BR/02/2022

GROWTH TO CONTINUE ON REAL ESTATE MARKET AFTER 2021 RECOVERY TREND

WHERE ROMANIA TALKS BUSINESS February, 2022 / Volume 26, Issue 1

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6

SECTORS TO WATCH IN 2022

19

FROM AI AND SMART HOMES TO FITNESS GADGETS AND DIGITAL SENIORS

30

METASPACES TAKING OVER THE EVENTS INDUSTRY

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VODAFONE PURSUING FULL CONVERGENCE ON ROMANIAN MARKET

www.business-review.eu Business Review | February 2022

• Editorial •

EDITORIAL 3 REAL ESTATE

Anda Sebesi • Editor-in-Chief • 6 Growth to continue on real estate market after 2021 recovery trend

COVER STORY

A challenging start to the year

8 Vodafone Romania aiming to capture the full potential of convergence

MAIN STORY

2

022 is bound to be a challenging year. The ongoing pandemic and the associated containment measures add a major ele-

16 Romania’s strong

ment of uncertainty and risk to the local economy over the

economic growth in jeopardy amid inflation risks

short term, amid the nationwide infection growth rate generated by the Omicron variant and the potential impact of this wave on Europe’s economies, which are also being hit hard by the energy crisis.

ENTREPRENEURSHIP

Our main story highlights industries such as automotive, carsharing, technology, real estate, and retail, which are expected to be Romania’s star sectors in 2022. And since they are also some of the biggest employers on the local market, it is important for them

26 Pandemic economy

to understand what they should do to ensure personnel retention,

continues to shape local startup industry in 2022

as employees are highly interested in flexible work models.

The Romanian telecom market is certainly one of the most competitive in Europe, as well as one of the best markets on the

CITY

continent from a technology and infrastructure point of view, providing consumers with high quality services at very affordable prices. This is the result of the high level of competition, but also of the considerable investments the industry has made over the years, which have enabled consumers to benefit from new services and technologies as soon as they became available. This is why we’ve decided to dedicate our first cover story of 2022 to

36 2022 concerts in

this industry and talked to Achilleas Kanaris, the CEO of Vodafone

Romania

Romania, a company that has invested more than EUR 5 billion on

37 New cultural

the Romanian market since it first launched its services here.

spaces in Romania

EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | February 2022

4 NEWS

WHO’S NEWS BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at mihai.cristea@business-review.eu

Free Now expects Romania operation to double in 2022

By Deniza Cristian and various vehicle options that are bookable within one app, we are responding to the trend of on-demand consumption. Flexibility and almost

Silvia Sticlea is the new Country Manager of Nestlé Romania. Having joined the company in 2001, as a Brand Manager, Silvia has held several roles within the company, including Group Brand Manager within the culinary products division, Consumer Insight Manager, Marketing Advisor, Business Manager of the culinary products division at Nestlé Austria, National Key Account Manager in SEE, and Business Executive Officer for Beverages, Confectionary & Culinary categories in Romania.

Before taking over as Country Manager, Silvia Sticlea was Business Executive Officer of Confectionery & Dairy for the South East Market (2018-2022).

unconditional availability are the decisive factors for services in the 21st century, including for sustainable urban mobility. We see huge potential on the European multi-mobility market. 2022 will be the year

The company has been operating on the local market since November 2019

page 5

mainstream,” said Marc Berg, the CEO of Free Now. Free Now estimates that

Free Now, Europe’s leading

cities where the app is active,

multi-mobility platform, has

Bucharest ranked eighth in

many users are now opting

seen a favourable development

2021 in terms of the number of

for solutions that help reduce

of ride-hailing and a dynamic

rides, while a total distance of

CO2 emissions, pointing to the

recovery in this sector after

almost 24 million kilometres was

transition to electric vehicles

the pandemic, estimating a

travelled by users in Romania.

in taxi and ride-hailing fleets.

doubling of the brand’s local

The average value of a trip was

The company has been operat-

operations in Romania in 2022.

about RON 17, while the average

ing on the local market since

Free Now says that the total

distance was over 5 km.

November 2019, and the app is

number of users across the

Julia Kim is the new President of Samsung Electronics Romania and Bulgaria. She has been part of the Samsung team for almost 20 years, having started her career in Samsung’s Management Support team. In 2009, she was assigned to EVO (European Visual Operation) for EHQ in London and then moved to Samsung Electronics Baltics as CE Business Manager. In 2015, she returned to Korea’s TV Global Product Marketing team, and in 2020 she became President of Samsung Hungary.

when multi-mobility becomes

“People want to get from A to

currently available in Bucha-

countries where it currently

B easily, at any time they need to

rest, Cluj-Napoca, Brasov,

operates has reached 54 mil-

do so. With the seamless integra-

Iasi, Constanta, Sibiu, Oradea,

lion. Among all 170 European

tion of multiple mobility brands

Timisoara, and Targu Mures.

Iulius invests EUR 40 million in the expansion of Iulius Mall Suceava

By Deniza Cristian Iulius has invested EUR 40

another 14,000 sqm. The total

million in the expansion of

investment will thus reach EUR

Iulius Mall Suceava, the largest

110 million. As a result of this

shopping and entertainment

investment, Suceava will have a

venue in Northern Romania,

more competitive presence on

exceeding 65,000 sqm, following

the local retail market, compet-

the centre’s latest expansion of

ing with cities like Iasi, Timiso-

Iulius has been present in Suceava for over 13 years

www.business-review.eu Business Review | February 2022

NEWS 5

Strong recovery in 2021 for the Romanian M&A market

By Deniza Cristian M&A activity in Romania rebounded strongly in 2021 vs 2020 both in terms of deal value and deal count. Total M&A for the year amounted to EUR 5.2 billion, up 32 percent year-over-year across 178 transactions, underscoring the strength of investor confidence in the Romanian business climate and its post-covid recovery.

Peter Latos, Consulting, Strategy and Transactions Leader at EY Romania

Emma Zeicescu is Philip Morris Romania’s new Communications Director. In her new role, Emma will help communicate the company’s vision to replace cigarettes with smoke-free products. Dragos Bucurenci, who had been the head of the communication team since 2019, has taken over the External Affairs Director position. Emma Zeicescu is joining Philip Morris Romania after a career of more than two decades in television, print, and online media.

Strategic deal-making accounted for 90 percent of M&A

Technology, real estate, con-

their business and consolidate

activity for the year, while

sumer products, and retail were

market positions. With com-

private equity captured the

the most active sectors in 2021,

petition for good quality assets

balance across a small number

with 72 deals in aggregate, up 50

increasing, sellers’ price expec-

of transactions (only 17 deals in

percent from 48 deals in 2020.

tations are rising, and it will be

total for 2021). Despite the low

Technology deal-making almost

important for CEOs to main-

share of overall M&A activity,

doubled in 2021, while real

tain a rigorous approach to

private equity funds remain ac-

estate, consumer products, and

investment appraisal decisions

tive in Romania, and they are

retail deals were up 35 percent+

given inflationary headwinds

expected to see growing levels

year-over-year.

in the form of higher costs for

of activity in the years to come,

“We expect to see the pace

energy, wages, raw materials,

given the size of the market

of Romanian M&A accelerate

and interest rates,” says Peter

opportunity and additional

even further in 2022 as CEOs

Latos, Consulting, Strategy

allocations to the asset class

continue to seek opportunities to

and Transactions Leader at EY

from pension funds.

accelerate the transformation of

Romania.

ara, Cluj-Napoca or Constanta.

Catalin Samara Chief Operating and E-commerce Officer and member of the Executive Committee at Carrefour Romania, is taking over as Director of Bringo International. In this newly created position, he will be responsible for coordinating the international activity of the personal shopping and delivery service.

Catalin Samara has been with Carrefour Romania for 21 years now, having held a number of strategic positions within the company and been a member of the Executive Committee since 2011.

“Iulius Mall is a landmark for the community, and we will continue to keep it among people’s top preferences by enhancing its role in the city’s economic and social development. We will stay close to the region’s inhabitants and continue to meet the expectations of an emerging city,” said Eduard Marcu, Shopping Centre Manager at Iulius Mall Suceava. Iulius has been present in Suceava for over 13 years, its centre reaching more than 10 million visits per year.

Victor Rachita will lead the Industrial & Logistics department at CBRE Romania. He is one of the top seniors of the Romanian real estate market, with more than 20 years of experience, half of which were spent within CBRE, in head of office (2012-2015) and business development (until 2018) positions.

www.business-review.eu Business Review | February 2022

6 REAL ESTATE

Growth to continue on real estate market after 2021 recovery trend The volume invested in real estate assets in Romania, Poland, and Slovakia increased in 2021, while the Czech and Hungarian markets experienced a decline compared to 2020, according to data from real estate consulting firm Cushman & Wakefield Echinox.

By Aurel Constantin

(75,000 sqm GLA) office project in Bucharest to Adventum Group, with this transaction marking the latter’s entrance on the RomaTotal demand for modern office space increased by 23 percent in 2021

A

nian real estate market. CTP (the largest owner of industrial and logistics spaces in the country) strengthened its position by

t the regional level, total transaction

by retail properties (13). Despite a smaller

completing four transactions during the year,

volumes reached EUR 9.98 billion,

number of assets transacted, the 8 office

totalling EUR 170 million.

a 4.3 percent decrease from the

buildings that changed their owners in 2021

previous year. The Polish market registered

had a 44 percent market share of the total

OFFICE MARKET STILL ON THE RISE

a growth of 8.3 percent, while the transacted

volume (EUR 402 million), followed by the

Total demand for modern office space

volume in Slovakia was 54.2 percent higher

industrial segment (30 percent share) and

increased by 23 percent in 2021 to 263,000

in 2021 than in the previous year. On the

retail (20 percent).

square meters compared to the same period

other hand, the Czech Republic recorded a

“Investors’ interest in real estate assets

of the previous year, according to Colliers

36 percent drop in transactions pertaining to

remained at a high level in 2021 amid a rela-

data. At the same time, new demand reached

income-producing assets, while the volume

tive re-balancing of the relationship between

104,000 square meters, up 47 percent from

in Hungary declined by 18.2 percent.

landlords and tenants, an aspect that is meant

the same period in 2020. The fourth quarter

In Romania, 54 transactions with real

to ensure a stable financial flow for investors.

was the first truly normal quarter in two

estate assets were completed last year, twice

A high-potential part of the market are sale &

years, Colliers consultants note, suggesting

the number recorded in 2020, with the total

lease-back transactions, as the owners of vari-

that signs of future demand give confidence

investment volume reaching EUR 916 million,

ous businesses will benefit from such deals if

that the return to the office market may

up 0.2 percent, according to the Romania

they are able to finance their core businesses

indeed begin in 2022, even though it might

Investment Marketbeat report.

by disposing of their real estate portfolios. In

take a few more years to reach pre-pandemic

2022, we can expect new record deals, which

levels.

After a first semester in which the investment volume was below the level registered

could contribute to exceeding the 1 billion

“Compared to previous years, 2021

in the same period of 2020, the market

euro transactional volume threshold,” said

remains relatively weak, but the second

strongly recovered in H2 2021, with transac-

Cristi Moga, Head of Capital Markets at Cush-

half provided encouraging signals in terms

tions totalling EUR 618 million, an increase of

man & Wakefield Echinox.

of companies and signed contracts. New

more than 100 percent when compared with

The largest transactions in terms of

demand in the fourth quarter was in line

volume were Louis Delhaize’s (Cora) sale and

with the quarterly average recorded from

leaseback of its six commercial galleries in

2015 onwards. The total value of completed

involved logistics and industrial premises—

Romania and Supernova and Atenor Group’s

Colliers-mediated office rental transactions

around 40 percent of the total (21)—followed

disposal of the Hermes Business Campus

in 2021 exceeded 43,000 square meters, a

the first six months of the year.

In terms of asset classes, most transactions

www.business-review.eu Business Review | February May 2016 2022

COVER REALSTORY ESTATE14 7

clear increase compared to 2020. It is also

excess of 10-15 percent when compared to the

to follow. Bucharest continues to account for

important to point out that the calculation

quotes usually received from contractors in

the most real estate transactions in Romania

methodology did not include areas that were

negotiations during the tender stage.

(67 percent of those closed in the first half of

returned to owners or other transactions that

The stock of modern office space in

2021, mainly related to office buildings and

are in the process of completion,” says

Bucharest has reached 3.2 million sqm,

hotels, according to central bank data), but

George Didoiu, Director of Tenant Services

with 250,000 sqm delivered in 2021. Col-

the appetite for other regions in the country

Office 360 at Colliers.

liers consultants say that the reduced supply

is also obvious,” said Alexandra Smedoiu, Tax

of modern offices in Bucharest per capita,

Partner at Deloitte Romania and Real Estate

fact that managers are still exploring new

of only about 1,300 sqm of office space per

Industry Leader.

post-pandemic work models, with the share

thousand inhabitants—even without taking

In terms of workforce, organisations

of office and remote work being decided by

into account the fact that the metropolitan

should continue investing in digital tools to

each company. They approach real estate

area is probably larger than 2.4 million inhab-

support remote work and focus their recruit-

needs with caution, and for some the hybrid

itants— is a long-term isolating factor, and

ing efforts on employees with technology

work model generates new challenges related

they expect the modern office stock to start

skills, according to the study. Two-thirds of

to the work environment of the future. But

growing again in a few years. For comparison,

overall, there are some positive factors that

Warsaw has about 2,000 sqm of office space

suggest that the market’s recovery should be

per capita, while Amsterdam has about

somewhat shorter this time around, includ-

1,800 sqm.

Colliers advisors draw attention to the

ing the fact that the Bucharest office market is noticeably more mature than it was a decade ago and it benefits from an increased pres-

COMMERCIAL REAL ESTATE TO KEEP GROWING

ence of large international companies. Oth-

80 percent of representatives of commercial

erwise, IT&C and service companies remain

real estate (retail, business centres and offic-

dominant on the Bucharest leasing market.

es, logistics spaces) expect a revenue increase

“More and more of the conversations

this year compared to 2021, while 73 percent

we’ve been having lately with the manage-

expect transactional activity to intensify over

ment of large companies have been related to

the next 12 months, according to the Deloitte

employees’ productivity and social connec-

2022 Commercial Real Estate Outlook global

tions and focused on how to create a work

study. At the same time, given that global

environment that supports these principles.

