Last Updated on Wednesday, 20 September, 2023 at 3:04 pm by Andre Camilleri
Government on Tuesday announced the establishment of a €10m 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.
“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 recognised the need for government intervention to help these start-ups kickstart their journey,” Schembri said.
He 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 commercialisation 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 €500,000.
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.