BR/02/2019 by Business Review

REAL FUTURE: HOW WILL THE ROMANIAN PROPERTY MARKET FARE IN 2019?

February, 2019 / Volume 23, Issue 2

www.business-review.eu

INDUSTRIES TURNING ‘HOT’ FOR LOCAL STARTUP SCENE IN 2019

LOCAL M&A MARKET REMAINS STEADY AFTER STRONG SUMMER

THE FUTURE OF BITCOIN IS A BET: USD 100 OR USD 100,000

Five business angels poised to fly in 2019

www.business-review.eu Business Review | February 2019

EDITORIAL 3 REAL ESTATE

• Editorial •

6 Real future: how will the

Anda Sebesi

Romanian property market fare in 2019?

• Deputy Editor-in-Chief •

COVER STORY

Business angels are set to take flight: are you in?

10 Five business angels poised to fly in 2019

STARTUP

hile the UK continues to lead the European business angel market with its EUR 107.7 million of investment

24 Industries turning ‘hot’ for

in 2017, up 9.2 percent from 2016, Romania still lags

local startup scene in 2019

behind it and its other more developed European peers, with just

26 EU flexes funding muscle for

EUR 3.4 million of investments in 2017 made by 50 business angels

Romanian startups in deals with venture capitalists

(BAs), according to Statistical Compendium, research conducted by the European Business Angels Network. By comparison, in the same year in Bulgaria 105 BAs put up EUR 7 million, in Hungary 120 BAs invested EUR 4.4 million, while 201 Czech business angels

CRYPTOCURRENCIES

stumped up EUR 6.1 million. Although last year Romania got its first unicorn, UiPath, pundits say that it is more important for an economy to have many successful startups than unicorns, because startups that create jobs and are stable contribute a lot to the economy. And this is a huge opportunity for angel investors to see the potential of startups and

34 The future of bitcoin is a bet: USD 100 or USD 100,000

inject their capital. That is why Business Review’s first issue of

CITY

2019 features a cover story dedicated to some of the most active Romanian business angels: Marius Ghenea, Matei Dumitrescu, Radu Georgescu, Dragos Anastasiu and Mihai Rotaru. The human chemistry between the business angel and the entrepreneur who comes to him for funding, innovation, creativ-

40 The virtual love business 42 Musicians mike up: top

ity, specialized human resources, the possibility of scaling the

international bands head for Romania

business, and the need for small initial investments are some of

43 Set for the silver screen:

the most important aspects that business angels look for. Local business angels still have money to inject, so it all depends on you. Are you in?

Romanian movies ready to battle the box office

46 Cultural calendar

FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | February 2019

4 NEWS

WHO’S NEWS

In the 2017 program, the registration period began on

BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro

June 16 and the number of applicants was over 19,200, which means that this year the total will be higher, since many applicants apply on the last day of registrations. The difference this year is that entrepreneurs from Cluj, Bucharest and Ilfov will receive 15 fewer points than others. In the 2017 program, most of the participants

Photo: Dreamstime

Simona Nodea has been appointed marketing director of Medicover Romania, one of the largest private medical service providers in the country. In her new role, Nodea will coordinate the company’s marketing strategy and contribute to the Swedish network’s plans to expand on the local market. She has over 15 years of experience in marketing and management, having worked for market leading companies in sectors such as distribution, banking and healthcare.

came from these regions. Another difference from the previous time is that the cur-

Entrepreneurs can obtain non-refundable funds of up to EUR 43,000 through the state program

Almost 19,000 entrepreneurs apply for Start-up Nation so far By Aurel Dragan

page 5

an allocated budget, because the 2019 state budget has not yet been approved. Start-Up Nation 2018-2019 was opened between Christmas and New Year on commitment credits allocated to the state budget in 2018. In the governance program,

Almost 19,000 entrepreneurs

and will end on February 12, and

it is expected that the second

have applied for Start-up Na-

so far 18,767 applications have

Start-Up Nation program will

tion 2018-2019. The program

been submitted, according to

benefit from a total budget of

has been accepting business

startupcafe.ro.

RON 2 billion, of which a maxi-

plans for almost a month now,

Marian Pirvu is the new general director of Depaco, one of the largest Romanian metal tile manufacturers under the Wetterbest brand, part of the TeraPlast group, one of the largest local industrial groups. Pirvu has more than 20 years of experience in the industrial and residential construction sector, having held top managerial positions. He has managed operations in several countries in Central and Eastern Europe, including Bulgaria, Hungary, the Czech Republic, Ukraine, Serbia, Croatia, Slovenia and Slovakia.

rent program does not yet have

Entrepreneurs who want to

mum of 10,000 micro-enter-

even though the state budget

open a business can obtain non-

prises and small and medium-

for this year has not yet been

refundable funds of up to RON

sized enterprises will be funded

passed. Business plan submis-

200,000 (EUR 43,000) through

in non-agricultural sectors with

sions started on December 27

the state program.

up to RON 200,000 each.

Residents invited to rank projects in county capitals

Photo: Dreamstime

By BR Team Romanians are being invited to

Federation and with the support

vote on local projects to improve

of local public authorities, have

their cities. To respond to the

identified a series of projects that

increasing importance of cities

will have a major impact on Bu-

in driving growth in the country,

charest and the 40 other county

the World Bank and Urbanize-

capitals across Romania.

Hub Romania, in partnership

Between January 22 and

with the Romanian Metropolitan

March 22, citizens and local

Areas and Urban Agglomerations’

stakeholders are invited to rank

The campaign involves more than 370 projects, worth a total of over EUR 75 million

www.business-review.eu Business Review | February 2019

NEWS 5

Razoare area to host EUR 400 million of residential projects in next 3 to 5 years Marie Myers has been appointed chief financial officer of UiPath, the leader of the Robotic Process Automation (RPA) market. As CFO, Myers will report directly to UiPath’s CEO and co-founder Daniel Dines and will provide the financial leadership to support the company’s global mission to accelerate the adoption of automation across public and private sectors and businesses of all sizes.

By Razvan Zamfir While the volume of residential buildings construction works fell by 27.7 percent in the first 11 months of the last year, some strong developers with financial backing have announced new projects with thousands of apartments worth around EUR 400 million in the Razoare area. One United Properties last year acquired the former industrial area Ventilatorul from

Razoare area could generate around 3,000 homes

Immofinanz, and thousands of flats can be built on the land.

According to Alexandru Mi-

The neighbors in Titan Mar,

for a plot of 10,000 sqm, which

owned by the family of the for-

is suitable for the construction of

trache, head of land develop-

mer Bucharest mayor Adriean

three ten-story buildings. In the

ment at Cushman & Wakefield

Videanu, obtained permits for

fall of 2017, two Dubai investors,

Echinox, when it comes to

the 5 hectare plot, where 13

each holding 25 percent of Class

plots located 1.5-2 km from

buildings with 12 floors or 20

Real Estate Development, were

Razoare, with the potential to

floors can be built.

co-opted into the company that

become short- and medium-

owns the land.

term projects, there is about

Businesswoman Camelia

Through these projects and

200,000 sqm of land that could

real estate market with a

others already under construc-

be developed over five to seven

development adjacent to the

tion, such as Cortina Academy,

years. This could mean around

land owned by Titan Mar.

the area could attract additional

3,000 homes, 150,000 sqm of

Class Real Estate Development

investment of about EUR 400

office space, and proximity

started last year to get the PUZ

million.

shopping areas.

Sucu also wants to enter the

projects in their cities based on their importance to the local community. The project is called “I CAN: Your City’s Priorities” and those who want to have their say can go on the project’s website, choose their city and start ranking their priorities. The campaign involves more than 370 projects, worth a total of over EUR 75 million, which is already part of the cities’ local development plans. According to the World Bank, the eight largest cities in Romania generate about 53 percent of the country’s GDP.

