at providing equity investments in innovative technology start-up companies.

This fund is set to support various sectors, including video game development, Fintech, and E-sports.

Economy Minister Silvio Schembri announced this during the opening ceremony of TECHXPO, Malta's first-ever tech expo.

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Prime Minister Robert Abela also visited the TECHEXPO, and spoke of the importance of technological and digital development in the transition of the economy towards quality.

“Businesses that work this principle will find the government incentivising and backing them, so that our country will remain at the forefront on the creation of quality careers,” the Office of the Prime Minister said.

International companies like Baxter, Toly, ST Microelectronics, Methode and others participated in the expo.

Abela said that it brings satisfaction to see so many companies in Malta under one roof which create components for so many known brands around the world. “This is our economic success, but more than that, it is a sector where Malta will continue to grow as it was innovative and was at the forefront with initiatives it took, including in AI.” 

Schembri said: “We are committed to facilitating quality business growth in our country. The early stages of any start-up can be particularly challenging, especially in non-traditional sectors. Therefore, we recognized the need for government intervention to help these start-ups kickstart their journey."

The minister said that the primary objective of this fund is to invest in companies with innovative products and solutions, fostering a robust ecosystem of financial support within the country.

Start-up companies at the commercialization stage will be eligible to benefit from this fund.

The scheme, named the Malta Venture Capital Scheme, will be managed by the Malta Government Investments and will eventually establish a specific entity, Malta Government Ventures, for this purpose.

Additionally, a board of directors will be formed to define the investment policy for the scheme.

The board will consist of representatives from government entities actively supporting private enterprise, including MGI, MIMCOL, Malta Enterprise, Malta Development Bank, the National Development and Social Fund, and Gaming Malta.

A committee will be established to assist the board in evaluating applications. Each start-up can receive a maximum equity investment of up to half a million euros.

Over the course of two years, investments will be made in approximately 20 companies.

The sectors that will benefit from this investment include video gaming, esports, ICT, Fintech, Life Sciences, Pharma, Green Energy, Filming Industry, Agritech, AI, Communications, Electronics, Financial Services, Medical Devices, Software, Technology, VR, Bluewater Industries, and Digital Technologies.

Schembri said that government is committed to continuing its efforts to promote sustainable economic growth, foster innovation, remain at the forefront of digital revolution as well as staying competitive while creating quality employment opportunities.

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