M&A activity increased by about 85 percent in

It becomes obvious that working from home

the first half of 2021 compared to the previous

for extended periods of time also has negative

year, 40 percent of companies participating

respondents revealed that their companies

aspects, especially in the long term. Demand

in the survey said they could get involved in

were planning to be completely or partially

has re-emerged from large international com-

such transactions in the coming quarters.

virtual going forward, although more than

panies announcing that they are looking to

According to the Deloitte study, revenue

half believed long-term remote working

open offices here, while many of the existing

prospects differ by property type. Compa-

would negatively impact productivity. In con-

firms are starting to resume their expansion,

nies that own buildings being used in the

trast, about 60 percent felt a remote working

and this new demand should compensate for

digital economy (data centres, cell towers or

option would help their company compete

any reduction that may result from the adop-

industrial spaces) have even better revenue

for talent.

tion of a hybrid working model. Of course,

prospects this year compared to those in

there are also companies that have reduced

other areas. Even office, retail, and hospitality

to respond to in the coming period in order

their office space or have tried to sublet their

respondents showed some optimism for the

to meet investor, tenant, and employee ex-

spaces, offering very attractive packages to

short term.

pectations is related to ESG (environmental,

interested parties,” Didoiu adds.

Another challenge companies will need

Under these circumstances, many com-

social, and governance) issues. 60 percent of

panies are focusing on retrofitting properties

respondents believe that ESG initiatives are

es and future needs of the office market with

and repurposing spaces for alternate uses

driving new business opportunities for their

Office 360°, a complete approach to the office

to maximise their value. However, only a

organisation, while half think such initiatives

and all its elements, carried out through a

quarter of them are substantially increasing

are giving them a competitive advantage.

unique and highly complex process that is

technology investments to strengthen portfo-

tailored to the very last detail to fit compa-

lio and asset management capabilities.

Colliers is responding to current challeng-

nies’ needs and strategies. Colliers' approach

On the other hand, 80 percent of the companies surveyed said they did not have a

“As far as the local market is concerned,

fully modernised core system that could eas-

to cost control at each stage of an office trans-

after the 2021 record for land transactions,

ily incorporate emerging technologies, which

formation delivers additional savings often in

we expect real estate project developments

limits their progress and ability to innovate.

8 COVER STORY

www.business-review.eu Business Review | February 2022

www.business-review.eu Business Review | February 2022

COVER STORY 9

VODAFONE ROMANIA AIMING TO CAPTURE THE FULL POTENTIAL OF CONVERGENCE Achilleas Kanaris, the CEO of Vodafone Romania, sat down with Business Review to share his views on Romania as a society and a growing economy. He also brought up two scenarios for the local economy in light of the National Recovery and Resilience Plan (PNRR) and revealed the company’s main strategic directions on the local market. Turning Vodafone Romania into a more agile and fast-paced technology company that Romanians can continue to trust and rely upon for home & office solutions, as well as making the most out of convergence solutions, are among the CEO’s top priorities.

By Anda Sebesi

www.business-review.eu Business Review | February 2022

10 COVER STORY

You’ve been living in Romania for a few months now. How are you finding it as a society and economy, and how does it compare to the other European countries with which you are familiar?

is harming the market in the long term, because the more margins

I would start by saying that I like Romania and its people very

– increased costs for energy (as a telecom operator we are a big

much; it’s a vibrant country with a bright future ahead. I believe

energy consumer), equipment, labour, etc. So, in my opinion, the

that it has significant economic potential, but this potential could

practice of continuously lowering prices that we have been seeing

be better capitalised through a more strategic approach to economic

on the local telecom market is no longer sustainable.

development. I have two important convictions in this regard. First,

get squeezed, the more prices deflate, but unfortunately, the same cannot be said about our raw material costs. That’s the other side of the story, where we have been seeing constant pressure on costs

I’m therefore seeing two very different scenarios for the Ro-

that the country must seize the opportunity of PNRR funds, which

manian industry’s future. It’s either going to become an amazing

can drive transformation towards a more resilient, future-proof

market that will act as the platform for the country’s digitalization

economy with higher productivity and competitiveness, a highly

or a market where we’ll continue our race to the bottom in termsw

skilled workforce, and capability for innovation and technology

of prices, we stop investments, we have no more development of

integration. Embracing this opportunity could help Romania get

5G, and no more ultra-high speed broadband networks. Based on

ahead of other countries, even some in western Europe; otherwise,

how things stand today, these two scenarios have about the same

it will be left behind.

likelihood of coming true.

My second conviction is that we need to let the private sector drive the development. In my opinion, the government should work very closely with the private sector, but it should also allow it to take the lead in

The telecom industry is going through big changes all across the world. What are today’s biggest trends?

terms of defining what needs to happen. So, to

Building on the previous question, I think

recap, let’s recognise that the coming period

that improving overall efficiency and ensur-

will either represent a great opportunity or

ing sustainable development is a key focus

a major risk for Romania, and let’s put the

for telecom companies, especially in the

private sector in the driver’s seat. This will

context of the growing level of investment

all make a huge difference in how Romania

required for next generation networks and

positions itself within the EU over the com-

state-of-the-art digital capabilities to serve

ing decade.

customers.

On the technology side, 5G is a key enabler

What do you think about the Romanian telecom industry? Is it more competitive than those of other countries?

of the digital future and it opens up a whole new era in terms of connectivity and communications services. 5G technology will power the digital industrial

The Romanian telecom market is certainly one of the most com-

revolution. All industries can benefit from it, from automotive,

petitive markets, at least among countries in Europe. At the same

healthcare, and manufacturing to agriculture, transportation, and

time, it is one of the best markets in Europe from a technology and

many others. There are numerous use cases that demonstrate the

infrastructure point of view, providing consumers with high quality

overall value of 5G, such as industrial automation, smart cities,

services at very affordable prices. This is the result of the high level

autonomous vehicles, smart agriculture or remote health monitor-

of competition on the market, but also of the considerable invest-

ing and assistance.

ments the industry has made over the years, which have enabled

Demand for IoT solutions will continue to grow. More and more

consumers to benefit from new services and technologies as soon

companies are starting to embrace IoT-based digital solutions for

as they became available. Vodafone has invested more than EUR 5

digitalizing production units, route optimisation, fleet monitoring

billion in the market ever since we launched our services here, and

or energy management. Smart cities also rely on technologies such

the acquisition of UPC was another testament of our appetite to

as 5G and IoT.

continue growing and investing in the local business.

Romania is known for having a telecom market with very low prices – among the lowest in Europe. Do you think this is sustainable over the long term?

What are your plans and objectives for Vodafone Romania?

What types of changes do you intend to implement in the coming years?

We are on the verge of reshaping Vodafone Romania and turn-

Indeed, Romanian consumers benefit from some of the lowest

ing it into a more agile and fast-paced technology company that

tariffs for telecom services in Europe, while also enjoying some

Romanians can continue to trust and rely upon for their home &

of the highest quality services. This has generated an extremely

office solutions. Convergence also remains one of our key priorities

favourable situation for consumers, and that is the positive side of

for the future, and my ambition is to capture its full potential as a

the story. However, extreme competition on the mobile segment

growth driver for the fixed and pay TV segment, but also to leverage

www.business-review.eu Business Review | February 2022

our convergent offering so that we can provide truly convergent

COVER STORY 11

services to customers, going beyond the benefits of acquiring both

What are Vodafone Romania’s priorities for 2022? Should we expect any new services or offers?

fixed and mobile services from us. We are not there yet, but we’re

This year, our priority is to get complete internal alignment with the

definitely aiming to become a much bigger player in the fixed seg-

new strategy and vision of what I call “the new Vodafone.” In terms

ment, with a more relevant and compelling convergent offering for

of our customers, our focus in 2022 will be on enhancing our digital

Romanian consumers.

assets and services for both retail and business customers, as well as

Another priority for us is transforming the way we interact with

on delivering truly convergent fixed & mobile services. You will see

our customers, through all of our digital assets, and to significantly

more solutions being provided for small, medium, and large enter-

increase the rate at which our customers use digital tools and

prises, and you should also expect your interactions with Vodafone

interact with our digital platforms. Though we have seen a higher

to significantly improve across all our digital assets.

appetite and usage of these digital tools during the pandemic, there hasn’t been a clear shift in customer behaviour. We want to accelerate this shift by providing a far better and more meaningful experience of interacting with our digital platforms.

Furthermore, we want to become more of a technology company

Vodafone Romania has the second largest number of customers on the market. Do you intend to become number one or is it more important to develop the business without necessarily focusing on your market share?

and grow our business beyond our core connectivity services, moving into the area of digital services for both the enterprise and consumer segments. On the business side, Vodafone has actually been a technology provider for many years now, especially for larger companies, having provided complex digital solutions like IoT and ICT, which go far beyond connectivity. We want to consolidate this approach in the future and bring it to the consumer segment as well.

Will Vodafone eventually become a tech services company (other services than telecommunication)?

What is the long term strategy for Vodafone Romania?

We obviously seek growth, and our new strategy is built around be-

Especially for our enterprise customers, we already provide a wide

ing as relevant and competitive as possible on the market. However,

range of digital solutions that bring much more value added for

growth will not necessarily come from the current market share, but

their business and that exceed by far the area of the traditional tele-

rather from new areas of opportunity that we’re seeing in digitali-

communication services. Our existing portfolio includes productiv-

zation, ICT & IoT, and integrated technology services that we can

ity solutions, cloud services, security, and eCommerce solutions,

provide to both households and enterprises. It’s well-known that we

just to name a few.

are a leader of the global IoT business; some people are even using

We are in a very good position to integrate all the features and

the analogy that Vodafone is the Google of IoT. Consumer digital

capabilities that make up a complete digital solution, in order to

services are also extremely exciting; we have examples of these

become a technology and digitalization partner for our retail and

services being developed on other markets, and we will embark on

business customers.

this journey as well.

Are there any differences in vision and strategy between Vodafone Romania and the global Vodafone Group?

We are perfectly aligned in terms of vision across the entire Voda-

How important is it to have customers for both fixed and mobile services? What are Vodafone’s plans for developing its fixed (internet and TV) infrastructure?

fone Group. On every market where it operates, Vodafone pursues

I believe customers will look for integrated technology solutions

its mission of connecting people for a better future, by being a key

for their homes and businesses, so they’ll choose a provider with a

contributor to the digitalization of societies and economies, reduc-

holistic approach that offers mobile & fixed convergence, together

ing digital gaps so that no one is left behind, and contributing to a

with adjacent services such as connectivity for smart homes or

sustainable future for our planet.

cybersecurity.

www.business-review.eu Business Review | February 2022

12 COVER STORY

The unfortunately fortunate CEO Achilleas Kanaris, the CEO of Vodafone Romania, shares his professional story with Business Review and sets some coordinates for young people who are thinking of pursuing a career in the telecom industry.

V

By Anda Sebesi

odafone Romania CEO

required Vodafone Romania to

Achilleas Kanaris’s

deliver in days what it would

original career plan

have normally done in years.

after graduating from univer-

“We had to move all our opera-

sity in the UK as an engineer

tions online,” he says. While it

was to go back to Greece and

was a tremendous challenge

run a business together with

for an operator like Vodafone

his father. But since he had

Romania, with all its call cen-

some doubts about this move,

ters and shops, the lesson for

he decided to give consulting a

Kanaris was that anything was

try. He was hired by Booz Allen

possible. “The pandemic was

Hamilton, a major US-based

an negative situation that led

consultancy, and stayed in

to a very positive outcome – it

London for the job. Then the

provided a platform for ventur-

opportunity to jump into the

ing out into new areas, includ-

telecom industry came along,

ing decision-wise. And the ma-

and that’s when he joined O2.

jor takeaway is that we came

Later, Vodafone reached out

through by empowering each

with another amazing oppor-

team member. Each and every

tunity for Kanaris, who was

one of us has proven our ability to individually drive collective

already a big fan of the brand.

“When I went to Greece to join the Vodafone sales organisation

change,” Kanaris notes. He adds that now, on its journey towards

in a supporting role, I was unfortunately fortunate, because the

becoming a fully fledged technology company, Vodafone doesn’t

business was not doing well, and the financial crisis was also hitting

just rely on top-down, take-it-or leave-it decisons. “It’s actually a set

the country right when I went back, in 2009. We therefore had to

of ideas that we discuss, sense-check, and co-create with the whole

deal with both crises at the same time. That was a fantastic learning

organisation. Hence our company motto: #togetherwecan.”

experience for me, because it really helped me focus, grow, be really

According to Kanaris, having access to anything and everything

quick in my decision-making process, and very clear about where

through a mobile devicee, at any time, saving valuable time, enrich-

I want to go,” Kanaris recalls. He adds that Vodafone Greece has

ing our lives with information, and connecting with people wherever

been used as an example of how you can turn around the funda-

they are, is the most important aspect of the huge technological leap

mentals of a business when you are in a tough situation. “It was a

of the last 15 years. “You can now use your mobile phone and reliable

great professional school, a fantastic journey of personal growth,

high-speed networks to access e-health solutions, mobile banking,

and it helped me develop a philosophy that I’ve been following ever

education, utilities, all the way to search & rescue services in case

since,” he says.

of emergency. This has changed the way we live and operate, and

Kanaris has been at the helm of Vodafone Romania since July last year, and he says that the Romanian business is substantially

telecoms have played a central role,” Kanaris adds.

Asked to give some advice to young people who are thinking of

larger than the Albanian unit he previously managed for almost

a career in the telecommunications industry, Kanaris puts it simply:

four years between 2018 and 2021, and that it operates on a far more

“Start now and be prepared for the unknown, and stay open to

competitive market. “This motivates me and pushes me to evolve

disruption and to constantly reinventing yourself. You’ll have the

even further. Vodafone gives me the chance to grow on a profes-

chance to closely witness the industry’s shift from bare connectivity

sional level. It is an organisation that continuously innovates; it is

to technology and digitalization. Years from now, you’ll look back

fearless, committed, and brave, yet human-centric – and these are

and see how much the world has changed – and you will have been a

values that I also stand by.” He explains that the covid-19 pandemic

part of that change.”

www.business-review.eu Business Review | February 2022

COVER BUSINESS STORY 13 14

7 Romanian scaleups to watch in 2022 As 2022 starts out with big plans for Romanian companies and investors, there’s more excitement around early-stage ventures and rapidly-growing firms than ever before. The triumph of a good team relies on many factors, including founder types, business models, capital, and products. BR has compiled a list of some promising companies in various verticals by looking at three crucial variables: at least EUR 1 million raised in the last year, internationalisation projects, and global recognition.