Mark Davis has been appointed the new EBRD regional director for Romania and Bulgaria and will take up his new role in Bucharest on April 1. Davis will lead EBRD operations in the two countries and help boost their economies through investment, advice and support for reforms. He joined the bank in 2013 as head of Armenia and he is currently an adviser to EBRD vice-president Alain Pilloux.

Gabriela Mechea has been appointed executive director of ANIS, the Software and Services Industry Employers’ Association. Mechea has over 15 years of experience in top management positions in technology companies. Prior to joining ANIS, she led Vector Watch for two years as its managing director. Between 2011 and 2015, she was the country manager for security solutions provider Avira. Previously, Mechea served as general manager of Gecad Net, from 2005-2010, and CEO of Gecad Technologies, 2010-2011.

www.business-review.eu Business Review | February 2019

6 REAL ESTATE

Real future: how will the Romanian property market fare in 2019? The real estate sector, like the stock market, serves as a mirror of real-world developments. Romania has a less developed capital market than its big “neighbors” in Eastern Europe, meaning its real estate market is all the more relevant as a “thermometer of the economy”. So, what do industry insiders tip the coming year to bring for the local real estate market? By Razvan Zamfir

Portland Trust finishes Oregon Park, office project sold to South African investor Lion’s Head Investments

n the real estate market in 2019, the

requisites for an acceleration in the coming

at Dentons. Going in the same line, Bogdan

base scenario is a good one, given

period,” predicts Laurentiu Lazar, managing

Papandopol, partner, head of the Bucharest

that things are going well both in

partner of Colliers International.

Real Estate Group at Dentons says that “office and industrial - including facilities for facto-

terms of supply – there are more properties

“Office and industrial remain priorities

on the market than a few years ago (and not

for our clients, and residential should remain

ries - are likely to post the most development.

just in the office area) and demand – there is

relatively strong. While still a small share of

Also, residential was a growing segment

increased interest from investors not yet pres-

the market, we see more activity in hotel/lei-

and may remain strong, also given that the

ent in Romania. “The number of institutional

sure. The upcoming elections, the relatively

demand in Bucharest and in growing cities,

products continues to be the main difficulty,

frequent legislative changes, as well as the

such as Cluj, Iasi, Timisoara, seems to be still

which has influenced the growth rate of the

health of global markets, will be key factors,”

high”.

market over 2017-2018, but there are pre-

says Perry Zizzi, Romania managing partner

According to the Colliers International

www.business-review.eu Business Review | February May 2016 2019

COVER REALSTORY ESTATE14 7

Romania boss, liquidity could well exceed the

struction workforce. New regulations, which

EUR 1 billion threshold, reaching a post-crisis

stipulate a gross salary of RON 3,000 in the

peak, of which more than half a billion would

building sector, will help.

come from the office segment alone. Coun-

Statistically, the last two years have seen

Cailean says. Still, a rise in prices or the number of transactions of 3, 5, 7 percent in one year is no boom, just as no similar fall will be a crisis or market crash.

tries in the region have been in the limelight

an increase in the number of transactions

for some years and it could be Romania’s

in Bucharest - Ilfov, but a decrease in the

moment, given that it has enjoyed the best

number of new units delivered. At the same

OFFICE

growth in this period and the high returns

time, it remains to be seen what impact new

“For 2019, most analysts who follow macro-

compared to other countries in the region of-

lending rules will have, although they are ex-

economic developments expect the down-

fer an attractive risk profile.

pected to reduce the number of transactions.

ward trend in GDP growth to continue, as the

“However, more than in other years, we

“Construction works in 2018 dropped sig-

global situation is not as good as two years

are seeing some risks on the horizon, which could change many plans. On the one hand, the international context seems increasingly difficult from the point of view of the cost of risk, given the US interest rate increases and the Euribor surge (a rise in the ECB’s interest rate by the end of next year was already included in futures price quotations in November) potential geopolitical or organizational tensions in the EU / euro area and a possible trade war are other risks worth considering. Meanwhile, domestically, there are enough things concerning investors: the reversal of the anti-corruption fight, the conflict between the Romanian government and the European authorities, and possible tax skirmishes before the electoral cycle,” warns Lazar.

RESIDENTIAL Pundits say 2019 will see the local residential market mature, in terms of results that investors will record against expectations, because there are still developers who wrongly believe

nificantly, according to INS data, which is also

ago, and the space for new stimuli (fiscal,

that just by being present on the market they

seen in the number of transactions, although

monetary) is very limited. Of course, the real

will sell without problems.

we have many more new and signed con-

estate market has its own speed and inertia,

tracts. So, 2019 could bring a similar number

and it may take a while for more moderate

plicitly the competition has increased signifi-

of finalizations, around 9,000 - 10,000 units

dynamics to become established after two

cantly. Wages have seen significant increases,

in the Bucharest - Ilfov region,” estimates the

exceptional years,” says Lazar.

which is worth remembering, as are rising in-

Coldwell Banker CEO.

“The supply has greatly diversified and im-

terest rates and rising prices – although not at

In 2018, the number of transactions was

Demand on the office market may be influenced by the labor market situation, which

the same pace as in 2006-2008 – diminished

about 5 percent lower than 2017, and the

is becoming tense. There are two divergent

by wage increases, and new homes are now

indictor is expected to fall by several percent-

realities and it is natural they will meet at

more than three times more affordable than

age points this year too.

some point.

in 2008. End buyers account for more than 90

But it seems that investors remain posi-

“We estimate a slightly higher aggregate

percent of total transactions, and we are not

tive. “The level of investor confidence is high.

vacancy rate in Bucharest (around 14-15 per-

in the same danger as in 2008,” says Georgia

We have land transactions in progress, and

cent versus 9 percent in the first half of 2019),

Cailean, CEO of Coldwell Banker Romania.

large projects are planned – not just blocks,

and the interest in some subtopics remains

but projects with broad infrastructure. There

strong. Rents are expected to remain stable,

players with a thorough plan will post good

are areas with poor supply and so we believe

but if there are significant deliveries in 2020,

results.

we will be seeing new releases. The continua-

we may see declines, at least in less desir-

tion of multi-phase projects will also depend

able areas for tenants. Bucharest is becoming

on the sales achieved in the current phases,”

a tenant’s market, but in other parts of the

According to Cailean, 2019 bodes well, and

The number of projects coming to market will depend, in the first place, on the con-

www.business-review.eu Business Review | February 2019

8 REAL ESTATE

to be delivered in 2019.The newly announced

involves not only shopping center develop-

spaces are already pre-leased in a fairly large

ment, but also big hypermarket chains and

proportion. From the available information,

discounters. “We will continue to see ten-

we expect a 2019 lease year that will be at

ants taking interest in commercial centers

least at the same level as 2017-2018 (around

(including new names on the local market)

340,000 mp / year), demand coming from

as Romania has delivered the best growth in

both existing companies and new names who

consumption in the region in recent years

want to open offices in Romania,” predicts

and over the last decade. For retail, it will be

Maria Florea, head of office agency at JLL.

a new year of nationwide expansion, with

For the four large regional office centers

at 140,000 sqm), located predominantly in

Colliers International analysts estimate deliv-

medium and large cities, including Bucha-

eries of approximately 160,000 sqm. There is

rest. Besides developers of shopping centers,

greater potential for these four major regional

we’re also talking about the big chains of

markets than Bucharest, which is already

hypermarkets or discounters focusing on

highlighted by the pace of development.

