MALTA Trends and Developments Contributed by: Josef Cachia Fenech Gonzi and Cherise Abela Grech, GTG Legal
GTG Legal 66 Old Bakery Street Valletta VLT 1454 Malta Tel: +356 2124 2713 Email: info@gtg.com.mt Web: www.gtg.com.mt
Market Overview and Investment Trends The venture capital (VC) market has recently gained significant traction, and is currently expe - riencing major interest and growth. The local market is being driven by government incen - tives, a growing interest from foreign investors, and an expanding start-up market. The past few years have seen a rise in the number of deals by VC investors and this is especially relevant in the context of industries such as gaming, fintech, AI, esports and digital infrastructure as a whole. Investments remain attractive, in the Maltese context, due to Malta’s efficient and business- friendly regulatory framework, a favourable tax refund scheme and various government incen - tives, including various schemes managed by the Malta Enterprise. The first half of 2024 saw Malta exceed EUR13 billion in foreign direct investment, showcasing the increased confi - dence foreign investors have in the jurisdiction. Even though Malta’s geographical and market dimensions are small, its location and general business-friendly mentality ensure its attractive - ness in the European start-up market, attracting significant and constant foreign investment. In 2024, a new EUR10 million VC-co investment fund was introduced in an effort to bring private
investment to the country through a mechanism which de-risks early funding. Key Players Determining VC in Malta In Malta, VC is backed and driven by a mixture of local and foreign investors, bodies and interest groups, such as: • VC funds, including GoVenture, AcrossPlus, the Seed Investment Initiative; • angel investors and other networks, including the Malta Angel Investors Network, Angel - Match.io; • incubators, such as Malta Enterprise, Malta Digital Innovation Hub and Tech.mt; • VC initiatives backed by the government, including Malta VC Fund and Accelerate 2024; • foreign investment funds, such as various UK-based and other EU-based funds seek - ing to establish a healthy business interest in Malta; • institutional investors and general private equity firms; and • government-backed set-ups or local private associations, such as FinanceMalta, Malta Development Bank and the Private Equity Venture Capital Association (PEVCA).
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