By Claudiu Vrinceanu system. The company has already started its internationalisation process.

FLOWX.AI FLOWX.AI, an enterprise platform that enables banks and financial institutions with complex IT infrastructures to build fast and modern digital experiences that are unbounded from the limitations of legacy systems, raised EUR 7.35 million in seed funding in 2021. The round, which was one of the largest European seed rounds of the year, was led by PortfoLion; the other institutional investors Rapidly-growing firms are in the eye of investors

were Day One Capital and SeedBlink. The company has begun using the investment to expand into the European and US markets

BUNNYSHELL

CODE OF TALENT

and recruit more than 20 employees by the

In 2021, Bunnyshell closed a EUR 1.1 million

Code of Talent raised a EUR 1.7 million Series

end of the first quarter of 2022 to meet de-

funding round that was led by Early Game

A equity financing round which was led by

mand from banks.

Ventures. It was EGV’s second investment in

Catalyst Romania Fund II and supported by

Bunnyshell, which helps businesses automate

existing investors ROCA-X and SeedBlink.

DIGITAIL

processes and manage cloud applications and

Code of Talent is a solution dedicated to

Digitail, a cloud service for veterinary surger-

infrastructures in just a few clicks, without

employee training. Any content – course ma-

ies and customers, raised USD 2.5 million in a

requiring specialised staff. The fresh round

terials, textbooks, procedures, and business

seed round led by byFounders and Gradient

allowed the company’s founders to speed

programmes – can be turned into learning

Ventures (Google’s AI fund), joined by Partech

up expansion on international markets and

paths and application paths based on micro-

and a series of angels. The startup had thus

develop a global partner network. Bunnyshell

tasks or microlearning. Code of Talent’s 2021

far been backed (in a 2019 pre-seed round) by

accelerated its growth based on strategic part-

was marked by a continuous increase in the

Fast Track Malmo. The Iasi-born tech scaleup

nerships and announced new joint projects at

number of users (already reaching 100,000)

is already a global company and its products

the local and global levels.

as well as international expansion, with the

are currently being used by 2,000 veterinar-

platform being available today in no less than

ians in 16 countries.

DRUID

18 languages.

Druid, a startup specialising in the develop-

FAMEUP

ment of intelligent virtual assistants (chat-

SEEDBLINK

FameUp, a mobile platform for micro-influ-

bots) for enterprise organizations, raised USD

SeedBlink, a platform that democratises

encers, raised a EUR 2.5 million round from

2.5 million last year through a Series A financ-

access to early-stage investments, closed a

Early Game Ventures and other investors,

ing round, led by GapMinder VC with an

Series A funding round worth EUR 3 million

including Daniel Dines.The startup already

investment of USD 2.2 million and completed

last year, of which EUR 1.1 million – double

has a global footprint, allowing any Instagram

by Early Game Ventures and private investors.

the initial target – came from crowd investing.

user (Facebook and TikTok to soon be added)

Plus, Druid recently signed its first partner-

With the new funding, SeedBlink advanced

with at least 500 followers to make money

ship with South African company Tangent

its plan to become one of biggest investment

by promoting various brands, products or

Solutions.

platforms in the European tech startup eco-

services.

www.business-review.eu Business Review | February 2022

14 MACROECONOMY

Key international trade trends that will influence Romania in 2022 After 2019, the darkest year for Romanian exports in the post-crisis period of 2008-2009, the first year of the pandemic (2020) was an even tougher one in terms of the evolution of the country’s trade balance: covid-19 eroded exports by 9.9 percent compared to the previous year.

By Claudiu Vrinceanu 2022 will see less support being offered to Romanian companies for internationalisation

R

omania remained the only country

reasons are the disappearance of the base

government might be, 2022 will see less

in the region with a significant trade

effect created in 2020 by the introduction of

support being offered to Romanian compa-

deficit in 2021. Despite the economic

restrictions and the persistence of the health

nies for internationalisation, due firstly to

recovery measured by GDP growth, the

crisis, doubled by the possibility of severe

the reorganisation and cumbersome creation

advance of exports was lower than that of im-

climate deterioration from regional markets.

of new ministries in the economic sector – a

ports. The chronicity of the deficit in foreign

The downward trend in export growth in

process that lasts between 3 and 6 months

trade led to a result of -22 billion euros.

2022 is global. For example, German exports

– and secondly, due to the limited available

are likely to increase by four percent this year

budgets. But at a macro level, a structural

crisis generated by the covid-19 pandemic.

compared to last year, and thus by just half as

recovery of the economy that doesn’t just

In fact, exports are still in trouble regionally.

much as last year, according to the Federa-

involve quantitative growth but also an im-

Romania's trade deficit also increased last

tion of German Industries (BDI).

provement of competitiveness is necessary to

This trend was global and it was due to the

year, and the export advance in 2021 reached 19 percent, mainly due to the base effect in

avoid losing out to other markets.

the context of the disastrous 2020. What will

EXPORT PROMOTION POLICY STILL PROBLEMATIC

happen in 2022? What are the trends domi-

Romania may have once had big plans when

MORE MONEY ON THE TABLE FOR GLOBAL VENTURES

nating international trade today and how are

it came to its export promotion policy, but

The value of venture capital and business

they impacting Romanian companies and the

today, the issue has been largely abandoned.

angel financing granted to Romanian tech

decisions of our business leaders?

As a comparison, other European countries

companies doubled in 2021 compared to

are increasing the role of economic diplo-

2020, which also significantly increased the

EXPORT GROWTH TO ERODE IN 2022

macy, and western authorities are coming up

number of global initiatives driven by domes-

According to Eurostat data, Romania's

with numerous programmes and measures

tic startups.

economic position will remain weak in the

to support exporters. For example, instead of

regional context, mainly as a result of the fact

the existing export promotion programme,

Romanian unicorn and they say that we

that Romania was the only country in the

where many issues related to internal con-

are at a historic moment that we’ve never

region with a significant (and growing) trade

trols have been discovered, no new solutions

experienced before. Forecasts are optimistic

deficit in 2021. Bankers are already anticipat-

have been proposed in the last year in Roma-

about the private capital that will finance the

ing a slowdown in annual export rates in 2022

nia to reform the export aid system. Regard-

expansion of innovative Romanian compa-

to levels well below 10 percent. The main

less of how well-intentioned the Romanian

nies in 2022.

Investors are now looking for the next

www.business-review.eu Business Review | February May 2016 2022

CONSTRUCTION COVER MARKET STORY 14 15

A SWOT analysis of Romania’s construction market in 2022 While 2021 brought the first major concerns for the local construction sector, 2022 began with several ominous signs, including price hikes for materials, a pause in approvals for new buildings in Bucharest, as well as a medium-term threat: the potential elimination of fiscal facilities for construction companies. A brief SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of the Romanian construction sector highlights internal and external risks as well as short and medium-term growth opportunities.

By Claudiu Vrinceanu region. Still, significant progress continues to be expected in the field.

OPPORTUNITIES One source of satisfaction is local administrations’ openness to digitalization and smart city projects.

Local public authorities are open to implementing digitalization solutions, but they lack funds and qualified staff. Meanwhile, big developers say they have the money and that they would support projects that could increase transparency and predictability and reduce response times from authorities.

Worker migration and the difficulties associated with recruitment affected construction companies last year

In general, the Bucharest construction market will experience a slow pace of development due to the city’s urban planning issues. The

STRENGTHS

is that even though it grows every year,

growth in construction activity will come

The biggest strength of Romania’s con-

Romanian companies in this sector have the

from new infrastructure projects (highways,

struction industry is related to the positive

lowest survival rate. Fewer than half of local

railways, etc.), therefore many large general

evolution of the real estate market, which has

construction companies still operate within

contractors will invest in machinery and

grown steadily amid conditions generated by

four years of opening, according to IBC Focus

infrastructure systems.

the pandemic, the changes in the labour mar-

data, so it is not easy to uphold a profitable

ket, and the general economic uncertainty,

business in the field.

all of which have led to a re-evaluation of real

Worker migration and the difficulties as-

THREATS The labour shortage in the construction sector

estate investment strategies. In this context,

sociated with recruitment affected construc-

was especially felt in the second half of 2021.

the outlook in the field remains positive, with

tion companies last year. Furthermore, price

Due to the ever-growing pipeline of projects,

the National Strategy and Forecast Commis-

increases for construction materials led to

market players are anticipating a severe crisis

sion predicting increases between 6 and 9

eroding profitability and delays in execution

in this segment. According to Graphein, while

percent over the next four years, above GDP

due to builders’ attempts to renegotiate con-

Romania will have a lot of money available for

dynamics. This development is feasible due

tracts with investors.

investments in infrastructure and digitaliza-

to the low cost of financing, the prospect for

Even as these cost increases are being

tion through the Recovery and Resilience

infrastructure development, and the imple-

passed on to investors, demand for construc-

Plan, it will struggle to find enough people to

mentation of programmes with the European

tion remains high. Half (48 percent) of the 100

carry out the work.

Union.

strongest builders in Romania are expect-

Labour shortages have been a major na-

ing higher workloads in the next 12 months.

tional problem for some time now. Romania

WEAKNESSES

Romania’s construction sector also has the

lacks workers, engineers, and qualified archi-

One weakness of the construction market

lowest level of technological innovation in the

tects to execute its development plans.

16 MAIN STORY

www.business-review.eu Business Review | February 2022

www.business-review.eu Business Review | February 2022

MAIN STORY 17

Romania’s strong economic growth in jeopardy amid inflation risks Before the pandemic, Romania’s economic performance was impressive. According to an OECD report, in less than 20 years, Romania reduced its GDP per capita gap with the OECD average by half, from nearly 70 to around 35 percent. The share of the country’s population which is at risk of poverty or social exclusion had fallen to 30 percent in 2020, from around 50 percent thirteen years earlier.

T

By Aurel Constantin

he pandemic crisis put a significant dent in the economy in

SLOWER ECONOMIC GROWTH

2020, as GDP fell by 3.7 percent before exceeding its pre-crisis

Economic growth slowed down considerably in Q3 2021, to 0.4

level in 2021. While growth remains strong (6.3 percent in

percent, from 1.5 percent in Q2, contrary to expectations. This makes

2021 and an estimated 4.5 percent for 2022 and 2023), significant

it likely for excess aggregate demand to shrink to a much lower-than-

risks are also on the horizon. The annual inflation rate climbed

forecasted value during this period, also due to the recent notable

to 7.94 percent in October 2021, from 6.29 percent in September,

downward revision of statistical data on the pace of economic

before falling to 7.80 percent in November under the impact of the

advance in H1 2021, which implies that the pre-pandemic GDP level

capping and compensation of electricity and natural gas prices for

was surpassed by a more modest margin in Q2.

households, thus mildly exceeding the forecast at the end of the first

Moreover, annual GDP dynamics saw a visibly stronger-than-

two months of Q4.

anticipated decline in

December’s inflation

Q3 (7.4 percent down

was at 8.2 percent, ac-

from 13.9 percent in

cording to central bank

Q2) while remaining

data. The increase

high from a historical

continued to be driven

perspective, mainly

mainly by exogenous

on the back of private

CPI (Consumer Price

consumption, but also

Index) components,

due to the unusu-

with major influences

ally large contribution

coming especially from

made by changes

the hefty hike in the

in inventories. On

prices of fuels, i.e. the

the other hand, the

non-petrol-diesel sub-

contribution of gross

group, and to a smaller

fixed capital formation

extent from higher

unexpectedly turned

VFE prices.

marginally negative

A temporary

for the first time in

slowdown in the recent upward inflation trend appeared after the

the past 11 quarters, mainly on account of a sharper contraction

enforcement of measures to compensate domestic consumers of

in capital repair works, which outweighed the impact of the slight

electricity and natural gas, which will also be reflected by the CPI

annual increases in new construction works and net investments in

inflation rate during the application of these provisions (November

equipment (transport equipment included).

2021 – March 2022).

Subsequently, in April 2022, as these measures expire, the annual

Net exports further made a negative contribution to annual GDP dynamics, yet this narrowed notably versus the previous quarter,

CPI inflation rate will reflect substantial increases, reaching 8.6 per-

even amid a somewhat faster decline in the annual change in exports

cent in the second quarter of 2022, a maximum in the forecast range.

of goods and services than that in imports thereof. However, trade

After that, the CPI inflation rate is expected to drop to 5.9 percent by

deficit deepened in annual terms at a much stronger pace in Q3,

the end of next year and to 3.3 percent in 2023.

given the relatively more unfavourable developments in the prices of

www.business-review.eu Business Review | February 2022

18 MAIN STORY

imported goods, while the current account deficit continued to see a

LOANS ON THE RISE

slowdown in the annual growth rate, albeit much more modest than

The annual growth rate of credit to the private sector rose further

in Q2, due to improved annual rates of change of income balances.

in double-digit territory October through November, reaching 14.1

Recent developments in high-frequency indicators point to a

percent on average, compared to 12.9 percent in Q3, given the pro-

standstill in economic activity in Q4 2021, in the context of the

tracted increase in the particularly strong dynamics of the RON-de-

fourth pandemic wave, the energy crisis, and supply bottlenecks,

nominated component, supported by government programmes, but

entailing the fall in annual GDP dynamics to a significantly lower

also on account of a mild step-up in forex loans. RON-denominated

value than that anticipated in November 2021.

loans saw their annual growth rate accelerate to 18.5 percent in this period, from 17.8 percent in Q3, with their share of the total widen-

WORSENING INCOME BALANCE Other relevant developments included the significant deceleration

ing to 72 percent in November.