securing locations in these cities as well. We

More precisely, deliveries of 160,000 sqm

Perry Zizzi, Dentons

double the stock from 2018 (when it stood

– Cluj-Napoca, Timisoara, Iasi, and Brasov –

will continue to see interest from commercial

would increase the stock of modern of-

center tenants – including new names on the

fice space in these four cities (Cluj-Napoca,

local market, more than Polish and Turk-

Timişoara, Iaşi, Braşov) by more than 20

ish brands – which have been very active in recent years),” comments Lazar. After delivering modern storage space of 500,000 sqm in 2017 and over 700,000 sqm in 2018, a 40 percent increase in stock in just two years, the market is expected to take a breather in 2019, especially as the slight increase in the vacancy rate shows that supply has exceeded demand. 2019 is likely to bring deliveries of less than 400,000 sqm, concentrated in areas outside Bucharest. Against weaker demand than in other years, the vacancy rate could continue to grow slightly in 2019.

country there is more growth for both devel-

percent, twice as high as Bucharest’s percent-

opers and tenants,” continues Lazar.

age increase (a stock increase of more than 10

from new names for the Romanian market,

percent in 2019).

attracted by the interesting growth rates of

Based on developers’ current plans for

“In terms of retailers, there is still interest

retail sales and consumption. Judging by the

2019, more than 300,000 sqm of office space is due to be delivered on the Bucharest mar-

RETAIL

talk, there are retailers in the home & deco

ket. Some buildings scheduled for 2018 may

On the retail market, a new year of nation-

area, fashion discounter and beauty firms

be postponed for 2019 while some planned

wide expansion is underway, covering small

whose expansion strategy could bring them

for 2019 will be delivered in 2020.

and medium-sized towns as well. This

to Romania, but there is still nothing concrete

Demand will probably slow down against the post-crisis record reached in 2016 and 2017, which is already evident in the first three quarters of 2018 (with total demand down by 10 percent, and new demand by 18 percent). Therefore, total demand below the 300,000 sqm threshold is forecasted in Bucharest for 2019, but the data is being updated. However, JLL real estate consultants take a slightly different position. “In Bucharest, 260,000 sqm of office projects are scheduled

RETAIL PROJECTS TO BE DELIVERED IN 2019 Project Developer Area City Festival Shopping Center (new)

NEPI Rockastle

42,000

Sibiu

Sibiu Shopping City (extension)

NEPI Rockastle

11,000

Sibiu

Baneasa Shopping City (extension)

Baneasa Developments

25,000

Bucharest

Aushopping Satu Mare (extension)

Ceetrus

10,000

Satu Mare

Balotesti (new project)

Prime Kapital

28,000

Balotesti

Source: JLL

www.business-review.eu Business Review | February May 2016 2019

COVER REALSTORY ESTATE14 9

On the retail market, a new year of nationwide expansion is underway

to date,” says Doinita Ilie, leasing manager at JLL.

INDUSTRIAL AND LOGISTICS In the industrial field, the word of the day will be “normalization”. The industrial sector will “cool down” slightly after two years of record growth, when the stock of modern storage space, for example, grew by more than 40 percent in just two years (2017 and 2018). “The market still has development potential and we remain optimistic that the current stock will almost double over the next decade, especially if we see important developments in terms of infrastructure. However, in 2019, demand from developers will start to fall versus previous years, coupled with a slowdown in the economy, and this is already being seen in a higher vacancy rate in both Bucharest and other cities in Romania. We are heading for a balanced market, after the developers have been in the past few years,” said Lazar. JLL estimates that around 500,000 sqm of industrial and logistics space will be delivered

in 2019, so if all the projects announced are

In terms of demand, in 2019 about

completed, total stock at national level will

400,000 sqm of leased space is expected, the

exceed 4 million sqm.

market notching up healthy growth moment.

10 COVER STORY

www.business-review.eu Business Review | February 2019

FIVE BUSINESS ANGELS POISED TO FLY IN 2019 Photo: Dreamstime

By Anda Sebesi

www.business-review.eu Business Review | February 2019

COVER STORY 11

With many startups seeking finance, innovative entrepreneurs seem fortunate: if they convince individual investors to inject money into their idea, they win an angel – a business angel. With just 50 business angels active in 2017, Romania still lags behind its European peers, but there are signals on the market that local business investors are willing to put their money into valuable and innovative ideas this year too. Business Review presents five of the most active local business angels to go into 2019.

ccording to the European Business Angels Network (EBAN) Statistical Compendium, the size of the visible and invisible business angel market in Europe increased to EUR 7.3

billion in 2017, up by 9 percent from 2016, keeping it the main equity market for early stage SMEs and European startups. By comparison, angel investment in the US has reached an estimated USD 23.9 billion dollars. The business angel community in Europe grew to 337,500 investors, who closed 39,990 deals in 2017. EBAN is the pan-European representative for the early stage investor, gathering over 150 member organizations from more than 50 countries. Established in 1999 by a group of pioneer angel networks in Europe with the collaboration of the European Commission and EURADA, EBAN represents a sector estimated to invest EUR 7.5 billion a year, and playing a vital role in Europe’s future, notably in the funding of SMEs. EBAN fuels Europe’s growth through the creation of wealth and jobs. Within the visible market, the United Kingdom continues to be the leading country with EUR 107.7 million invested in 2017 and EUR 98 million in 2016. Germany comes second with EUR 77 million of angel investment in 2017, followed by France and Turkey with EUR 63 million and EUR 52.3 million respectively. The same source says that despite the strong performance of mature markets, it is important to highlight the continuing success of smaller players such as Estonia and Poland, noting the growing prominence of younger angel communities, which tend to have higher investment-to-GDP ratios than older established angel communities. While the UK continues to lead the European angel market with its EUR 107.7 million of investment in 2017, up 9.2 percent from 2016, Romania still lags behind it and its other more developed European peers, with just EUR 3.4 million of investments in 2017 made by 50 business angels (BAs). By comparison, in the same year in Bulgaria 105 BAs put up EUR 7 million, in Hungary 120 BAs invested EUR 4.4 million, while 201 Czech business angels stumped up EUR 6.1 million. Rene Schöb, KPMG Romania’s head of technology steering committee and the creator of the KPMG Startup Grow Pad, told Business

www.business-review.eu Business Review | February 2019

12 COVER STORY

Review last year that it is more important for an economy to have

business angels (about 30 percent). In Western Europe, women angel

many successful startups than unicorns, because startups that cre-

investors still represent a fraction of the angel community, about 11

ate jobs and are stable bring a lot to the economy. And this is a huge

percent.

opportunity for angel investors to see the potential of startups and inject their capital. In other words, there is still plenty of room to encourage the busi-

FinTech and ICT take the vast majority of investment from business angels (25.2 percent and 21.3 percent respectively). However, 26 percent of respondents to surveys and interviews seeking to find

ness angel community in Romania. To this end, in January, a group

out what they look for, indicated that they have no specific sectoral

of Romanian entrepreneurs from Timisoara launched a platform

focus and mainly invest in the team, the idea/team product or the

called Growceanu, a concept which aims to develop the entre-

market. Interestingly, sectors like healthcare and media keep gaining

preneurial and startup environment, making the match between

popularity in the angel community, which has resulted in the forma-

investors and individuals with business ideas. Growceanu, which

tion of sophisticated communities and networks of investors.

is connected to the European network ESIL (Early Stage Investing

As for the timeframe of their investments, business angel inves-

Launchpad) is comprised of business angel investors active in the high-tech sector. They bring their financial, professional and business contribution and offer access to their personal business network to startups that have a high potential to grow and become profitable in the future. “Our proposal is to create a community of those who are interested in investment opportunities in businesses with high potential for development. Through Growceanu, we build a process and an ecosystem which will measure and diminish the risks associated with these investments. With a common effort, we will be able to ease the access of a larger number of local investors to startups,” says Ciprian Man, co-founder of Growceanu and entrepreneur. Through-

tors mainly have long-term investment horizons, hence the name

out their initiative, Valentin Muresan, Adrian Erimescu, Dan Bugariu,

“patient capital”, with holding periods of the investment of five or

Radu Ticiu and Ciprian Man, the founders of the initiative, intend to

more years. This trend highlights the implicit idea to build longer-

create solutions for the development of entrepreneurship in western

term partnerships within the investment case.

