€10m VC fund for Maltese Fintech start-ups

As announced during the Fintech Panel at the Finance Malta’s Annual event last October, the Maltese Government has now officially launched a €10m venture capital fund with the aim of giving a boost to promising companies including fintech and technology start-ups.

The list of eligible companies is wide and includes Video game development, Fintech, AI, Financial Services, e-sports, life sciences, pharma, green energy, the filming industry, agritech, communications, electronics, medical devices, software, bluewater industries, and digital technology. 

Start-ups can be given up to €500,000 in return for equity however part of the process is that they must also be backed up by private funding. The investment by the fund will be pari-passu with that of private venture capital investors.

MGI CEO Jesmond Gatt was one of the main catalysts behind this new fund. As discussed in the PEVCA launch article, Malta no doubt offers a favourable business environment, progressive regulatory frameworks which makes it ideal for venture capital investment into both scaleups and startups. Initiatives by Malta Enterprise and other entities have provided tax incentives and grants that have helped tech companies, however this VC fund now shows that the Government has recognised the importance of creating an environment that facilitates funding. In this case, the focus is on seed capital funding which I believe is a great first step.

With a growing number of tech startups in fields such as Fintech, blockchain and artificial intelligence Malta is on the right track to position itself as a hotspot for innovation. In the startup sector, Malta is doing really well and this initiative will further fuel the success. Malta ranked fourth out of 21 countries that took part in the Startup Nations Standards Report released in March, scoring a 100% in a number of metrics.

Malta now needs to see more growth in its network of private accelerators, VC’s and PE firms to facilitate growth for companies that are ready to scaleup beyond Maltese shores. Malta has some very successful high quality startups that come with a proven product and that are ready to scaleup internationally. By putting Malta on the map in the Fintech space, Malta’s PE and VC journey will hopefully continue to develop over time and who knows, one day we might just find our first homegrown unicorn!