According to current assessments, the annual inflation rate is

seen in October by the annual growth rates of retail trade, sales of

likely to rise gradually over the months ahead, under the impact

motor vehicles and market services to households, the plunge in

of supply-side shocks, exceeding the values shown over this time

industrial output, and the shrinking portfolio of manufacturing or-

horizon by the medium-term forecast of last November. Behind the

ders versus the same period of the previous year. At the same time,

worsening of the short-term inflation outlook stand the expected

the volume of construction works posted a more rapid year-on-year

higher increases in electricity and natural gas prices—even amid

decline in October owing to developments in the non-residential segment and civil engineering works, whereas exports of goods and services recorded a considerable drop in their annual change, much more pronounced

the implementation of measures to compensate and cap such hikes—as well as in processed food prices, mainly due to the advance in energy and agri-food commodity prices. Their impact is likely to amplify and

than that in import dynamics, which led to

further prolong the positive deviation of the

a further step-up in the annual rise in trade

annual inflation rate from the upper bound

deficit. Against this background, but also as

of the variation band of the target, espe-

a result of a notable worsening of income

cially after the measures to compensate and

balances, the current account deficit saw

cap energy price increases cease, but also to

its widening trend in annual terms re-

trigger disinflationary base effects over the

accelerate strongly, with its cumulative value

longer time horizon.

for the first 10 months of 2021 exceeding that reported in the same period of 2020 by around 58 percent.

In September and October 2021, labour market developments reflected influences from the worsening

However, significant uncertainties still linger over the effects of temporary measures to compensate and cap price hikes for electricity and natural gas for households, as well as over how they will be assessed and included in the CPI calculation. More-

epidemiological context and tighter mobility restrictions, as well

over, uncertainties and risks continue to stem from developments

as those from more severe disruptions in global supply chains and

in commodity prices, particularly those of energy and agri-food, as

sharp increases in energy and other commodity costs. As a result,

well as from bottlenecks in global production and supply chains.

the number of employees economy-wide ceased to rise in September

At the same time, the evolution of the pandemic and the associ-

and went up marginally in October, very slightly exceeding the pre-

ated containment measures adds a major element of uncertainty and

pandemic level. Moreover, in September, the unemployment rate

risk to the forecast, at least over the short term, amid the nationwide

reversed only part of the significant increases seen in the previous

infection growth rate generated by the more contagious Omicron

two months, while in October it remained unchanged, hence staying

variant, the insufficient progress of the vaccination campaign, and

visibly above pre-pandemic values.

the potential impact of this wave on Europe’s economies, which are

Looking at the financial market, the main interbank money

also being hit hard by the energy crisis and the persistent supply

market rates went further up at a relatively fast pace in November

bottlenecks. Uncertainties and risks also continue to be associ-

and December 2021, hitting 21-month highs amid the new policy rate

ated with the fiscal policy stance, given, on the one hand, the 2021

hike and tight liquidity conditions and expectations of a further in-

government deficit that was potentially smaller than the target and,

crease in the key rate, also strengthened by regional developments.

on the other hand, the co-ordinates of this year’s approved budget

Yields on government securities continued to rise as well, albeit at

programme, aiming at a step-up in fiscal consolidation in line with

a relatively slower pace, in the context of abating political tensions

the commitments under the excessive deficit procedure, yet in a

and the mixed behaviour of long-term government bond yields in

challenging economic and social environment both domestically

advanced and emerging economies, remaining significantly above

and globally. Yet another source of uncertainty and risk has to do

those in the region across the entire maturity spectrum. At this

with the absorption of EU funds, especially those under the Next

juncture, the EUR/RON exchange rate stayed relatively stable at the

Generation EU programme, which are conditional on fulfilling strict

higher readings recorded at the end of Q3 2021.

milestones and targets for approved projects.

www.business-review.eu Business Review | February 2022

MAIN STORY 19

Sectors to watch in 2022 Automotive. Car-sharing. Technology. Real estate. Retail. What do all these sectors have in common? According to pundits, they will be Romania’s star sectors this year. And since they are also some of the biggest employers on the local market, Business Review sat down with several company representatives and HR specialists, who helped us predict this year’s most important developments on the local labour market and understand what companies should do to ensure personnel retention, as employees are reviewing their work-life balance these days, being most interested in flexible work models.

www.business-review.eu Business Review | February 2022

20 MAIN STORY

CAR SHARING IS ON A ROLL

are getting the company’s full portfolio of services, from ride hailing

Last year, the local car market operated under major pressures gener-

to scooter renting and food delivery.

ated by both the pandemic and the global semiconductor crisis. In

“We will continue our expansion in the country in 2022, as well

mid-2021 the latter crisis deepened even further, forcing car makers

as add new services that will leverage our platform further. The flex-

to constantly adjust their output as they were confronted with a se-

ibility of the gig economy business model and its ability to fulfill ob-

ries of component shortages. And even though they tried to optimise

jective customer needs are features that have become critical during

deliveries for existing orders, delivery time for cars varied between

the pandemic, and they will continue to fuel our growth,” he says.

three months to a year.

Salceanu adds that since it’s part of a young industry, Bolt Romania

But despite all the struggles of the global automotive sector, the

keeps in close contact with authorities in all the cities where it oper-

personal car will remain the top choice when it comes to mobility

ates, assisting them in setting up the proper legal framework to allow

in the European Union, according to the 2021 Digital Auto Report

its services to benefit both its partner drivers as well as its riders and

released by PwC’s global strategy department last year. “Consumers

customers.

are more and more preocupied with their health and safety and will

“Bolt's mission is to build cities for people, not cars, and to pro-

continue to use their personal cars after the pandemic extinguishes.

vide more environmentally-friendly alternatives for mobility—be it

According to ACEA, despite the semiconductor crisis, the EU market

scooters, electric vehicles or other shared services. Leveraging the

posted an increase of over 11 percent during January-August 2021

experience we have accummulated in over 20 cities all around the

compared to the similar period of 2020. Romania aligns with this

country—and in more than 40 other countries across Europe and

trend, with a 7 percent increase in the same period, with the advance

Africa—will hopefully put us in an even better position in the future,

largely being generated by the Rabla programme,” said Daniel

as a solid partner for urban mobility,” Salceanu concludes.

Anghel, Partner and Leader for the automotive industry within PwC Romania.

REAL ESTATE IS ADAPTING TO THE NEW PARADIGM

The 2021 Digital Auto Report also shows that in light of the

It’s becoming increasingly clear that companies won’t give up on

changes generated by the pandemic, European rolling stock will stag-

their physical offices, because employee engagement, organisational

nate by 2035 to 281 million vehicles, after the previous edition of the

culture, creativity, and motivation thrive on physical presence.

report had predicted a decrease of 1.2 percent. Meanwhile, alterna-

Most of them are expecting a massive return to the office during the

tives to the personal car such as car sharing and rent-a-car platforms

second quarter of this year, so they have already started to remodel

will post the highest advance in the future, says the same report,

their spaces and have adopted a hybrid work model.

which notes that the market share of alternative mobility solutions

“There is still plenty of demand in the office segment, and after

will reach 10 percent in 2025 and 21 percent in 2035, while the usage

a period of apparent stagnation on the market, with developers and

of personal cars will drop from 92 percent in 2021 to 87 percent in

companies placing their operations on hold, 2022 should be a much

2025 and 72 percent in 2035.

more dynamic year. Since the end of 2021, we’ve seen a reactiva-

“Bolt represents the new urban mobility and micromobility,

tion of development plans from companies in our premium office

which in itself is a rather recent trend that has been growing con-

space portfolio, and we believe this tendency will grow stronger this

stantly over the past years,” says Cristian Salceanu, Country Manager

year,” says Raluca Munteanu, Development Director at Iulius. The

at Bolt Romania. He adds that as of last year, the company became

company operates in Iasi, Timisoara, and Cluj-Napoca, cities that

market leader in Romania, operating in over 20 cities, many of which

are known for attracting young talent for software development, re-

Fulga Dinu, Country Manager for Operations at Immofinanz Romania “A great deal of emphasis shall also be placed on the impact of real estate on the environment. In this sense, as one of the leading commercial real estate companies in Europe, Immofinanz will become emissionfree in the future.”

Lucian Enaru, Country General Manager at Schneider Electric “The new circumstances have taken the need for automation and energy efficiency higher on the public agenda as well as on the business agenda. Accelerating automation is what will drive the future of industrial business and supply chain.”

Adrian Ariciu, CEO of Metro Romania “The main challenge for the Romanian retail sector may come from potential consumption shocks following the decline in consumers’ financial resources. As a result of price increases, consumers will look for the cheapest products in each category.”

www.business-review.eu Business Review | February 2022

MAIN STORY 21

search, and technology centres. “The health crisis has been a driver

ing Green Development and Developer of 2021” title for Business

of growth for some businesses in these areas, amid increasing digi-

Garden Bucharest, an award that confirms this project’s state-of-the-

talization in multiple sectors, including government and healthcare.

art technical details and recognises Vastint’s efforts to introduce a

As a result, the workload has been much higher and hundreds of jobs

standard to which everyone else on the market can relate, making it

have been created,” she adds.

easier to prove to tenants that its offices are safe places to carry out

In Munteanu’s view, another trend impacting office space demand is the automobile industry’s shift of focus towards electric

their work.

Asked about the challenges faced by the local real estate sector

models, autonomous driving, increased user safety, as well as a

this year, Raluca Munteanu of Iulius says that the top challenge for

diversification of car features and functions, which has led to the

most areas of real estate will be adapting to the new paradigm of

emergence of new companies across Europe, including in Romanian

social behaviour. Even before the pandemic, things were shifting

cities with a tradition in automotive development and research.

towards better quality of life, connecting with nature, and dedicat-

“For Immofinanz Romania, it will be an intense period in the

ing more time to personal experiences, but all of these tendencies

office segment, as we are preparing to launch myhive flexible offices

became even stronger in this new reality, which forced us to pause

as well as to continue expanding the implementation of the myhive

and regroup.

concept in our office portfolio,” says Fulga Dinu, Country Manager

“Since alignment with the new demands must be as fast as possible, we believe that projects that anticipated this direction, such as

for Operations at Immofinanz Romania.

Having anticipated the hybrid work trend even before the pan-

urban regeneration projects that strongly connected to community

demic, Immofinanz started to work on a complimentary business

life and played a role in the development of cities, have a competi-

module that would provide flexible and tailor-made office solu-

tive advantage. And while adaptation has been the central principle

tions and an overall upgraded office experience. “The new myhive

in the real estate business over these past two years, we’re now

concept is the most flexible so far and it offers tailored solutions to

seeing a shift towards proactivity, anticipation, and vision, all with a

tenants who are facing increasingly dynamic circumstances. This

focus on social experience,” she says.

new component, based on complete flexibility, brings an upgrade

In addition, a mix of fluctuating factors like the health and energy

and an extremely varied range of options to customers, in order to

crises, inflation, rising prices for building materials, supply chain

accommodate almost any need. Tenants can sign long-term or short-

and logistics issues, etc., will continue to generate a major pressure,

term contracts, benefit from all-inclusive rental services, relocate

and the variables here are innumerable in terms of the challenges

within the myhive portfolio or expand/contract their leased premises

they pose and the strategies companies can employ to deal with

on a monthly basis,” says Dinu. The myhive flexible offices concept

these challenges.

will be inaugurated in the myhive S-Park building in March 2022. At

Last but not least, in the Iulius representative’s view, ESG (Envi-

the end of this year, the company will also open the myhive Victoria

ronmental, Social, and Governance) policies will be playing an ex-

Park building, now undergoing a refurbishment process.

tremely important role, gaining traction across the board, and they

“On a positive note, but still maintaining caution and objectivity

will count in financing, partnerships and business relationships, as

due to the potential evolution of the pandemic, we are carrying on

well as in the consumer experience. “ESG criteria are driving devel-

with business as usual and hoping for higher office attendance in

opers to more responsibly evaluate any future investment in terms

2022,” says Antoniu Panait, Managing Director at Vastint Romania.

of its relationship with nature and how it can cultivate a socially

2022 started out great for the company, as it received the “Lead-

healthy environment, while also paying more attention to the organ-

Bogdan Constantinescu, Managing Director at ASBIS Romania “As we are all spending more time in our homes, another need that has boosted sales in consumer technology has been the need for entertainment.

Both trends will continue, as people will continue to claim the right to work from home.”

Cristian Salceanu, Country Manager at Bolt Romania “We will continue our expansion in the country in 2022, as well as add new services. The flexibility of the gig economy business model and its ability to fulfill objective customer needs are features that have become critical during the pandemic.”

Florin Godean, Country Manager at Adecco Romania “The low unemployment rate and the workforce shortage in manufacturing, hospitality, transportation, logistics will continue in 2022.

More companies will focus their employee retention efforts on developing a benefit package that includes flexibility in the work schedule, wellbeing, and remote work.”

www.business-review.eu Business Review | February 2022

22 MAIN STORY

isational structures. All these elements ensure that the non-financial

of location, amenities, facilities, finishes, and nearby opportunities,

impact of an investment is more sustainable. Ultimately, all of this

if it has nature inserts, is built in a sustainable manner, and makes

has to do with a healthier and safer way of life, today and in the

our lives easier and safer, then the market will support it. “In our

future,” Munteanu argues.

field, we choose to focus on two categories of developments. We be-

Along similar lines, Dinu of Immofinanz thinks that the most

lieve that experience, entertainment, and diversity oriented regional

significant challenges of the near future will be highlighting the

projects will see continued growth, and so will retail parks, which

benefits of social interaction and environmental awareness. “A great

are set to become champions in terms of efficiency, as they provide

deal of emphasis shall also be placed on the impact of real estate on

convenience. However, projects that fall somewhere between these

the environment. In this sense, as one of the leading commercial real

categories will suffer due to their failure to provide relevant services

estate companies in Europe, Immofinanz will become emission-free

for increasingly demanding consumers,” she explains.

in the future. As an immediate step towards this goal, we will com-

“Generally, real estate will be required to focus on people’s needs

mence the refurbishment of Bucharest Financial Plaza by transform-

more than it has done in the past; in other words, it will have to

ing it into a high-quality and green myhive building with a gold

provide safe, cozy, flexible, and enjoyable office spaces or, if we’re

sustainability certification,” Dinu says.

talking about retail, an outstanding 360-degree shopping experience

Meanwhile, Panait of Vastint talks about the challenges of the local real estate market from a psychological perspective, given the

that should also factor in the leisure and family components,” Fulga Dinu adds.

negative impact that the pandemic has been having on all of society.