Romania, determine the creation and implementation of public poli-

Asked what were the main risks that prevented angels from in-

cies that are favorable for the entrepreneurial environment and ease

vesting in both tech and non-tech startups, the EBAN Compendium

the access of regional startups to business angel investors.

shows that respondents focused on market demand and competi-

The Statistical Compendium of EBAN also shows that European investment per deal still remains considerably lower than in the

tion, team structure and ability to execute, and, finally, the valuation of the company.

US (EUR 180,000 in the EU in 2017 versus USD 380,000 in the US).

Notably, whereas entrepreneurs tend to focus on the product/

Individual angel investment per funding round is at an average of

technology, investors are more interested in knowing if there is a

EUR 25,400, with a very wide range of typically EUR 10,000 to EUR

market for the product/service and if the team is capable of execut-

500,000, depending on the country.

ing their business idea. Therefore, if entrepreneurs focus more on

As for their average age, the CEE region has the youngest business

the market in their business plans and presentations, they might

angel investors – between 40 and 45 years old – compared to France’s

increase their chances of getting funded. It seems that valuation is

average of more than 60.

considered “excessive” more often in non-tech deals than tech deals.

Similar trends can be observed gender-wise in Central and Eastern Europe, which boasts the highest ratio of women investing as

This phenomenon could be related to the scalability of tech projects, which justifies their higher valuations.

www.business-review.eu Business Review | February 2019

14 COVER STORY

7 things all entrepreneurs should know about angel investors Angel investors invest in early stage or startup companies in exchange for an equity ownership interest. Angel investment in startups has been accelerating. High-profile success stories like Uber, WhatsApp, and Facebook have spurred angel investors to make multiple bets with the hopes of getting outsized returns. Here are seven things to know about your potential business angel, according to Forbes. By Anda Sebesi HOW MUCH DO ANGEL INVESTORS INVEST IN A COMPANY? •

company, but can go higher.

WHAT ARE THE SIX MOST IMPORTANT THINGS FOR ANGEL INVESTORS? •

•

Do you have detailed financial projections for the next two years?

•

What are the key assumptions underlying your projections?

•

What key cost components are there for the product or service?

•

What are the unit economics?

•

What are the likely gross margins?

The quality, passion, commitment, and integrity of the founders.

•

The typical angel investment is USD 25,000 to USD 100,000 in a

The market opportunity being addressed and the potential for

WHAT QUESTIONS SHOULD THE ENTREPRENEUR ANTICIPATE ABOUT MARKETING AND CUSTOMER ACQUISITION?

the company to become very big.

•

A clearly thought out business plan, and any early evidence of

How does the company market or plan to market its products or services?

obtaining traction toward the plan.

•

What is the company’s PR strategy?

•

Interesting technology or intellectual property.

•

What is the company’s social media strategy?

•

An appropriate valuation with reasonable terms.

•

What is the cost of a customer acquisition?

•

The viability of raising additional rounds of financing if progress

•

What is the projected lifetime value of a customer?

is made.

•

What advertising will you be doing?

•

What is the typical sales cycle between initial customer contact and closing of a sale?

WHAT DO ANGEL INVESTORS LIKE TO INITIALLY SEE FROM AN ENTREPRENEUR? •

A clearly articulated elevator pitch for the business.

•

An executive summary or pitch deck.

WHAT ARE TYPICAL REASONS ANGEL INVESTORS WILL REJECT AN INVESTMENT?

•

A prototype or working model of the proposed product or ser-

•

vice (or at least renditions). •

Early adopters or customers.

The market opportunity or potential size of the business is perceived as too small.

•

The founders don’t come across as knowledgeable or passionate.

HOW LONG WILL IT TAKE TO RAISE ANGEL FINANCING? •

•

expect, and it will be more difficult than you had hoped. Not

• •

underlying assumptions.

very time-consuming process. •

•

How long will that capital last?

•

What will be your monthly burn rate?

The company was based too far away from the angel investor (most angel investors like to invest locally, and in tech-oriented

WHAT FINANCIAL QUESTIONS SHOULD THE ENTREPRENEUR ANTICIPATE FROM ANGEL INVESTORS? How much capital are you raising?

The financial projections were not believable and the founders couldn’t convince the investor of the reasonableness of the

gence, negotiations of terms, and more. Raising capital can be a

•

The pitch was made by the entrepreneur through a blind email and not a referral from a trusted colleague of the angel investor.

only do you have to find the right investors who are interested in your sector, but you have to go through meetings, due dili-

The sector that the startup operates in is not of interest to the investor.

It will always take longer to raise angel financing than you

cities like San Francisco or New York). •

The investor wasn’t convinced of the need for your product or service.

Source: Forbes

www.business-review.eu Business Review | February 2019

COVER STORY 15

Dragos Anastasiu, the inspiring entrepreneur By Ioana Erdei

ince starting his first busi-

are currently employed by the

ness in 1995, after having

group, whose brands include

graduated from the Uni-

Eurolines, TUI TravelCenter

versity of Medicine in Germany,

and Nova Travel Danubius, just

Dragos Anastasiu has built one

to name a few. In an interview with Busi-

of the largest international transport companies in Romania from

ness Review, he reveals he has

scratch. But aside from manag-

invested tens of thousands of

ing the group, Anastasiu is also

euro in startups. A relevant

focused on helping emerging

example is Euromoving, a

entrepreneurs.

removals company in which he invested EUR 25,000 in 2010,

He is the executive director of the Romanian-German Cham-

and acquired 60 percent of the

ber of Commerce and Industry

business. This was actually the

and has been part of campaigns

first company he had invested

to support entrepreneurship

in as a business angel. In the future, he sees po-

among young people as well as to convince Romanians living

tential in industries such as IT

abroad to return home and start

and services. He considers the

businesses. Along with Marius

economic environment in Ro-

Ghenea and Cristina Batlan

mania more open and prepared

(owner of Mussette), he was one

every day for investments by

of the first business angels in

business angels. In 2011, Dragos Anastasiu

Romania and hosted the TVR2

makes a bold decision and

show Arena Leilor (Lions’ Arena)

changes the company’s strat-

which invited up and coming entrepreneurs to pitch their ideas in front of an audience of investors. He has developed ten lines of business, in tourism, transport, car rental, hotels, taxi, flight ticketing and coach transport. The head of

egy by buying Danubius Travel. He also signs a partnership with TUI Travel, the world leader in tourism. “What I managed to do here in 22 years I couldn’t have done

Eurolines has an “obsession” with keeping his employees happy and

in Germany in 222 years.” In October last year, the entrepreneur

is looking to constantly keep his management teams engaged and

launched TravelBrands, a six-agency chain that aims to attract low-

independent. Anastasiu’s vision

income customers.

has paid off as his companies lead the local tourism market. His group is currently the only

ABOUT DRAGOS ANASTASIU •

Executive director of the

one in Romania that provides the

Romanian-German Chamber of

full array of tourism services and

Commerce and Industry

Anastasiu’s priority is to further

•

develop the services culture in Ro-

Business Leaders Association

mania. Eurolines Group comprises

•

Owner of Eurolines group

22 companies whose turnover

•

Ex-president of the National

climbed 25 percent to EUR 150

Agency of Tourism Agencies in

million in 2017. Some 650 people

Romania.

