Sergey Kartashov shares his vision on Cyprus

09/27/2023

Sergey Kartashov is the CEO of Generation Partners Ltd. He shared his thoughts about the process of selecting new IT projects for further investment. According to the vision of Kartashov, Cyprus is a safe island destination for IT and intellectual property companies. There are different types of asset management offices that deal with the preservation of the assets.

The asset management offices aim to increase the assets of families, groups, partners, and individuals with a fortune of more than $100 million. In terms of managing IT assets, Cyprus is one of the most prominent regions at the moment.

The Role of IP Box
According to Sergey Kartashov, the chief executive officer of Generation Partners Ltd, the interest of intellectual property companies lies in this jurisdiction due to the IP Box. The CEO of Generation Partners thinks IP Box as a tax incentive regime. The main purpose of this regime is to allow the creation and usability of intellectual property.

Sergey Kartashov said, “To obtain tax benefits, you require not only a nominal company, but also a full-fledged development office.” According to him, the purpose of the company and the office should be to create intellectual property products independently. These companies can also develop a purchased product. Kartashov added that the tax benefits pushed the foreign companies to relocate their offices and staff during the last year.

The introduction of foreign countries in Cyprus improved the development of the local IT industry. Sergey Kartashov added, “Of course, such a work involves serious upfront costs, but if you have great stock turnover, it will lead to substantial savings in the future.”

The CEO of Generation Partners Ltd. said that rapid development was noticed in the infrastructure of Limassol due to the influx of IT companies and assets. He added that Limassol had the potential to compete with Silicon Valley. The current business environment of the city predicts that it would become as prominent as the Silicon Valley in the near future. The island has the offices of the strongest IT companies at the moment.

The interest of Asset Management Companies in Cyprus
The focus of many IT asset management companies shifted towards Cyprus. Some of these companies provide independent analysis of the potential investment fields. These companies are focused to develop a firm investment strategy. Consultants collect and prepare documents after a course of negotiations with the banks. The aim of these consultants is to reduce the bank commissions and meet the financial requirements of an institution.

Generation Partners aims to find the expertise of a startup in order to grab a yield of 20% or more. According to Sergey Kartashov, the combination of classic investments and highly profitable projects with high risk plays a crucial role in this regard. The company deals with projects in the field of IT-ecosystems and video technology. Kartashov said, “We study industry trends and new projects on the market.” He added that they focused on the expertise level of the company, its staff, and the level of risk. Customers are the key to making a final investment decision in a new project, according to him. The diversification of the investment portfolio through a careful analysis of a startup IT business is one of the most important aspects to be focused by the company. “Every month, we analyze more than 30 companies,” he said. The company finds only 0.5-1 percent of these companies interesting, according to the recent stats.