“Recent research into new working arrangements, especially looking

SPEEDING UP DIGITALIZATION AND SUSTAINABILITY

at the effects of working from home, has found greater emotional

Technology has seen accelerated progress, especially in the pan-

exhaustion and cognitive stress associated with reduced social

demic context, which is bridging all the gaps to a more digitalized

support from colleagues,” Panait notes. He adds that the quality of

world. “Over the past couple of years, it’s been essential for us to

relationships, whether professional or personal, has also decreased.

consolidate and enhance our financial strength as well as ensure

Furthermore, the concept of mentorship has been devalued within

good market coverage and substantial sales volumes, in order suc-

teams, often leading to a decrease in productivity, which in turn

cessfully navigate through all the temporary production shortages

resulted in a low quality of life and caused difficulties with profes-

and logistics challenges while still capturing growth,” says Bogdan

sional adjustment for some employees.

Constantinescu, Managing Director at ASBIS Romania.

Additionally, the rise of the construction materials prices, as well

He says that on the business side, there’s been a clear accelera-

as workforce disponibility and costs, are very important issues for

tion of the digitalization process, while online migration has literally

developers who will have projects on going in the coming period.

brought the world closer together. “Collaboration solutions that

Many parts of the market are still volatile and this affects business

are bringing people from all over the country or the world together

decisions in the short and medium term, considering the fact that

have become part of the new normal. We therefore expect video-

there’s been no increase in terms of rents and revenues,” Panait

conferencing equipment to be present in most companies and most

adds.

offices.”

As for the most dynamic segment of the local real estate sector,

Elsewhere, in the consumer segment, we have seen a consider-

Raluca Munteanu says that whether it’s a mixed-use, office, retail or

able rise in demand for equipment that enables people to work

residential project, as long as it meets realistic expectations in terms

and/or study from home. “As we are all spending more time in our

Madalina Racovitan, Tax Partner and Head of People Services at KPMG in Romania “We expect business leaders and HR teams to remain positive and creative about finding new ways to build connections with their employees and to work together to redesign people processes (recruitment, onboarding, reward and performance management) and respond to new working principles.”

Antoniu Panait, Managing Director at Vastint Romania “The rise of the construction materials prices, workforce disponibility and costs are important issues for developers who will have projects on going in the coming period.

Many parts of the market are still volatile and this affects business decisions in the short and medium term.”

Sorina Donisa, CEO of APT “Now, more than ever, companies have the opportunity to promote their employer brand by investing in wellbeing or personal and professional development programmes.

This will lead to a growth of the training and organisational development consultancy market.”

www.business-review.eu Business Review | February 2022

MAIN STORY 23

homes, another need that has boosted sales in consumer technology

new players emerging, especially in the quick commerce segment,

has been the need for entertainment. Both trends will continue, as

which will lead to even stronger competition. Growth and expansion

people will continue to claim the right to work from home, at least

is expected as well, particularly in the proximity, online, and express

partially, having experienced the benefits of this practice,” Constan-

delivery services segments.

tinescu says. He adds that the public sector has also been making

“At the same time, it will be a difficult year, with quite a lot of

quick progress in the area of digitalization. “I believe the process

turbulence, given the inflationary context which has a direct impact

should continue there. Government institutions and authorities

on Romanians’ purchasing power, and that overlaps with the health

have had to operate and communicate with each other and with the

crisis we have been experiencing for two years now. Prevention

private sector in an online environment, and that situation has cre-

measures are still limiting people’s access to shopping centres,

ated new workflows and new procedures and has required more IT

severely affecting retailers in department stores, where most local

equipment and support.

producers are listed,” Danetiu notes. As for the company’s plans for

In turn, Lucian Enaru, Country General Manager at Schneider

2022, he says that it will continue development on the proximity

Electric, says that one of the few positive outcomes of the pandemic

segment, both through its nationwide partnership with OMV Petrom

has been the unprecedented technological advancement within a re-

as well as through a new large supermarket format. “In addition, we

markably short period of time. “The new circumstances have taken

will take our commercial project to a new level to better adapt to

the need for automation and energy efficiency higher on the public

local premises and to the needs and expectations of our customers.

agenda as well as on the business agenda. Accelerating automation

We’ll also expand the company’s digital transformation, as well as

is what will drive the future of industrial business and supply chain.

continue to simplify the buying process both online and in-store, to

Automation-centric technology and solutions can deliver greater

create a great customer experience.”

efficiency and sustainability. As a result, our technologies and solu-

For his part, Metro Romania CEO Adrian Ariciu says that that digi-

tions have become very sought after, and this is a trend that will

talization and e-commerce will remain top targets in 2022, as these

continue in 2022.”

are essential strategic approaches to meeting consumers’ needs and

Since a sustainable future requires sustainable energy, organ-

improving their experiences, but these will only be able to evolve

isations are becoming more and more aware of the need to keep a

alongside optimised and streamlined logistics. “Another trend in

tight grip on their energy consumption. They are also more actively

retail will be the adoption of circular economy principles,” he notes.

seeking flexible, scalable, greener, and safer solutions for their build-

Economically, we are facing an increase in food prices, with the

ings, as we have all seen lately that the future can bring unexpected

cost of the average shopping cart likely to rise by up to 10 percent in

events for which we need to be prepared. “Schneider Electric Roma-

the coming months. In the production cost structure, this translates

nia is ready to support them with a variety of solutions, from micro

to an impact that’s already being felt in logistics, transport, wage

data centres to complex electric infrastructure, and from automa-

increases, auxiliary materials, packaging or non-food products.

tion solutions to power supply solutions. We also believe that energy

“The main challenge for the retail sector may come from potential

management is key in improving sustainability,” Enaru adds.

consumption shocks following the decline in consumers’ financial resources. As a result of price increases, consumers will look for the cheapest products in each category,” Ariciu predicts.

RETAIL SEEING FIERCER COMPETITION IN 2022 According to Tiberiu Danetiu, Marketing Director at Auchan Roma-

This year, Metro Romania will focus on the expansion of the La-

nia, 2022 will be a year of developments on the retail market, with

DoiPasi franchise, which currently has 1,698 stores nationwide. “Our

Raluca Stefanescu, Social Media Recruitment Marketer Dora Happy Recruiter “Companies that will find the solutions for their difficulties in 2022 and those that will learn how to use technologies, will be able to make this year a success.

Yet, some companies won’t keep up and they will have a very challenging year.”

Tiberiu Danetiu, Marketing Director at Auchan Romania “2022 will be a difficult year, with quite a lot of turbulence, given the inflationary context which has a direct impact on Romanians’ purchasing power, and that overlaps with the health crisis we have been experiencing for two years now.”

Raluca Munteanu, Development Director at Iulius “There is still plenty of demand in the office segment, and after a period of apparent stagnation on the market, with developers and companies placing their operations on hold, 2022 should be a much more dynamic year.”

www.business-review.eu Business Review | February 2022

24 MAIN STORY

goal is to reach 2,000 stores by 2023 and maintain our position as

make a complete career shift. “Employees’ demands will have to do

the largest network of independent stores in Romania. The company

with more than just a paycheck, and they’ll be looking for a strong

will continue its digital transformation in order to improve internal

purpose, clear strategy, and meaningful employee experience,”

processes, as well as develop a digital ecosystem for its professional

Racovitan thinks.

customers and its innovations on the assortment line. “Moreover, we

According to Sorina Donisa, the CEO of APT, companies will

will invest in implementing projects based on renewable energy and

invest more in training and development programmes for their

carbon footprint reduction. For example, we plan to install a photo-

employees, helping them complete their skillsets. “Hybrid work will

voltaic plant on the Metro Baneasa store building that will allow us

become a normality as it is preferred by the majority of candidates

to produce green energy. This pilot project will reduce our consump-

and employees. We will therefore witness a high turnover of person-

tion of fossil fuel-based energy by 15-20 percent,” Ariciu explains.

nel, magnified by the fact that it is now easier for candidates to make a career change, leveraging the hybrid work model,” Donisa argues.

HR: 2022 COULD BE A PRODUCTIVE YEAR

She adds that 2022 will be the year when we will see the emerge of

Looking at the Romanian talent landscape in 2022, Madalina Raco-

a new market for products designed to increase employee engage-

vitan, Tax Partner and Head of People Services at KPMG in Roma-

ment and measure the performance of those working from home.

nia, says that there are several factors that will continue to have a

“Now, more than ever, companies have the opportunity to promote

major influence on companies’ priorities. “These are related to the

their employer brand by investing in wellbeing or personal and

exponential evolution of technology, which is impacting all industries and functions and generating an overhaul of processes, working practices, and occupations. Remote working has generated a different set of behaviours and mindsets, and meanwhile we’re also seeing the rise of the GenZ workers, who have different expectations from their workplaces, their careers, and their leaders,” she says.

Meanwhile, Florin Godean, Country Manager at Adecco Romania, says that this year is going to be marked by a lot of uncertainty in terms of both the labour market as well as the wider economic conditions. “A phenomenon that will continue in 2022 is the low unemployment rate and the workforce shortage in certain industries such as manufacturing, hospitality, transportation or logistics. In addition, more and more companies will start focusing their employee retention efforts on developing a benefit package that includes flexibility in the work schedule, wellbeing, and remote work.”

The pandemic has its ups and downs, and the associated regulations and restrictions will continue to influence the labour market.

“There are hopes that 2022 will be the year when things finally settle down, allowing all industries to recover and start anew. However, the workforce crisis is something that we will be experiencing this year as well. Things that could deepen the crisis even further would be people migrating to other EU states in search of higher salaries or new restrictions on mobility to limit pandemic waves,” Godean adds.

Raluca Stefanescu, Social Media Recruitment Marketer at Dora

professional development programmes. This will lead to a growth of the training and organisational development consultancy market.”

Happy Recruiter, says that 2022 could be a very productive year for

Donisa also notes that companies should be aware of the fact that

companies that are able to adapt to the market dynamics. “Compa-

salaries payments are going up right now, so they should consider

nies that will find the right solutions for their difficulties in 2022,

diversifying their benefits package to respond to higher workforce

as well as companies that will quickly learn how to use available

demands, the development of online services that require technical

technologies, will be able to make this year a success. But like in any

skills, and the rising inflation.

period of transition, some companies won’t be able to keep up and they will likely have a very challenging year.”

One thing is for sure: employees will continue to expect flexibility

Last but not least, companies will need to actively listen to employees’ voices and make sure that communication channels are open at both ends. “We expect business leaders and HR teams

in all forms, from workspaces to delivery hours and available tools.

to remain positive and creative about finding new ways to build

Plus, behavioural changes have also given way to some new atti-

connections with their employees and to work together to redesign

tudes regarding work-life balance, and people have started to rethink

people processes (recruitment, onboarding, reward and performance

their personal and family habits, priorities, and career aspirations.

management) and respond to new working principles,” Racovitan of

As a result, we might see a higher number of people planning to

KPMG concludes.

www.business-review.eu Business Review | February 2022

MAIN STORY 25

Alpha Bank transforms payments on delivery The pandemic has accelerated the ecommerce evolution in Romania and banks that wanted to meet the needs and expectations of customers have been even more motivated to develop new technologies to support dynamic businesses. Viorel Vasile, Cards Unit Director at Alpha Bank Romania, talks about the evolution of card on delivery payment and about Alpha PhonePOS, the first banking application launched in the Romanian market which transforms an Android mobile device into a POS terminal.

How does Alpha Bank support businesses which imply delivery payments through the development of new technologies?

In this regard what can you tell us about Alpha Phone POS?

Station (Gara de Nord) line and on several other lines in the country.

attention some time before the pandemic

What is Alpha Bank’s strategy in increasing the trustworthiness of its customers in its payment solutions developed both in online and offline?

set in our lives and influenced our con-

If on the offline channel we will continue

sumption behavior with impact in the

to focus on extending the Alpha PhonePOS

ecommerce sector. This was especially due

solution and on kiosk &unattended pay-

to the consistent weight of cash on deliv-

ment integrations, as regards the online

ery, the preferred payment option for local

channel, we have implemented, for the first

consumers. Attempts to convert this field

time in Europe, an Instant Refund solution

The payment on delivery issue caught our

to digital payments have existed before, but

meant to increase the level of trust of those

without much success given the fact that these attempts addressed

who do online shopping through a safe, simple and fast money back

the problem through traditional POS terminals that involved manual

process (maximum 30 minutes versus traditional return which can

handling of an additional device. At that time, we began to look for

take up to 14 days). In addition to these enterprise solutions, at the

alternative and viable technologies that would facilitate payments

same time, for the cards issued by Alpha Bank we have provided a

for the dynamic businesses. Thus, given the mass adoption of con-

biometric transaction authentication application (Alpha Pay Online)

tactless technology in Romania and the obvious trend of dematerial-

and we constantly monitor the improvement of anti-fraud rules in a

ization of card payments by migrating to mobile devices, we focused

dynamic approach, simultaneously with promoting consumer edu-

our efforts to launch a SoftPOS app and we placed Romania on the

cation campaigns to perform payments in a secure context.

map of the first 10 countries in Europe who have benefited from this innovative technology.

How do you see the future of online payment solutions in Romania?

What is the impact of such services that Alpha Bank develops for its customers?

As payment infrastructure providers, we need to focus on provid-

As expected, Alpha PhonePOS has changed the way payments on de-

an increased focus on the analysis and use of data to improve the

livery are viewed. By installing the payment application on a device

customer payment experience by extending card-on-file or token-

already present at the level of a courier, together with an integration

use solutions, but also with the aim of preventing the financial

at the level of applications that simplifies the experience in use, the

fraud. Another visible trend that we believe will be accentuated

card payments on delivery have started to become as they should be,

is the growth of online shopping made from mobile devices and

simple and efficient. Alpha PhonePOS has also created new oppor-

especially from mobile applications, which creates the opportunity

tunities for a whole range of liberal professions in many other fields,

to personalize shopping through targeted campaigns and methods of

that have often surprised us with their enthusiasm of embracing this

payment. And we are committed to provide the necessary payment

new payment technology. Lawyers, notaries, healthcare services,

infrastructure for these integrations. At the same time, I believe

handcrafters, taxi drivers, all requested to use the new payment

that in the near future we will be able to see new payment methods

service. Also, in the public transportation, the solution ensures card-

derived from the adoption of open-banking, if they will manage to

assisted payments on the Otopeni Airport- Bucharest North Train

satisfy the experience and financial requirements of the market.

ing simple and secure payment experiences. In the future, I rely on

www.business-review.eu Business Review | February 2022

26 ENTREPRENEURSHIP

Pandemic economy continues to shape local startup industry in 2022 Funding for Romanian startups might reach EUR 200 million this year as more specialised investors could appear on the local market. Trends that have emerged since the beginning of the pandemic will continue to shape the development of the local startup ecosystem this year, while the ongoing digitalization of businesses will generate fresh demand for innovative products and services launched by Romanian entrepreneurs.