Member of the Romanian

www.business-review.eu Business Review | February 2019

16 COVER STORY

Matei Dumitrescu, the millennial investing in the new generation By Ioana Erdei

atei Dumitrescu has

may not invest anything or

been an interna-

be in over my head and try to

tional angel investor,

bring other investors with me,” he said.

startup mentor, and investment

He admits he is easily

advisor since 2013. He started his mission as a business angel

convinced to invest in startups

by investing in startups from dif-

that come up with a solution

ferent industries such as music,

to a problem that people face

trading and software. “I invest

every day. “The bigger the

in projects that have a positive

problem, the more efficient the

impact in society; my motto is

solution, the bigger success a

purpose before profits,” Dumi-

business has,” he said. When

trescu told Business Review in

asked to describe the business

an interview.

environment in Romania, he replied that Romania offers

He has also mentored hundreds of up and coming

great opportunities. “We don’t

entrepreneurs from Malaysia

have a history of investments,

to Brazil. His first investment as a business angel was in a company

but we are working on it with the authorities.”

called Cosul de Legume, the first startup to promote Romanian organic products on a large scale. In spring 2018, alongside other business angels and venture capital funds, he invested in eight Silicon Valley startups. “In six years, I have invested more than EUR 300,000 in over 20 companies, from a simple idea to a ten-year-old firm. There are also several startups that I have joined as a minority shareholder and managed to attract investors,” he said. His notable investments include Connect Hub, one of the first coworking spaces in Romania (a total

ABOUT MATEI DUMITRESCU

investment of EUR 50,000 with

•

another business angel; he made

startup mentor, and investment

his exit in 2015), and Wirefame,

advisor

an AI based SGI platform (total

•

investment of EUR 150,000 with

Year in Romania at the Central

GapMinde).

European Startup Awards, and

“I have invested from a couple

International angel investor,

In 2018 voted Investor of the

competed in the regional Grand

of thousand euros to hundreds of

Finale in Warsaw

thousands of euros in one busi-

•

ness. It brings me great joy when I

ups, from Malaysia to Brazil

Mentor for hundreds of start-

can convince other investors to join me in believing in the potential

•

Investor in dozens of companies from Silicon Valley to Romania

of a startup. In spring 2018, along with another seven investors, I

•

Recently he has invested in WireFame, an AI based CGI plat-

invested in a group of Silicon Valley startups,” Dumitrescu told BR. His plans for 2019 depend on his “discoveries”. “A business angel doesn’t have a strict investment plan like a venture capital fund. I

form, and in BioDumbrava (organic agriculture) •

Vice president of TechAngels, the first and strongest Business Angel Investors Network in Romania.

www.business-review.eu Business Review | February 2019

COVER STORY 17

Radu Georgescu: Failure is the greatest thing there is, you do not learn anything from success

By Aurel Dragan

adu Georgescu is one of

and products in their market,”

the most famous entre-

says Georgescu. As an investor

preneurs in Romania,

in new ideas and someone that

one of the oldest, as he opened

sees over 2,000 ideas in a year,

his first business in 1992, and

he chooses depending on a set

one of the best-known, since he

of principles. “Vision, abil-

sold RAV antivirus to Microsoft

ity to execute and chemistry.

in 2003.

This means we share the same values. Vision is important.

“In 1992, I set up the first GECAD company, and in 1994 we

They need to answer the ques-

began developing RAV antivirus,

tion ‘why.’ But then, the most

as well as three other software

important thing is the ability

products that weren’t too suc-

to execute. The big companies

cessful. Well, actually they were

in the world are not those that

failures. This is another entre-

had the idea, or the vision.

preneurship lesson learned:

They are those who executed

not all projects have the same

brilliantly. And, yes, there

chances to succeed. With RAV, however, we struck gold. In 2003, we had more than 150 resellers in 60 countries and, that same year, this

needs to be chemistry as well,” he says of his criteria for investing. Among the investments he has made, Vector Watch, which makes

technology attracted Microsoft’s attention, the company with which

a smartwatch with a battery that last for 30 days, is one of the best-

I eventually negotiated the sale of RAV,” says Georgescu.

known globally. TypingDNA is another investment of his, a security

It is a lesson that he still gives to young entrepreneurs. “Failure is

company that provides identification and authentication services

the greatest thing there is. You do not learn anything from success.

using artificial intelligence algorithms that recognize the unique way

It’s very easy to say ‘success doesn’t matter and failure is good’ but

a person types. This “biometric typing” is the newest way of second-

I think everyone owes himself or herself an experience of failure.

ary authentication in online transactions, meant to improve and

Hopefully, your first failure is a bit of a success so it can fund your

replace todays methods (SMS, token etc.). Smart Bill was another

next success,” adds the entrepreneur.

investment he made, along with the fund Catalyst Romania. The company, which has developed a

Over the years, Radu Georgescu has had more successful sales

billing solution and is a local SaaS

and exits. He sold ePayment,

(software as a service) provider,

known today as PayU Romania,

got EUR 1 million to continue

to Naspers, and Avangate to the

developing. Another important in-

American investment fund Fran-

vestment is Sympopay, a solution

cisco Partners. He opened Gecad

designed for retailers who want to

Ventures in 2016 in order to have a

integrate all partner banks into one

better identity as a venture capital

single payment terminal. “I think an entrepreneur is a

fund. Georgescu turned business angel before as he made money

problem solver. He or she has or

from its business. “Almost 25 years

gets a vision and knows how to

after I set up Gecad, we succeeded in bringing it to another stage in 2016 when it became Gecad Ventures, thus officially a venture

solve the problem,” says Georgescu. The advice he would give to young entrepreneurs is: “Go for

capital firm that is investing in a broad range of companies with high

global companies. I wouldn’t do a company for my neighborhood,

growth potential, with the ability to innovate and deliver new ideas

nor my city, but for the world.”

www.business-review.eu Business Review | February 2019

18 COVER STORY

Marius Ghenea, the entrepreneur that grew business wings By Ioana Erdei

arius Ghenea is an

investment fund. In 2019 we

entrepreneur who

are ready to invest around EUR

has accepted all the

40 million in Romanian tech

business challenges he has been

companies. The first EUR 10

given. He has started afresh and

million is already invested,” he

reinvented himself several times

outlined.

and, during his career, managed

Looking to the future, he

to develop a total of 25 busi-

thinks that creative business

nesses and invest around EUR 20

has the most potential. “I think

million. He started his business

that Romania has clear advan-

angel career in 2007, on the

tages in this area: creativity,

Lions’ Arena TV show. One of his

specialized human resources,

first investments was in Add Mir-

the possibility of scaling the

ror, an indoor media company

business, and last but not

that he sold to the then market

least, the need for small initial

leader.

investments,” he noted.

“In the beginning I tried to in-

According to him, there are

vest in all kinds of businesses in

no official data on the total

different economic fields. I think

value of investments made by

this was my biggest advantage

business angels in Romania,

as a business angel. As I gained

especially as some of them can

more experience, I understood

be easily mistaken for invest-

the importance of specializing in specific areas. After I invested in

ments made into new companies by the three Fs – family, friends

services, distribution, retail, media companies, and I started focus-

and fools. “In my experience as a business angel and venture capital

ing on the IT industry,” Ghenea told BR.

investor, I have always had beside me around 20 business angels,

As a business angel, he has invested in ten companies, according to an interview he gave to Business Review. “As a growth-capital investor I have also invested in another ten companies. Counting

which clearly shows that Romania has big potential but also shows that most business angels prefer to share the investment risk with others,” Ghenea said. He underlined that legislation

the companies, as a serial entre-

governing this type of investments

preneur, I have invested in a total

is blocked by the lack of imple-

of 25,” he told BR.

mentation methodology. In spite

Ten years ago he invested EUR

all this, the Romanian business

253,000 in PC Garage, an online IT

environment is friendly to this

store. In 2016 he sold the company

type of investment because there

to eMAG, the biggest marketplace

are very few alternatives for high

in Romania.

net worth individuals. “The stock

Also, 12 years ago he invested in Viking Profil, a metallic tile manufacturer. In 2008 he sold the

exchange market lacks liquidity, investments in different instruments are limited, and yields very

company to the biggest player in the industry in South-East Europe,

low. This is why placing money as a business angel is attractive in

the Polish company Pruszynski.

