Greece's new startup culture: technology and seagrass sunglasses

Record ID: 1115167

  • Title: Greece's new startup culture: technology and seagrass sunglasses
  • Date: 3rd May 2018
  • Summary: MARATHON, GREECE (RECENT) (REUTERS) VARIOUS OF MOUNDS OF SEAGRASS PILED UP ON THE BEACH NEXT TO SHORE PATRAS, GREECE (RECENT) (REUTERS) VARIOUS OF TSOMPANIDIS IN HIS FACTORY SORTING OUT PILES OF SEAGRASS ON A TABLE (SOUNDBITE) (English) ENTREPRENEUR STAVROS TSOMPANIDIS, AGED 25, SAYING: "We came up with the idea to recycle them, upcycle them, give them a second life, by tr
  • Embargoed: 17th May 2018 12:15
  • Keywords: Greece crisis startups seagrass technology hub enterpeneurs youth
  • Location: ATHENS, MARATHON AND PATRAS, GREECE
  • City: ATHENS, MARATHON AND PATRAS, GREECE
  • Country: Greece
  • Topics: Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA0018EBFEX3
  • Aspect Ratio: 16:9
  • Story Text: During Greece's debt crisis, an economics student came up with an innovative idea while walking along a beach and looking down.
    Stavros Tsompanidis saw huge piles of seagrass that were only a burden on the local authorities who had to clear them away.
    Sifting through the seagrass in his factory, the 25-year old said he had to take the chance and do something new or be overwhelmed by the misery engulfing young people bemoaning the lack of jobs due to the crisis.
    His seaweed is recycled and used to make products such as iPhone cases and sunglasses.
    "We came up with the idea to recycle them, upcycle them, give them a second life," said Tsompanidis. He represents a sea-change in mindset among young Greeks who have turned to entrepreneurship as a result of the economic crisis.
    "I see people full of misery, they are not searching...we have to act," said Tsompanidis.
    Greek startups are mushrooming after a financial crisis that shrank the economy by a quarter and caused unemployment to reach almost 28 percent.
    Startups were virtually unheard of a decade ago but they are now creating jobs and offering some hope that Greece can reverse an exodus of its highly skilled youth.
    About 223,000 Greeks aged 25-39 emigrated to richer countries between 2008 and 2013, central bank data shows.
    Greek lender Eurobank provides a start-up hub in Athens called EGG - which stands for "enter, grow, go", where entrepreneurs can use the space to work and share ideas.
    Eurobank Deputy CEO Stavros Ioannou said the goal was to keep bright minds from leaving the country.
    The economy's growth depended on how well these businesses did in the next decade, he said.
    Software start-up Ex Machina, which offers predictive analytics to weather sensitive industries, works from EGG's premises. They started their company just as capital controls were imposed in Greece, creating a host of problems such as opening a bank account. There has also been a lot of bureaucracy and high taxes, but they are driven by the desire to stay in Greece, says member Stratos Theodorou.
    Ex Machina and Tsompanidis' company PHEE, both relied on savings, grants and winning start-up competitions in the beginning. Venture capital in the sector is now growing. A European Investment Fund initiative, supported by private investors, is expected to pump about 400 million euros into Greek start-ups and other small businesses over the next five years.
    Greece has no official startups register but several private databases show they number between around 600 and 1,100.
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