By Ovidiu Posirca

Funding volumes for Romanian startups might top EUR 200 million this year

L

ast year’s biggest funding deal was

with Romanian roots belonged to UiPath. The

targeting Romania, suggests Dan Mihaescu,

closed by FintechOS, the Romanian

Robotic Process Automation startup got USD

Founding Partner of GapMinder VC. He

startup developing a digital bank-

750 million in funding before going public.

estimates that some Romanian-born startups could attract between EUR 110 - 150 million

ing and insurance platform. The company

in 2022.

spring to consolidate its presence in Europe

DIGITAL AND DATA MANAGEMENT DRIVING PANDEMIC ECONOMY

and expand to new markets. Meanwhile, the

This year, we might see higher investments

umes at all levels this year: the two major an-

biggest investment attracted by a startup

from funds with a regional or European focus

gel investor associations should become even

got USD 60 million in Series B funding last

“We also expect a sheer increase in vol-

www.business-review.eu Business Review | February May 2016 2022

ENTREPRENEURSHIP COVER STORY 14 27

more active and attract new members; and

banking,” Dudoiu told BR. Startups are

environment could be disrupted by the per-

the same will happen with the two crowd-

also supported by Romania’s position as an

sistent inflationary pressure and the moves

funding platforms. New accelerator-type

outsourcing market for banking and fintech

by central banks across the continent to hike

funds might emerge as part of the Recovery

software development.

interest rates.

and Resilience Plan (PNRR) towards the end

“Romania has consolidated its position

OMERS Ventures managing partner Harry

of the year, and a couple of new early-stage

as a world class technology hub in the past

Briggs estimates that startups and investors

funds might also appear,” Mihaescu told BR.

five years, and this was acknowledged by the

should expect the rate of growth in capital invested to be slower this year than in 2021.

Meanwhile, Andrei Dudoiu, managing

EU when Bucharest was picked as the host

partner & president of the Board of Directors

of the European Cybersecurity Competence

at crowdfunding platform SeedBlink, expects

Centre. This dynamic has a tremendous

money to be made, but we're starting to see

the volume of seed investments (up to Series

positive impact on the local startup scene,

a re-rating of the stock market and of some

B rounds) to more than double and hopefully

opening our market up to more investment

tech companies. And if interest rates rise as

exceed EUR 200 million, compared to the

opportunities, which in turn will contribute

expected, people will not be searching for

estimated EUR 85 million in 2021.

to more growth and focused

He explains that in just two

development,”

“There are still huge opportunities and

yield quite as desperately as before,” said Briggs, according to pitchbook.com.

years, the pandemic crisis has also led to rising

Europe has already

risk levels associated

consolidated its position as one of the

with internet use, which translates

most influential

to saturation and a

markets for startups,

push for more effec-

with significant

tive cybersecurity

growth potential.

solutions. In turn,

Some 65 European

this has generated

cities had at least one startup with a valuation

opportunities for new

topping USD 1 billion. The

entrepreneurial endeavours.

“The pandemic has determined an accelerated integration of ‘digital’ and ‘data management’ into business operations – we’re seeing the growth of e-

Alexandru Balaci, the CEO of fintech Revo Technologies Romania, tells BR. This all comes after a year in which fund-

distribution is spread wider than in the US, where there are 42 cities with unicorn startups, according to a report by dealroom.co.

commerce, remote work and collaboration,

ing across Europe reached a record of USD

leisure, entertainment, learning, healthcare

121 billion, according to Atomico data. Seed

activities, as well as the automation of real-

and angel investments alone totalled USD 8.4

TRENDS TO WATCH FOR ROMANIAN FOUNDERS

world activities, with major innovations in

billion, while early-stage rounds amounted

The foundation of the startup ecosystem

supply chain management, logistics, and

to around USD 34 billion. But the investment

– acceleration and incubation programmes –

www.business-review.eu Business Review | February 2022

28 ENTREPRENEURSHIP

remains quite fragile, which translates into a

is one industry vertical that has the potential

limited number of startups that are actually

to grow further in CEE. “I also see blockchain

interesting for active investors in a particu-

technology and the gaming industry getting

cycle for 3-4 years already, and meanwhile it

lar market, suggests Ionut Tata, CEO of the

hot in the near future,” he says.

remains unclear how we should be co-exist-

on B2B startups in the deeptech niche.

“We have been at the end of this macro-

ing with the pandemic on the long run, and

Iceberg+ consultancy and leader of entrepreneurship taskforce in the Coalition for

PUSHING FOR GROWTH IN 2022

inflation is starting to hit various economies

Romania's Development. He adds that energy

The outlook for this year is positive, with

in different ways,” he explains.

and cleantech are some of the sectors with maturing startups that have started showing not only promising valuations, but also interesting returns on investment (ROI).

According to Tata, founders should also be aware of the increased availability of public funding, including direct funding from the EU, which will support startups and ease management operations in bureaucratic terms.

“The first step has already been taken as .Lumen received over EUR 9 million through the European Innovation Council (EIC). We should look at this as being only the tip of the iceberg, since there are up to 25 other Romanian startups at a similar level of eligibility and competitiveness that just need to make a move towards the EIC,” the CEO told BR. The

startup fund representatives telling BR that

Cluj-based startup secured EU funding to de-

they will continue to search for promising

lion in a number of rounds to support exiting

velop glasses for the blind with a technology

startups that can scale up fast.

portfolio companies and new startups.

that is able to understand the environment and give feedback using sound and impulses.

Dudoiu of SeedBlink adds that AgriTech

Speaking about GapMinder’s targets for

The fund aims to invest about EUR 10 mil-

His advice for startup founders in the

this year, Mihaescu says he is both optimistic

pandemic economy is to “be very careful

and cautious as the fund continues to focus

on betting everything on totally replacing

www.business-review.eu Business Review | February May 2016 2022

ENTREPRENEURSHIP COVER STORY 14 29

something rather than substantially improv-

the-art proprietary technology that will help

according to Atomico data. China, mean-

ing existing models.”

investors with knowledge and education as

while, recorded only 26 entrepreneurial

well as with better communication and en-

companies with valuations above USD 1 bil-

gagement between founders and sharehold-

lion due to a wider legal crackdown on tech

ers,” says SeedBlink’s managing partner.

giants.

“The same can be said about thinking everything will go back to normal in a couple of quarters,” he adds.

Elsewhere, Revo Technologies is looking to develop in key markets across Central and Eastern Europe. The fintech plans to expand its partnerships with retailers, e-commerce platforms, and payment service providers.

“As for Romania, we intend to continue expanding our business based on our leading position on this market. The plan is to invest in building partnerships with top Romanian and international traders that operate in Central and Eastern Europe and to collaborate with top e-commerce payment services providers,” says Balaci.

After recording an investment volume growth of 400 percent in 2021, SeedBlink remains committed to the most funded verticals, ranging from enterprise software to SaaS, EdTech, and FinTech.

Dudoiu explains that growth drivers for Romanian innovation include data-driven customer experiences, cybersecurity, artificial intelligence, robotic process automation, and decentralised finance.

“We continue to improve our scouting and vetting processes to create more opportuni-

“Europe’s stability is a great foundation

EUROPE’S GROWING PROFILE IN THE GLOBAL STARTUP INDUSTRY

for building a healthy tech ecosystem, and

One parameter that gauges the competitive-

said Atomico partner Tom Wehmeier, quoted

ness of an economy is the number of unicorn

by the Wall Street Journal. On valuations,

that has become more apparent recently,”

European startups are still playing catch up with US firms. Last year, the median valuation of a startup in Europe was USD 24 million, compared to the US’s 115 million, according to Atomico. Valuations have grown on both markets in recent years, but the gap has remained largely unchanged.

EUR ties for the investment community. We are

startups it can generate. Europe has already

expanding our network of European part-

surpassed China and is only lagging behind

ners, VCs (venture capitalists) and Angels to

the United States in creating startups valued

support startups as co-investors and provide

at more than USD 1 billion.

them with new opportunities for upcoming rounds. We are also developing our state-of-

In 2021 alone, there were 98 new unicorn startups in Europe, while the US added 384,

200

mln

estimated startup investments in Romania in 2022, according to SeedBlink’s Andrei Dudoiu

www.business-review.eu Business Review | February 2022

30 AI

2022 tech trends: from AI and smart homes to fitness gadgets and digital seniors Technology has become an essential part of our daily lives, especially in urban areas, where we cannot even imagine our daily activities without electricity and all the machines it powers. And the technology we’re using is constantly improving, making new things possible. Let’s take a look at this year’s top technology trends.

By Aurel Constantin the processing of personal data in untrusted environments—which is increasingly critical due to evolving privacy and data protection laws as well as growing consumer concerns.

Privacy-enhancing computation utilises a variety of privacy protection techniques to allow value to be extracted from data while still meeting compliance requirements.

Another big trend surrounds cloud-native platforms, technologies that allow users to build new application architectures that are resilient, elastic, and agile, enabling them to respond to rapid digital change. Cloud-native platforms improve on the traditional lift-andshift approach to cloud, which fails to take advantage of the benefits of cloud and adds complexity to maintenance.

Artificial intelligence will find new sectors to develop as well. AI engineering automates updates to data, models, and applications to streamline AI delivery. Combined with strong AI governance, AI engineering will operationalise the delivery of AI to ensure its The pandemic also forced older consumers to go online as the world shut down

S

ongoing business value. Generative AI learns about artifacts from data and generates innovative new creations that are similar to the

mart homes, self-driving automobiles

recommend where data should be used and

original but don’t repeat it. Generative AI has

or augmented reality glasses are just

changed. This can reduce data management

the potential to create new forms of creative

a few of the things that will become

efforts by up to 70 percent.

content, such as video, and accelerate R&D

more present all over the world. Meanwhile,

Another trend is the cybersecurity mesh,

cycles in fields ranging from medicine to product creation.

governments will further regulate big tech

a flexible, composable architecture that

companies on matters like antitrust and

integrates widely distributed and dispa-

privacy as the industry starts building the

rate security services. Cybersecurity mesh

are self-managed physical or software sys-

metaverse.

enables best-of-breed, standalone security

tems that learn from their environments and

solutions to work together to improve overall

dynamically modify their own algorithms in

to do with the development of data fabric,

security while moving control points closer

real time to optimise their behaviour in com-

which provides flexible, resilient integration

to the assets they’re designed to protect.

plex ecosystems. Autonomic systems create

of data sources across platforms and business

It can quickly and reliably verify identity,

an agile set of technology capabilities that are

users, making data available everywhere it’s

context, and policy adherence across cloud

able to support new requirements and situ-

needed regardless where the data lives. Data

and non-cloud environments. Furthermore,

ations, optimise performance, and defend

fabric can use analytics to learn and actively

privacy-enhancing computation secures

against attacks without human intervention.

According to Gartner, one major trend has

AI is linked to autonomic systems, which

www.business-review.eu Business Review | February May 2016 2022

COVER STORY AI 31 14

SMART HOMES

globe in 2021. But we are also seeing electric

ing more experience and confidence using

People’s relationship with their homes has

models from major brands including Ford,

online services and choosing to adopt more

been changed by the pandemic. Since the

General Motors, Mercedes-Benz, and Volk-

tech solutions that provide assistance in their

home has become a workspace, people have

swagen, which will make EVs accessible to

daily lives. Alongside browsing and shopping

been trying to transform their living spaces

more people at lower prices. Market leader

online, digital seniors embrace virtual solu-

in order to accommodate the new function.

Tesla will continue expanding, while startups

tions for socialising, health screenings, finan-

The smart home concept will become very

like Lucid and Rivian will elbow their way

cial management, and learning. TikTok is one

popular in the near future, and we should see

into the fray. At the same time, R&D depart-

of the platforms these consumers are using,

a boom of smart products as a result. Tech

ments should deliver better batteries and

as a result of their digitally native grandchil-

companies like Google, Apple, Amazon, and

charging options.

dren influencing and empowering them to be on social media. In fact, over 60 percent of

Samsung are working on developing a standard connectivity technology—called Mat-

FITNESS GADGETS

consumers aged 60+ visited a social network-

ter—that will allow all smart home devices to

As the pandemic has made us more careful

ing website at least once a week, whilst 21

connect to each other, regardless of brand,

about our health, technology came to offer

percent took part in video gaming weekly.

and ensure that new smart products will be

gadgets meant to gather individual

compatible with the ones people already

biometric data. Today, many

have in their homes.

clinics are already using

As older consumers embrace technology, human interactions will remain a prevalent component of how

Regarding work-from-home practices,

this type of data to

a Lenovo study finds that 83 percent of IT

prevent, diagnose,

leaders expect at least half of work to happen

and treat health

outside a traditional office in the future. That

problems. Tech

technology and

means that we will see more products, solu-

companies like

seamless solutions

tions, and services designed to improve the

Fitbit and Oura

combined with

employee experience, with the office being

are working on

face-to-face com-

seen as a destination for collaboration while

developing new

munication define

protecting the sense of personal space people

wearable gadgets

have experienced by working from home.

that will provide ac-

New office designs and audio/video technol-

curate data about users’

ogy will pave the way for flexible meeting

health.

setups and create new ways to build social connections.

More companies will shift spending to

they engage with brands. Easy-to-use

the future of digital inclusion for seniors.

Building an agile plan directed at both digital seniors and elderly novices will

Health-tech company Oura has developed a ring that features

enhance return on investment.

embedded sensors to track body temperature

improve their IT infrastructure. They will

and other important data. The ring can also

lean on outsourced and managed services,

predict menstruation cycles. At the most

increasingly secured through Device-as-

recent CES tech trade show, a startup called

apps & games, bringing the total of app and

a-Service (DaaS) IT acquisition models to

Movano showcased a similar device, which

games ever released on iOS and Google Play

support their teams as they try to keep up

compiles data about heart rate, temperature,

to over 21 million. Google Play accounted for

with digital transformation and increased

and other vital stats that will inform the user

77 percent of all apps and games released in

demand. This will give rise to consumption-

about their potential risk of chronic diseases.