Romania, because it offers investor the upside of getting shares and

“In the past, I have invested in Romanian companies through 3TS

extra decision making benefits in a company,” Ghenea commented.

www.business-review.eu Business Review | February 2019

COVER STORY 19

Mihai Rotaru: Overnight success takes seven years! By Aurel Dragan

n 2011, Mihai Rotaru, along

loss or theft. The apps run in

with Alexandru Dumitru,

the cloud, but also by inserting

created the mobile app

a USB stick. The platform offers

Clever Taxi. It was a solution

advantages to both companies

for the ever-growing urban

and employees, facilitating

transportation scene and helped

flexibility and autonomy in the

customers find the closest taxi

work schedule. “The startup environment

to their location. In six years, the app has taken over 40 million

in Romania is fairly restricted

orders for taxis in 20 towns and

and people go very fast from

cities.

one to the other. I think the

The pair sold Clever Taxi to

best way is to have open talks

giant German corporation Daim-

with everyone. However, I al-

ler Mercedes in 2017, for over

ways enjoy talking with people

EUR 10 million. The app created,

in this field to change ideas,

called Mytaxi, is now able to

not necessarily to invest or find

develop at a European level.

an investor. We are not very

“We have many specialists who

many and in the little one here it would be good to talk to each

are helping us in the development process. The urban transport market in Romania is quite large,

other because people can exchange interesting ideas,” says Rotaru. Still, he advises young entrepreneurs not to expect overnight

reaching about EUR 1 billion. Interestingly, it is growing steadily, young people are buying fewer cars and choosing to proceed with

success and not to give up after a year if the business doesn’t go as it

leased transport solutions (in one form or another). With this strate-

should, according to expectations. “Overnight success takes seven

gic acquisition, Mytaxi accelerates the international expansion of the

years to become real!” says Rotaru, quoting a business angel motto.

‘taxi order’ application in Europe,” said Rotaru, after negotiations that lasted nine months. He stepped down as CEO of the company, but didn’t retire.

ABOUT MIHAI ROTARU •

Business angel, investor

Instead, he decided to become a

•

business angel and invest in local

the e-hailing app that become

startups. Apps like Martketplace,

that most used in Romania; in

which gathers offers from different

Bucharest, the app is used by 1 in 4

companies, and artificial intel-

customers

ligence are the domains where he

•

first started to look at for ideas.

and CEO at Code5 Media

The startup Appsulate, winner

•

In 2011 founded Clever Taxi,

From February 2008 owner From May 2010, owner and

of the Start-up Excellence Award

CEO at Squeely

at Innovation Labs 2018, was

•

chosen for an investment. “Ap-

partners, Clever Taxi to Daimler

psulate caught my attention with a very well-formed team and the

Mercedes, but stayed with the company to help it develop

innovation it proposes,” said Rotaru, who added that he sees high potential in becoming a cyber-security leader. Appsulate allows ac-

In 2017 sold, together with

further •

In August 2018 announced an investment in Appsulate, the

cess to applications that contain sensitive data through secure high-

cyber-security company that won the Start-up Excellence

visibility and protection against malware attacks and prevents data

Award at Innovation Labs 2018.

www.business-review.eu Business Review | February 2019

20 BUSINESS

Taxing times: local entrepreneurs brace for big challenges Romanian businesspeople face major challenges in 2019 as the economic environment is changed by new or higher taxes, decelerating consumer spending, higher borrowing costs, a weaker currency and higher wages. All these challenges could translate into steeper costs and unpredictable revenues.

Photo: Dreamstime

By Sorin Melenciuc

A weaker RON has the potential to hit high numbers of businesses in Romania

HIGHER TAXES, NEW TAXES

draft budget for 2019 and many experts say it

owners are thinking seriously about moving

Running out of revenue sources, the govern-

has no money to finance its soaring spending

their businesses abroad to avoid spiraling

ment recently introduced a 0.3 percent tax

on public servantsâ&#x20AC;&#x2122; wages and pensions.

costs.

on bank assets, effective January 1, 2019, and

Experts also warn that Romania is facing

â&#x20AC;&#x153;Our colleagues asked us to look at a

capped retail and corporate gas prices at RON

a testing end of the business and election

potential meeting with SME organizations

68/Mwh.

cycles in 2019, and this means major chal-

in Bulgaria and to initiate a dialogue on the

lenges for local entrepreneurs.

possibility of moving some activities from

It also imposed special taxes of 2 percent of turnover on energy firms and 3 percent on telecom companies. The government has not yet released a

The CNIPMMR, an organization of Roma-

Romania, because many entrepreneurs now

nian SMEs, is expecting a major impact from

feel that things are not moving in a good

the new taxes and warns that many company

direction,â&#x20AC;? said CNIPMMR president Florin

www.business-review.eu Business Review | February 2019

Jianu.

BUSINESS 21

disintermediation and an increase in risk

The lack of credibility is really what worries

Many business owners and analysts ex-

margins, which cannot remain without effect

us more than anything else,” said central

pect new taxes or “ad-hoc tax hikes” this year

on the prospects for economic growth, espe-

bank spokesman Dan Suciu.

due to the major fiscal difficulties facing the

cially against the backdrop of the slowdown

government.

of the global and European economies,”

forecasts and now expect the RON to fall to

Horia Braun-Erdei, chief economist at BCR,

unprecedented exchange rates.

There are already suggestions in the market that the government might raise income tax on higher revenues or introduce other taxes to finance its soaring social spending. “Exogenous factors, such as ad-hoc tax

said in a recent report. The economists expect a rapid decelera-

Some analysts have already changed their

Liam Carson, an analyst from the macroeconomic research firm Capital Economics,

tion of the credit growth rate – of up to 2-3

expects the exchange rate to reach over RON

percent, in a moderate scenario – this year,

5/EUR.

due to the new fiscal measures, with a major impact on investment in Romania.

WEAKER RON One of the main risks to have already materialized in 2019 is the depreciation of the Romanian currency. Following the announcement of the new fiscal measures, most economists expected the RON to lose around 2-3 percent of its value over the entire 2019 but the reality seems much worse. In the first three weeks of the year, the RON had already lost 2 percent of its value against the European single currency and the “The size of Romania’s current account

hikes and gradual RON depreciation (…)

central bank seems to accept this trend as

would add to inflation, while imported infla-

an inevitable correction of Romania’s major

deficit suggests that the RON is overvalued.

tion and a higher EUR-USD rate may lower it,”

economic imbalances.

The central bank intervened throughout

Dan Bucsa, chief CEE economist at UniCredit in London, said in a recent report.

The Romanian central bank has warned that the RON is being hit mainly by the country’s lack of credibility.

RISING BORROWING COSTS

“There are many elements here – we have

most of 2018 to prevent depreciation, but that’s ultimately unsustainable,” Carson said. Many economists warn that the RON is also being weakened by the new tax on bank

Inflation, as always, puts pressure on borrow-

a background situation, one of conjuncture

assets, as it is correlated with the money

ing costs, as the interest rate is mainly insur-

and a momentary one. All three contributed

market rates – the higher the rates, the higher the tax.

ance against currency depreciation through

Central banks use interest rates as a prime

price increases. Central bank data seen by Business Re-

tool to defend a currency – the higher the in-

view show that interest rates were already on

terest rate, the lower the risk of depreciation,

a rising trend last year.

as the currency becomes more attractive as an investment if it offers higher returns.

