Malta’s long history of supporting startups

By Editorial Team

Malta continues to punch above its weight in the startup scene with the country set to host the Startup Festival Week for the fifth year in a row. The festival will run from 20th to 24th October with the extended format reflecting the festival’s growth and the burgeoning sector.

The growth in the sector does not come from nowhere but is rather the result of a long-term concerted effort by the Maltese government to facilitate innovation and attract talent. The festival will feature keynote talks, panel discussions, hands-on workshop, and an exhibition.

Malta’s affinity with startup culture is natural; like startups, Malta is small, yet with a disproportionally large global presence. It is also defined by a unique blend of European, Middle Eastern, and North African cultural influences, reflecting how startups take disparate influences and combine them into a coherent and novel product.

Malta’s efforts to accommodate and support startups have intensified in recent years. In 2022, the government launched the Startup Residency Programme, geared towards attracting new talent by offering founders, core employees, and families’ residency permits of up to five years, alongside government support.

In 2024, the government then announced a €10 million venture capital fund aimed at providing equity investment in start-up companies in innovative sectors like video gaming, fintech, green energy, and AI. This greatly increased the incentive for the Residency Programme; startups relocating to Malta were now offered real financial assistance alongside a favourable regulatory environment and dynamic private sector.

It does not stop there. At the opening event for the EU-Startups Summit earlier this year, the Prime Minister took the opportunity to unveil yet another reform. Though the full details are not yet available, the Startup Framework will aim to streamline the support network for startups, thus creating a “one-stop shop” from which startups in Malta can access financial support and expert advice.

Events such as the EU-Startup Summit earlier this year and the upcoming Startup Festival Week, make clear that the government’s strategy to foster creativity and competitiveness in the island is bearing fruit. Malta’s uniquely accommodating environment for new businesses utilising cutting-edge technology means that this small island will continue punch above its weight.