2021. Across both iOS and Google Play, games

driven pay-as-you-go options for solutions

MOBILE ECOSYSTEM In 2021, publishers released 2 million new

represented 15 percent of all new releases

that allow customers to focus on business

DIGITAL SENIORS

last year. The remaining 85 percent of new

outcomes while shifting system-level support

The pandemic also forced older consumers to

apps span across all categories on the app

to a vendor or cloud service provider.

go online as the world shut down. Now famil-

stores, from mobile-first movers like social to

iar and comfortable with technology, digital

mobile-forced industries like insurance and

ELECTRIC CARS

seniors are empowered to make purchases

healthcare.

Electric vehicles are also moving into the

and use services through this channel. Busi-

mainstream. The transition from cutting-

nesses have an opportunity to tailor their

out over time, leaving 5.4 million available

edge to standard technology can only be

digital experiences to target and meet the

apps and games (1.8 million on iOS and 3.6

delayed by the charging infrastructure, which

needs of this expanded online audience. Ac-

million on Google Play). With smartphones

might not develop at the same pace—but

cording to Euromonitor International, global

providing unparalleled reach and access

full-electric vehicles will certainly get better

population aged 60+ will grow by 65 percent

to billions of consumers worldwide, every

this year. Leading e-vehicle company Tesla

from 2021 to 2040, reaching over two billion

industry will be mobile-focused moving

shipped over one million cars across the

people. This relatively wealthy cohort is gain-

forward.

Apps are also being removed and phased

www.business-review.eu Business Review | February 2022

32 TECH

Metaspaces taking over the events industry The metaverse provides us with a chance to create a world that is inclusive, ethical, and accessible. The evolution of technology points to a positive future: 88 percent of global consumers believe that tech can make the world a better place, and 78 percent agree it can help create a more equitable society, according to a July 2021 survey by Wunderman Thompson Data.

By Romanita Oprea The term was initially coined by author Neal Stephenson in the 1992 novel Snow Crash, but its newfound popularity came after Facebook announced that it would rebrand as Meta.

To Meta founder Mark Zuckerberg and other metaverse proponents, the ultimate idea is a sort of second digital life for everyone to live online,” said Claire Hoffman for BizBash.

NEW PLATFORMS TAPPING INTO THE TREND Surreal, a platform for hybrid events that combine virtual experiences and physical spaces, launched in March 2021. To make its experiences feel even more lifelike, the brand partnered up with DNABlock to create

H

Virtual experiences and physical spaces or the reverse version a combination that will change events even more

bespoke, hyperrealistic 3D avatars and give up to 50,000 participants a personalised social and interactive experience. Built with Unreal

abits and beliefs from our physical

sky. CEO Jon Morris describes the platform

Engine, Surreal “enables realistic, real time 3D

lives are not only extending into

as “the first online event space where you

rendering” for events that can be “configured

the digital realm, but are becoming

can truly be present, whether feeling the raw

into any environment—real or imagined.”

more significant, as users explore the poten-

energy of a virtual performance or serendipi-

tial to do better in the metaverse.

tously vibing with a stranger you just met.”

Tech companies are innovating by creating

Big tech players are also harnessing

Looking for guidance, crypto investors are turning to emerging virtual real estate brokers and specialists. Also in March 2021, the

digital worlds that foster meaningful connec-

technology to enhance social experiences.

Metaverse Group announced plans to launch

tions, collaboration, and discovery.

Facebook’s Horizon, currently in beta mode,

Metaverse REIT, a first-of-its-kind real estate

aims to be a “VR social experience” where

investment trust for virtual assets. Jason Cas-

society, but doing it right from day one,” said

explorers play, build, and create together.

sidy, cofounder of Metaverse Group, spoke of

Daren Tsui, the CEO of Together Labs, for

Microsoft’s Mesh uses mixed reality to create

the firm’s desire to lower the barrier of entry

Wunderman Thompson Intelligence. Tsui is

interconnected worlds allowing people in

for larger developers who want exposure

describing IMVU, the company’s 3D avatar-

different physical locations to be together in

to the metaverse but “don’t know where to

based friendship discovery social network.

real-time via holographic experiences.

start.”

“Think about creating a new online

The platform is designed to reflect academic

“While event producers are still recover-

MetaSpace Real Estate Investment Trust

research suggesting that interacting with

ing from the whirlwind of pivoting to virtual,

(MREIT) began trading on PancakeSwap,

others in 3D environments that feel realistic

new technologies like NFTs, holograms,

a decentralised exchange with over USD 2

helps develop social presence—the feeling

cryptocurrencies, and the metaverse are

billion of daily trading volume, on December

of being in the same place as someone else—

uprooting the industry once again. It’s under-

17. MREIT founder Eric Klein said that the

thereby fostering a more authentic connec-

standable if your head is spinning a bit. The

company would focus on buying, leasing,

tion. Nowhere is a new social networking

metaverse is a collection of virtual, 3D worlds,

and minting high–traffic virtual real estate in

platform that places people in 3D environ-

where people create their own personal

the metaverse with profits flowing back to

ments ranging from forests to islands in the

avatars to explore across different platforms.

token holders via smart contracts, much like

www.business-review.eu Business Review | February May 2016 2022

COVER STORY TECH 33 14

a traditional real estate investment trust. The

walk, talk, dance, shake hands, share, like,

parallel universe. In order words, they are cre-

company will be fully audited with KYC and

comment, and engage throughout a virtual

ating a new world of experiences, where only

will set the standard for traditional real estate

event, which means engagement levels can

creativity sets the limits. No wonder special-

investors looking to diversify in the virtual

be captured in detail. The metrics and analyt-

ists believe that metaspaces could take over

real estate world.

ics available following an event can be hugely

in the very near future.

“Collect up premium metaverse real es-

beneficial for organisers and their sponsors.

In a world where the pandemic presses on

tate, build high-value virtual structures, and

Also jumping on the trend, MetaDesign.

rent them out for profit. Just like a physical

com offers virtual brand spaces for a material

the possibility of using the virtual space at its

real estate trust, MetaSpace, the first virtual

world. According to the platform, people can

fullest represents a great alternative to real-

real estate trust, aims to create a way for a

now interact with brands in a deep, immer-

life experiences and interactions with brands,

group of people to hold shares in profitable

sive, experiential way. That all applies to

in a safe and creative place. According to

real estate projects, but in the metaverse,”

fields such as retail, exhibition, institutional

Forbes, before the pandemic, only 45 percent

also explained Kristi Waterworth on Motley

events, etc. It’s designed to grow and adapt

of people had attended a virtual event; today,

Fool.

with the business in a constantly changing,

that number reaches 87 percent. This trend

dynamic business environment, by tran-

has inspired over 90 percent of event organis-

scending the material world’s physical limita-

ers to plan for even more virtual events in

Quoted by The Real Deal, Klein commented that this was the biggest opportunity

and wars seem to be knocking at our doors,

of his generation. “Especially for those

2022, according to a fall 2021 survey by

of us who work in real estate and have

Kaltura.

seen the industry shift in unprecedented

“Meet, host, chat, conference, sell,

ways. It’s web 1.0 and 2.0 combined.

stream, play, dance, launch, perform,

Social media, work, hobbies, sports, and

teach, present in almost real-life experi-

leisure, via NFTs, everything will live in

ence. Metaspace is the ultimate platform

one ecosystem. If you’re not on board,

to host, create or attend any kind of event

you’re going to be left behind. That’s just

if you have specific invitees or friendly

a fact.”

meetups around the world,” the website reads.

As more of our lives are being spent

MEMORABILITY. CREATIVITY. ENGAGEMENT

online, it’s becoming harder and harder

“The impact of the metaverse on events

to distinguish “real” life from a life lived

and meetings will be similar to the impact

tions and restrictions. Moreover, brands can

digitally. “The smartphone is no longer just

email had on snail mail. There will no longer

transform their physical exhibition booths

a device that we use,” says Daniel Miller,

be a clear divide between those who attend

into scalable, digital spaces. They can create

professor of anthropology at University Col-

an event in person and those who are there

a dynamic, experiential platform where the

lege London. “It’s become the place where

virtually. When we host a hybrid event on

company’s sales force and customers can

we live.” Moreover, in New York City, AR art is

Orbits, the MC speaks to the live audience

interact and where people can discover the

breaking through screens. High Line Art and

and the virtual audience as if it were one big

full depth and breadth of the brand and its

cultural institution The Shed collaborated to

auditorium, and no matter where you are on

products. Similarly, metaspace.fi is a platform

create The Looking Glass, an AR exhibition

the planet, you're able to interact with speak-

where one can own, manage, and explore

of virtual sculptures located along the High

ers, attend Q&As and workshops, participate

different virtual spaces. These spaces can be

Line. In July and August 2021, onlookers were

in specialised experiences or simply bump

used to store and showcase art, collectibles,

able to use the Acute Art app to view artworks

shoulders with people at the bar,” said Lach-

and other virtual assets. At the same time,

projected onto the world around them,

lan Phillips, the CEO of Orbits, for BizBash.

it’s a place to explore, allowing you to play

ranging from static, traditional sculptures to

The metaverse allows organisers to be

around in your own spaces and see what oth-

pieces that incorporated sound and move-

creative in their approach to event planning

ers have made, as well as find and enjoy new

ment. Artist Olafur Eliasson, whose work was

to build truly customer-centric, memorable

kinds of interactive 3D-experiments.

included in the installation, told the New York

virtual experiences. At the same time, it has

Made for social communication and in-

the ability to drive diversity and inclusion in

teractive experiences to create an alternative

events, a point that cannot be overlooked ei-

space for brand events and gatherings, Decol

ther. An attendee’s ability to create their own

TV’s Metaspace is a playground for com-

cal experiences—are already successfully rev-

avatar means they can be whoever they want

pany representatives to design experiences

olutionising culture and art scenes. Experts

to be, which can result in a more inclusive

without physical world limitations, expand

say that in the future, we should expect to

audience and ultimately a more diverse selec-

people’s minds with the instruments of the

see similar blurred reality activations in retail

tion of experiences and opinions. Avatars can

digital world, and unite the word inside a new

spaces, brand hubs, and business centres.

Times that he viewed the pieces as an “extension of reality.”

Liminal spaces—blended virtual and physi-

www.business-review.eu Business Review | February 2022

34 DIGITAL

Tech giants add wellness music to their repertoires As more and more people are starting to utilize music as intentional medicine (to de-stress, sleep, focus or work out), the music industry is getting better at responding to their demands.

The major music streaming providers (Spotify, Amazon, Apple, etc.) are really ramping up their music-for-wellbeing content, essentially creating a new “wellness” listening channel.

By Romanita Oprea was the only thing that actually lowered their depression levels. Spotify reported that global listening time for their mental health playlists doubled in 2020.

“We all know that music influences our mood and can boost our memory. If we want to keep our brain engaged through the aging process, listening to music represents a total brain workout. Worldwide studies show the numerous benefits of music on people’s health, all based on MRI results. They show that music stimulates important parts of the brain, especially the limbic system—known as the emotional centre of the brain. This area also controls blood pressure, heart rate, and respiratory rate. So based on these conclusions, we can say that slow paced music tells our body to calm down and relax,” said Alecsandra Ionita, wellbeing specialist at Wellbeing.ro.

Our wellness is defined by the number of moments we spend relaxing, whether through a spa visit, a morning run in the park Alecsandra Ionita, Wellbeing.ro

B

or having music playing in the background while we work or study. So, the more we listen to a certain type of music, which the

creative and meaningful ways—will heat up.

music industry has classified as wellness mu-

creating music that heals; meditation

The pandemic has accelerated music

sic, the more we benefit from all the positive

apps are becoming full-blown record

consumption, with people often turning to

things it brings to our lives. “Before covid, we

labels; and radical new technologies, includ-

music specifically for mental health relief. A

used to bring relaxation music to all our work-

ing “generative” music platforms that create

Samsung UK study found that compared to

shops. At first, we found it hard to change the

an always-unfolding healing soundscape

2019, roughly a quarter of millennials are now

mood of all participants in a corporate envi-

that’s based on your biometrics, are poised

listening to over five hours of music a day—

ronment: many were loaded with worries,

to emerge out of the startup lab and onto Big

and over half of them rated music as their

deadlines, pending projects, and calls. After

Media platforms. According to the Global

number one “feel-good” source in 2020. A

a few weeks however, we saw a significant

Wellness Summit, new music-for-wellbeing

global study from NYU, McGill University, and

increase in people’s positive mood. Playing

concepts and platforms are transforming the

the University of Barcelona found that music

relaxing music while they were painting or

USD 50 billion global music industry. Experi-

was the number one way people were tack-

working on DIY projects together with our

ments across the entertainment industry—to

ling anxiety during covid-19 (more than sex,

trainers was the best choice we made. And

deliver more wellness programming in more

alcohol, working out, etc.), and that music

there was a lot of positive feedback,” Ionita

ig artists are experimenting with

www.business-review.eu Business Review | February May 2016 2022

COVERDIGITAL STORY 35 14

added. Music in wellness is as important as

living closer to nature, hearing the chirping

cialised in music therapy, who would focus

breathing in and out, says Teodora Buzoianu,

of birds, sensing the changing wind patterns,

their practice not only on music but also on

TRE® Provider & Trainee Trainer for TRE® Ro-

following the signs we once were able to read

combining mental health tools with ambient

mania. “As important as the seasons are to the

and listen for in order to find our next meal,

music as a way of treating different addictions

rhythm of life. Music is rhythm. Our nervous

etc. Although we are now mostly separated

or fears,” said Ionita.

systems are rhythm-making-and-sustaining

from these natural flows of nature and life

At the same time, it is interesting to

dynamic processes. Every process in our bod-

and have replaced them with the fast (and

observe that only two main types of music

ies that sustains life revolves around rhythm:

dissonant) rhythms of the city, we cannot be

seem to be playing in the public spaces of our

heart beats, breath flows, sleeping and waking

completely cut off from these life-sustaining

modern lives. “There is the boom-boom of

cycles—everything is rhythm. And how we

rhythms, and one way to recreate that experi-

the shopping malls, restaurants, and some

feel about ourselves and perceive the world is

ence is through music.

radios, and there is the spa-like-music of

profoundly influenced and regulated

hotels, wellness centres, and cafés.

by these very rhythmic processes.