In November 2018, the average interest

But the new tax on assets reduces the

rate for new RON loans granted by Romanian banks to non-financial companies was 6.12

Romanian central bank’s incentive to use

percent per annum, compared to 6.06 per-

interest rates to defend the RON, as higher

cent in October, 5.88 percent in September

interest rates risk reducing the solvency of

and 4.69 percent in November 2017.

the local banking system. A weaker RON has the potential to hit high

Economists now expect this trend to ac-

numbers of businesses in Romania as many

celerate in 2019 due mainly to rising inflation, RON depreciation, the new tax on banks’

to the result, namely: a lack of credibility for

costs in the country are calculated in EUR –

assets – which will be passed on one way or

investors holding RON and who are starting

from mobile bills to real estate.

another to customers – and to higher risks

to let go of their holdings. That is where the

associated with businesses and the value of

pressure is coming from. Let’s remember

in EUR and so depreciation of the RON could

guarantees.

that the RON is a convertible currency. (...)

see local prices spike.

“Ceteris paribus, the tax measures (of the government) will lead to a process of bank

Thus, the credibility of the local situation is extremely important in setting expectations.

Many suppliers also calculate their prices

Businesses that import goods or services from abroad will also be hit by a severe de-

www.business-review.eu Business Review | February 2019

22 BUSINESS

preciation – while, on the other hand, exporters will largely benefit from the depreciation of the RON.

investment, and freeze employment. In telecom, some analysts expect a delay

For many analysts and entrepreneurs, it is difficult to predict the real impact of all these

in the introduction of 5G in Romania due to

new measures on the business environment

higher taxes.

or the economy as a whole.

Banks are also taking cost-saving mea-

These uncertainties may be exacerbated

WEAKER CONSUMER DEMAND AND INVESTMENT

sures with a possible impact on many busi-

by possible political turbulence associated

Another major challenge for local businesses

nesses.

with the two rounds of elections this year

“We will reduce investment, train fewer people. (…) Banca Transilvania was planning to renovate over 200 branches. That means dozens of construction firms will not get these contracts,” Banca Transilvania CEO Omer Tetik said in a press conference. A significant impact can be expected in the construction sector as the government has introduced a higher minimum guaranteed wage of RON 3,000 for employees of construction companies and their suppliers. In this sector, a second major impact could come from lower public and private is the slowdown of consumer demand following years of government wage-led growth policies which boosted consumer spending.

investment. “Investment could fall further in 2019-20

and another two in 2020. Analysts have already begun to sig-

after the financial conditions tightened sig-

nificantly cut their GDP growth forecasts in

nificantly in 2018 due to higher interest rates

Romania this year following the introduction

posting two-digit growth rates, but last year

and credit constraints imposed by the central

of the new taxes.

the first signs of deceleration appeared as

bank. As a result, building output is likely to

consumer spending rose by only around 6

rise at a slower pace and could be completely

nounced that they have cut their forecast to

offset by a further drop in infrastructure

2.8 percent for 2019, and other economists

works,” UniCredit analysts warn.

also expect GDP growth rates of close to 3

Until 2017, consumer demand had been

Banca Transilvania analysts recently an-

percent, according to the latest forecasts. This trend will accelerate further in 2019 as most analysts expect the consumer demand growth rate to slow to maximum 4 percent. “Despite the government’s ambitious plan to increase wages and pensions before the elections, private consumption growth is likely to slow. A worsening outlook for exporters will dampen wage indexation in the private sector,” UniCredit analysts predict. But against this background, some businesses will be more affected than others as the government has chosen to apply new taxes only in some sectors. In energy and telecom, new taxes could

percent.

UNPREDICTABLE ECONOMY

But some analysts are already warning

“In 2019, Romania will be like a tightrope

about the possibility of a recession in Roma-

put pressure on production, investment and

walker whose safety net has begun to split.

nia. “Factoring in the contractionary impact

employment.

Any increase in the wind will become a threat

of the tax package, as well as external and

to him, and he risks an economic and finan-

domestic risks, a technical recession in 2020

already warned that companies in the sec-

cial accident,” said Braun-Erdei of Romania’s

cannot be ruled out,” UniCredit economist

tor are preparing to reduce production and

situation.

Dan Bucsa cautioned.

A Romanian oil industry association has

www.business-review.eu Business Review | February 2019

BLOCKCHAIN 23

Modex CEO: ‘Mainstream adoption of blockchain is inevitable, will be customer-driven’ Launched last year, Modex, a Bucharest-based blockchain startup with footholds in London, Hong Kong and, starting this month, that highly coveted presence in Silicon Valley, brings to the tech scene an inclusive business model that supports its mission to enable decentralized creativity in the blockchain space. To find out more about the solutions and tools it offers clients and developers, BR spoke to Modex founder & CEO Mihai Ivascu. By Georgeta Gheorghe Marketplace and Modex Blockchain Academy,

chain startups that offer a made-to-measure

and reach a USD 100 mln valuation.

approach including both functionality and implementation solutions will always have an

BLOCKCHAIN’S MAINSTREAM ADOPTION WILL BE CUSTOMER-DRIVEN

edge over the large providers of blockchain

Modex counts among its clients international

that take into account both the clients’ busi-

companies from sectors as varied as security,

ness model and the specific problem they

oil and gas, food and healthcare. “Our clients

want to solve. We can do that by developing

include one of the largest healthcare com-

a product of blockchain as a service after

panies in Canada, for which we developed

consulting with the client. Unlike large com-

an app for the North American markets. The

panies, such as IBM, which offer raw tools,

app, which took six months to develop, helps

the foundation layer that represents only the

patients manage appointments with medical

basis of the solutions, we take charge of the

providers and keep track of medications, X-

execution and implementation of the block-

rays and lab results. It also allows healthcare

chain solution for companies of all sizes,” he

providers to maintain constant communica-

tells BR.

solutions. “We offer customized solutions

tion with patients and review treatment,” the entrepreneur says. “To develop it we used

BUILDING AN INCLUSIVE BUSINESS MODEL

hyper ledger blockchain technology, more

By design, Modex positions itself as a technol-

specifically Sawtooth. It is a good use case

ogy empowerment platform that promotes

odex was founded by Ivascu in

for hyper ledger because this way the patient

wide access to tools for blockchain developers

March 2018 as a spinoff of the UK-

is the actual owner of the healthcare data in

as well as access to a marketplace where they

based M3Holdings Group, owner of

the app and has the confidence that the data

can monetize their skills. “We strongly be-

MoneyMailMe, a fintech startup the entrepre-

is true and has not been tampered with. The

lieve that, in order for innovation to happen,

neur successfully launched in 2015. With a

immutable log trail that blockchain technol-

one must have exposure to learning oppor-

60-strong Bucharest-based team, the startup

ogy creates can provide all the information

tunities. That is why, via our Modex Block-

built on the advantage of having international

needed for the user concerned with the valid-

chain Academy we offer tools and access to

exposure from the outset and quickly at-

ity of the data,” Ivascu explains.”

