The Government will be establishing a Venture Capital Fund of €10 million, aimed at the Government providing equity investment in start-up companies focused on innovative technologies such as video game development, Fintech and E-sports.
This was announced by the Minister for the Economy, European Funds and Lands Silvio Schembri, during the official opening of the first TECHXPO that is being staged in our country. “We are continuing to work on measures to facilitate quality business in our country. The beginning of any start-up is the most difficult time, particularly if the sector is not a traditional one. Therefore we felt the need for the Government to intervene to help these start-ups start their way so that they can roam,” said Minister Schembri.
The main objective of this fund is to invest in companies with innovative products and solutions, so that in our country there is a complete ecosystem of support including financing. Start-up companies that are in the marketing stage will be able to make use of this fund. This scheme, the Malta Venture Capital Scheme, will be managed by Malta Government Investments and further on a specific company, Malta Government Ventures, will be set up precisely for this purpose. A board of directors will also be set up, with the aim of defining the investment policy that will be operating this scheme.
The board of Directors will be made up of representatives from government entities that provide the most aid to the private sector including MGI, MIMCOL, Malta Enterprise, Malta Development Bank, the National Development and Social Fund. , and Gaming Malta. A committee will also be set up, to assist the board to assess the applications. Each start-up will be able to be given up to a maximum of half a million euros in equity. It is therefore estimated that, over a period of two years, investments will be made in around 20 companies.
The sectors that will benefit from this investment are the innovative ones such as 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. “This Government is committed to continue working in favor of sustainable economic growth, to welcome innovation and to be at the forefront of this digital revolution. Let’s continue to work together in favor of this in order to ensure that digitization and AI in our country continue to move forward and make us more attractive and competitive while creating quality jobs,” concluded Minister Schembri.
Meanwhile, on Wednesday September 20, in the background of TECHXPO, the MED9 meeting will also be held, where together with Minister Silvio Schembri, eight Ministers, or High Representatives, of 8 countries will join member states of the European Union which are Mediterranean countries, as well as the General Director for Communication, Content and Technology of the European Commission Roberto Viola, where Artificial Intelligence will be discussed among others and how these countries can cooperate together for the benefit of the citizens of the member states.