Thinking about the profound impact

That’s also why some songs move

music has on our inner rhythms, it

us so deeply: their ‘beat’ speaks to a

is perhaps not surprising that over

certain rhythm inside us. We listen

the last few decades we’ve preferred

to sad songs when we are sad and to

music with a higher BPM (beats-

happy songs when we are happy or

per-minute) rate, containing more

when we want to change our mood,”

digitally-generated sounds. We live

Buzoianu explained.

in an increasingly fast-paced and

Moreover, according to Teodora,

technological world, which condi-

we should consider the following

tions us to value ‘fast’ and ‘more’

questions: what is wellness to us?

and ‘better’ and ‘latest/newest’ as

How do we define it or think about

indicators of efficiency and success.

it? Most would say it is a sense of

The BPM of the music we listen to

flow, ease or wellbeing inside oneself

is a reflection of that—which in turn

and one’s life or a lack of discomfort

speaks to the high-charged and

or disease. Whichever way we define

over-excited state of our nervous

it, we can’t help noticing that some

systems,” Buzoianu noted. Is it any

of the words we use to describe

wonder, then, that when we do go

both wellness and music are in the

out in nature during weekends or

same family, which revolves around

holidays, we feel at least a little bit

rhythm, vibration, patterns, tempo,

out of sorts and out of place? It’s as

flow, frequency.

if the quiet atmosphere is almost too

“As humans, we are wired for connection, and one way we go about connecting is through the rhythmicity of another human’s

hard to bear… at least for the first few hours

THE SOUND OF WELLNESS What about the types of music we use?

or days.

“It is not an accident that there are certain

voice, tone, tempo, prosody – this is how our

Alecsandra Ionita argued that we mainly

types of sounds that are associated with the

nervous systems very quickly determine if we

listen to music to boost our mood. When we

wellness business, and they are quite easy to

are in the presence of a friendly or threaten-

travel, we choose a certain genre; when we

recognise. They usually involve soothing wa-

ing other. There is a certain range of sounds

work remotely, we tend to lower the volume

terfalls or ocean waves, crickets or birds, wind

and frequencies that our ears are attuned to

in order to stay focused on our daily to-do

blowing through leaves, chimes, Tibetan sing-

recognising as soothing and safe (think about

list. “I think that the type of music we listen

ing bowls, guitars or generally real, analogue

a mom lullabying her baby to sleep), while

to depends a lot on our mood, personality,

instruments with real people playing them,

others that fall out of that harmonic range

and especially on what we want to achieve by

as well as a specific vocal tone & tempo. All

make us pay attention to a possible threat

listening to a certain type of music. If it fulfils

of these sounds, vibrations, and rhythms

in our environment (think of the dissonant

its role at the end of the day, then we can call

can have a direct influence of the state of our

sounds used to manufacture the honks of our

it wellness music, because it automatically

nervous systems, impacting the way our bod-

cars or alarms on ambulances, police, and

makes us feel better. Science has proven that

ies regulate their processes and promoting

firefighter vehicles,),” Buzoianu noted.

music releases mood-enhancing chemicals

the functioning of our rest-digest-repair mode

into our body, which therapists may use as

of the nervous system—which cannot be acti-

is a go-to when we need to find rhythm

an alternative way of treating patients. In my

vated when we are stuck in that high-charged

again—something that was once achieved by

line of work, I’ve met therapists who spe-

and over-excited state,” Buzoianu added.

Even more so in our modern world, music

www.business-review.eu Business Review | February 2022

www.business-review.eu

36 MUSIC Business Review | May 2016

COVER STORY 14

2022 concerts in Romania Some major bands and artists will be performing in Romania in 2022, and some of them will be coming here for the first time. The biggest names include Kiss, Iron Maiden, W.A.S.P, Judas Priest, Placebo, Dream Theater, Tarja Turunen, Foreigner, Evanescence, Pet Shop Boys, and Hooverphonic.

By Oana Vasiliu Italian artist Zucchero will perform at Sala Palatului on July 7. The event was rescheduled from 2020 and it is part of the tour that promotes the singer’s latest album, “D.O.C.” Renowned British band Placebo will come back to Bucharest on July 13 at Romexpo, outdoors. Placebo is an alternative rock band founded in England in 1994 by Brian Molko (vocals, guitar, music, keyboard) and Stefan

E

Don’t forget to order your tickets

Olsdal (bass, guitar, keyboard, vocals). There have been several changes to the group’s

nglish musician Sting will perform

From The Top Of The World,” released on

composition over time, but Molko and Olsdal

a special “My Songs” concert at the

October 22, 2021.

have always been part of the band.

BT Arena in Cluj-Napoca on March 15

Evanescence, one of the most beloved

KISS will perform in Romania for the first

starting at 7 p.m., together with his son, bass-

American rock bands, will also be returning to

time during the 2022 Rock the City festival.

ist Joe Sumner.

Bucharest with a concert that will take place

The event is returning after a break of almost

on June 7 at Arenele Romane.

three years, with its 11th edition. On July 16,

The Pink Martini concert is scheduled for April 9 at Sala Palatului in Bucharest, from

Nick Mason's Saucerful Of Secrets is

2022, Rock the City will introduce audi-

8 p.m. Violinist David Garrett will play at the

scheduled for June 9 at Arenele Romane. The

ences to two rock music legends: Kiss and

same venue on May 17, then in Cluj-Napoca’s

famous former Pink Floyd drummer will play

Whitesnake, both on their audio tour.

BT Arena on May 20.

the first two Pink Floyd albums with his band,

The Il Volo band is returning to Romania

which includes well-known musicians Gary

with a new concert that will take place on

concert on May 17 at Romexpo in Bucharest.

Kemp of Spandau Ballet and Guy Pratt (pro-

July 16 at Sala Palatului in Bucharest. The

The event will be part of the band’s 40th An-

lific live bassist for Pink Floyd, David Gilmour,

event is part of the “Il Volo Sings Morricone”

niversary World Tour.

Michael Jackson, The Smiths, Coverdale-Page,

world tour.

American W.A.S.P. band will hold a special

The Hooverphonic concert has been

Iggy Pop or Tom Jones) on voice and bass.

The Judas Priest concert at Arenele Romane has been rescheduled for July 18.

rescheduled for May 24 at Arenele Romane

Gogol Bordello will be performing on June

in Bucharest. Previously purchased tickets

29 at Arenele Romane in Bucharest. The event

The Dead Daisies and Amalgama will be the

will remain valid. Hooverphonic is a Belgian

is a rescheduling of an original 2021 date, so

special guests of the heavy metal band’s

band that has released 10 albums in more

previously purchased tickets will be valid.

Bucharest concert.

than 20 years, with major hits such as “Mad

The gypsy punk band is known for songs like

About You,” “Eden” or “2 Wicky”, combining

“Start wearing purple,” “Wonderlust King,”

Bucharest with their new album titled “HU-

trip-hop with alternative rock and electronic

“Pala Tute,” ‘Immigraniada,” “Immigrant

MAN. :II: NATURE.”, which was released in

music. Their latest record, “Looking For

punk.”

April 2020.

Stars,” was released in 2018.

Pet Shop Boys are returning to Bucharest

On August 1, Nightwish will return to

The biggest solo show by Armin van

after 14 years, as part of their “Greatest Hits

Buuren will take place on September 24, in

return to Romania on May 26, at Romexpo,

Live” world tour. The concert will take place

Bucharest.

with a concert that will promote the band’s

at Arenele Romane in Bucharest on July 4. Pet

Legendary British group Iron Maiden will

Tarja Turunen is also coming returning to

new “Senjutsu” album. German band Lord Of

Shop Boys is one of the most successful duos

Romania with a concert scheduled for Octo-

The Lost will have the opening act.

in UK musical history, with over 22 singles

ber 18 at Arenele Romane in Bucharest. The

in the UK Top 10 as well as four number one

concert will take place indoors, in a heated

29 to perform live for the Romanian audience

hits: “West End Girls,” “It's a Sin,” “Always on

tent. The artist will also perform in Cluj-Nap-

and promote their new record titled “A View

My Mind,” and “Heart.”

oca on October 19, at Form Space.

Dream Theater will be at Romexpo on May

www.business-review.eu Business Review | February 2022

ARTS 37

New cultural spaces in Romania Even as creative industries have been going through a second pandemic year and dealing with all the uncertainty around public access to events and performances, we’re seeing new cultural spaces opening up across the country.

By Oana Vasiliu includes choreographers Alexandra Balasoiu, Cristina Lilienfeld, Cosmin Manolescu, and Valentina De Piante.

KULTERRA (104-106 STIRBEI VODA STREET) Kulterra is the newest private exhibition space in the capital city, developed on the site of an older cultural space, using the entire area of about 280 square metres that occupies two floors below street level.

Thanks to the technology that was used to arrange its interior, Kulterra is a versatile, modular gallery, where several events can be organised and managed simultaneously.

ELISABETA THEATRE/ALHAMBRA GARDEN (13 CONSTANTIN MILLE STREET)

I

Check out this underground art gallery in Bucharest: Kulterra

The Elisabeta Theatre started hosting cultural evenings in the Alhambra Garden, which

n Bucharest, new cultural spaces include

AREAL (2 ANASTASIE SIMU STREET)

celebrated 105 years since its inauguration

Malmaison, located in the former Secu-

AREAL opened in March 2021 as a new space

in 1916. The official opening took place on

ritate prison, AREAL, a new space dedi-

for choreographic development. The space

August 26-27, with two events, a pop-opera

cated to choreographic development, and

provides direct support to projects initiated

concert, and a Cuban party with live music

private exhibition space Kulterra Gallery. In

by its founders and aims to increase the

and dancing.

addition, the Alhambra Garden has reopened,

cohesion of the choreographic sector, as well

and several subway stations have been trans-

as to develop and attract new audiences for

historical monuments, along with the former

formed into exhibition spaces.

contemporary dance.

Capitol Cinema. The two spaces had their mo-

MALMAISON (137C CALEA PLEVNEI)

space have been coordinated by a team that

Starting in 2021, activities at AREAL

The Alhambra Garden is part of a set of

ments of glory in the interwar period, when they were among the most coveted leisure

The story of the Malmaison building begins with the Barracks of the Horse Guards Regiment, built in the 19th century at the order of Alexandru Ioan Cuza, ruler of the United Romanian Principalities.

The building was later transformed into a military prison, and then, after World War II, it became a communist transit prison and investigation centre for anti-communist bourgeois intellectuals and elites.

A group of artists and art galleries have revamped the space, thus turning the Malmaison Workshops into an art community and a common space for artists, workshops, projects, and galleries in Bucharest.

A former military prison is currently an art space in Bucharest

www.business-review.eu Business Review | February 2022

38 ARTS

community. The Cosmic House is designed as

expression and multidisciplinary use of topics

a cultural laboratory, showcasing art produc-

which are specific to intangible cultural heri-

tions with music, dance, theatre, film, and

tage and motivated by the water element.

visual arts.

UNIVERSALUL VECHI STORE (RESITA) THE CASTLE OF ARTS (DROBETA TURNU-SEVERIN)

The Universalul Vechi Store in Resita also

A surprising new space is the Water Castle

cultural spaces, through an impressive exhibi-

in Drobeta Turnu-Severin, which has been

tion by Dumitru Gorzo, who presented over

turned into the Castle of Arts, a future mu-

200 works.

seum and space for exhibitions, artists, NGOs, and cultural managers.

“On November 19, we opened an old water

recently appeared on the map of alternative

“Paintings with a peak and thick” was the title of the exhibition comprising old and new works by visual artist Dumitru Gorzo from

tower, an iconic element of the city, a col-

Resita, within a project that took place both

laborative space for future museum and space

in the Banat Montan Museum as well as at

for cultural events. It has all the necessary

Universalul Vechi Store, a communist build-

equipment, free access to resources (smart,

ing with no present utility.

immersive, interactive exhibitions, with

The artist’s paintings and drawings were

places in the city. The ensemble is preparing to enter a refurbishment process which is meant to preserve and enhance the original architecture while modernising spaces to host events.

ORASUL M (IZVOR METRO STATION) Created and designed specifically for the Bucharest subway, Orasul M is a project dedicated to the visual arts, initiated and produced by the VAR Cultural Association, in partnership with METROREX. Orasul M provides a new perspective for people’s usual commute, giving way to a cultural micro-universe that passers-by usually have no time to explore on the surface.

installations and other technologies, WiFi,

placed all over the building’s glazed exterior

By providing the spaces it owns and manages,

presentation technology, work infrastructure,

and lit up from inside, thus turning the entire

METROREX is supporting the capital’s art

etc.). It is a space where all this local creative

store into a colourful lightbox.

scene.

and cultural ecosystem can work, like in an

The 11 participating artists volunteered

office it may never have had before. Here peo-

their works for the projects, using vari-

ple can meet, present and document ideas,

TIMISOARA INTERNATIONAL AIRPORT (TIMISOARA)

ous techniques (sculpture, mural painting,

incubate projects, and develop mature and

An exhibition space also appeared within the

photography, augmented reality, etc.) and

creative business solutions. We are interested

Timisoara airport, where the international ar-

covering a wide range of social and personal

in harnessing this extraordinary resource,

rivals terminal was turned into an art gallery.

themes. More archive photos are also on

giving it a place for expression, and engaging

display at Timpuri Noi station.

with initiative groups to take the bull by the

would become a cultural hub through a part-

horns and change the face of the city,” stated

nership with the West University of Timiso-

Dragos Neamu, cited by news.ro.

ara. Specialists from the School of Arts and

THE COSMIC HOUSE (CLUJ-NAPOCA) The Cosmic House opened last summer

Gradually, the Tower of Arts (former Water

Officials announced that the city’s airport

Design and the School of Music and Theatre

in Cluj-Napoca as a motivational cultural

Tower) will be transformed into a museum

will organise cultural events for all travellers

project, with the aim of supporting, build-

and a space for interpretation and lifelong

who pass through the “Traian Vuia” Interna-

ing, and encouraging the artistic and creative

learning, with a creative interface for the

tional Airport next year.