Herald Bonnici, Secretary General of the Malta Private Equity and Venture Capital Association (PEVCA), recently highlighted on LinkedIn how Malta's "business-friendly environment and progressive policies" are positioning it as a hotspot for innovation.

The country's flourishing technology and gaming sectors, along with emerging startups in fintech, edutech, artificial intelligence, blockchain, and gaming, are attracting both local and international investors. However, Mr Bonnici emphasised that “capacity and deal flow are critical challenges that require our focus.”

One area that holds immense promise in addressing these challenges is the development of accelerators. These initiatives, Mr Bonnici noted, have demonstrated their ability to enhance the venture capital ecosystem by offering numerous benefits to startups, including funding, mentorship, and networking opportunities.

The Maltese Government has taken proactive steps to foster innovation and entrepreneurship.

For instance, Malta Venture Capital (MVC) provides startups with equity investment of up to €500,000, while the Seed Investment Scheme offers tax credits to individuals investing in qualifying startups. Additionally, Malta Enterprise runs several schemes to support the growth of startups.

Despite these efforts, Mr Bonnici argued that "Malta needs to promote a greater number of accelerators to further enhance the venture capital industry."

Accelerators such as SuperCharger Ventures are already making a positive impact, providing critical resources and opportunities for startups. According to Mr Bonnici, accelerators play a crucial role in boosting the startup ecosystem by addressing common challenges and creating viable investment opportunities.

The key benefits of accelerators

Accelerators offer several advantages that can significantly benefit Malta’s startup landscape. One of the primary benefits is funding.

“Accelerators often provide seed funding to startups in exchange for equity,” Mr Bonnici noted, which helps startups achieve milestones and build momentum. Beyond funding, mentorship is another cornerstone of accelerator programmes. Startups gain access to experienced industry experts who provide guidance, helping them navigate challenges and make strategic decisions.

Networking opportunities also abound within accelerators. Mr Bonnici said that they “create opportunities for startups to connect with a wide range of industry professionals, investors, and fellow entrepreneurs.” These connections often lead to partnerships, additional funding, and growth opportunities. Additionally, accelerators provide education and training, equipping startups with essential business skills like fundraising, product development, and marketing.

Another critical feature of accelerators is demo days. These events allow startups to pitch their ideas to potential investors, refining their presentations and increasing their chances of securing funding.

For Malta, Mr Bonnici highlighted the importance of deal flow, noting that “international accelerators can provide deal flow that is essential for venture capital funds,” particularly in smaller countries.

Accelerators as a catalyst for growth

The role of accelerators extends beyond individual startups.

By helping startups overcome common challenges, accelerators create a ripple effect, driving growth across the entire ecosystem. They enhance the quality of startups, making them more attractive to investors and increasing the overall volume of investment opportunities. This virtuous cycle benefits not only startups but also the broader venture capital industry in Malta.

Mr Bonnici underscored the need for Malta to invest in more accelerators, as they have proven to be instrumental in fostering innovation and scaling businesses.

Initiatives like SuperCharger Ventures demonstrate the transformative potential of such programmes, and with a focused effort, Malta can amplify its impact on the global stage.