information and training modules, enabling

tracted USD 10 mln in funding. “We launched

He adds that blockchain solutions will in-

decentralized creativity in the blockchain

the alpha version of the Modex ecosystem

tegrate seamlessly into the existing program-

space,” the entrepreneur explains. Adding

in mid-March last year, then followed it with

ming language used by a company’s core IT

to that, the Modex Blockchain Marketplace,

the beta launch in September. Since then,

systems, without the need for reinventing or

a decentralized application marketplace

we have been implementing constructive

creating a new system. “They will be easily

(DApps), connects developers with potential

feedback from the developer community into

embedded,” he says. “Mainstream adoption

clients, as well as the opportunity to bid to

the lineup of products,” says Ivascu. Riding a

is inevitable and will be customer-driven.

develop solutions for companies and vie for

wave of momentum, the startup has entered

Customers will demand more transparency

bounties. Next, the Modex CEO has expansion

what Ivascu calls an “accelerated growth

and accountability, and will ask companies to

in sight.“We set February 8 as the date of the

mode,” which saw Modex earn a roster of in-

provide them with access to their data in real

global launch of the final Modex Blockchain

ternational clients, expand its reach across the

time, driving them to look for solutions.” In

Unified Developer Ecosystem, which will take

developer community via its Smart Contract

the overall ecosystem, Ivascu argues, block-

place in Silicon Valley, at Stanford University.

www.business-review.eu Business Review | February 2019

24 STARTUP

Industries turning ‘hot’ for local startup scene in 2019 While startups in the internet, software and industrial sectors were some of the most attractive for global investors in the last quarter of 2018, with EUR 5 billion worth of funding committed in Europe alone, investment players on the Romanian market are looking for early-stage firms with high potential to scale up, something that is most visible in the tech sector. By Ovidiu Posirca

Going international is turning into a mindset for Romanian startups

mall and medium-sized enterprises

BR. His fund has a starting capital of EUR 45

ing process in areas such as fintech, edtech,

have “huge potential” in Romania,

million and its main investor is the European

energy, agtech and cybersecurity,” he told BR.

says Andrei Gemeneanu, co-founder

Investment Fund. Morphosis Capital targets

Last year, the biggest funding raised by a

of Morphosis Capital, a newly formed private

investments in the EUR 5 million – EUR 15

Romanian startup went to UiPath, the pro-

equity firm.

million band in local SMEs.

vider of robotic process automation services.

“From our investment analysis, when we

For Claudiu Vrinceanu, founder of Ris-

The startup, which is Romania’s first unicorn,

talk about industries with potential, we look

ersNet, a platform for future founders, high

reached a valuation of around USD 3 billion

at trends in Western Europe, which, often,

growth potential and the ability to go interna-

after landing USD 225 million in a Series C

after some time become economic trends in

tional in the first two years of activity can be

funding round. Its portfolio already includes

Central and Eastern Europe. So we see attrac-

seen in the tech sector.

large corporate customers of the likes of BMW

tive opportunities in FMCG, niche medical services and B2B services,” Gemeneanu told

“I am referring here to Romanian startups with the potential to go through a blitz-scal-

Group and Huawei. Romanian IT startups are also becoming more mature and there is

www.business-review.eu Business Review | February 2019

STARTUP 25

a clear trend of investments in products and

enter successfully on international markets,”

of mega-round activity, which means deals

B2B businesses, says Mircea Vadan, managing

said the co-founder, adding that the private

valued at USD 100 million and above.

partner at Activize.Tech, a consultancy firm

equity sector can provide working solutions

working with startups and venture funds.

for this goal.

North America saw 188 mega-rounds in 2018, while Asia was second with 162 transactions. The European market registered only

“Entrepreneurs and investors have started to realize that a startup geared towards

SECTORS WITH THE MOST DEALS

26 such funding deals, according to the CB In-

consumers in Romania is riskier, but based

In the fourth quarter of 2018, startups in

sights and PwC report. Europe is also ranked

on the human capital in the technology field

the internet sector raised USD 9.1 billion

third in terms of median deal size, in all the

they can provide more complex products for

through 540 deals. This was the industry that

development stages of a firm. For instance,

medium-sized companies and enterprises,”

generated the bulk of transactions on the US

the later-stage median deal size was USD 61.5

Vadan told BR. He cites process automation,

market, according to a report by CB Insights

million in Asia, while in Europe and North

and PwC. Healthcare was second with USD 4 billion and 162 deals, while mobile & telecommunications attracted USD 3.5 billion through 150 deals. Next was software (non-internet/mobile) with USD 3 billion worth of fresh investments through 111 deals, while startups in the consumer products & services sector secured USD 382 million from 51 deals. However, the largest funding deal in the last quarter of 2018 did not come on the US market, but in Asia. Coupang, a mobile commerce startup, got USD 2 billion from Softbank Group. The bigresources consumption monitorization and

gest venture capital deal of the year involved

America it stood at USD 20.5 million and USD

management efficiency as some of the areas

Ant Financial, the Chinese fintech company,

36.3 million, respectively.

on the radar of local investors.

which secured USD 14 billion in a Series C

When the first startup started by Romanians got unicorn status, meaning a firm with a valuation over USD 1 billion, the local

“Some markets can only grow at a certain

funding round, taking its estimated valuation

pace, no matter how much money you throw

to USD 150 billion.

at them,” Joe Horowitz, managing general

The funding deals recorded on the Asian

partner at Icon Ventures, told the Wall Street

entrepreneurial market got a shot in the arm,

and US markets dwarfed those recorded on

Journal in an article published last November.

at least in terms of confidence. However, few

the European startup scene.

He also found the large funding rounds and

Romanian companies achieve international

The biggest investment here was attracted

increased valuations concerning, according

success. The co-founder of Morphosis Capital

by Berlin-based Auto 1, the online market-

to the business journal. The biggest global

reckons that it’s time the country had “solid

place, which got EUR 460 million in funding

funding “whale” for startups remained the

national champions.”

from SoftBank’s Vision Fund, according to a

SoftBank Group’s USD 92 billion Vision Fund.

report by Pitchbook.

Up to now, no Romanian startup has received

“What is missing is the development capital and, even more, the necessary skills to

Europe is also lagging behind in terms

any funding from this source.

TOP 5 GLOBAL DEALS IN Q4 2018 Company

Location

Sector

Industry

Coupang

Seoul, South Korea

Mobile & Telecommunications Mobile Commerce

Lu.com

Shanghai, China

Internet

Value of deal

Select Investors

USD 2 bln

Softbank Group

Accounting & FinanceUSD 1.3 bln

All-Starts Investment,

Goldman Sachs, LionRock Capital Epic Games

Cary, United States

Software (non-internet/mobile) Gaming

USD 1.25 bln

ICONIQ Capital, KPCB,

KKR & Co. View

Milpitas, United States Industrial

General Building Materials USD 1.1 bln

SoftBank Group

Tokopedia

Jakarta, Indonesia

E-commerce

SoftBank Group,

Internet

USD 1.1 bln

Alibaba Group, Sequoia Capital India Source: PwC | CB Insights MoneyTree Report

www.business-review.eu Business Review | February 2019

26 STARTUP

EU flexes funding muscle for Romanian startups in deals with venture capitalists Four new private equity and venture capital funds worth over EUR 100 million, with the EU as major investor, have appeared on the Romanian market in the last year, targeting the growing local entrepreneurial ecosystem. EU money could become a critical building block for the future of entrepreneurship, as the government recently rolled out a new taxation package for large companies that might inhibit future investments and hurt the economy, warn commentators. By Ovidiu Posirca

Funding from the EU plays a key role in the local entrepreneurial ecosystem

he focus of EU funds on Romanian

banks’ assets and the economic turbulence

gested that innovative entrepreneurs should

entrepreneurship comes just as the

in Romania will clearly impact established

compete directly for funding under the Hori-

government decided to increase

strategies. One of the potential customers

zon 2020 program, as funds managed by the

the tax burden for banks, utility firms and

in the corporate area decided to delay an

Romanian state have cumbersome approval

telecom players. Entrepreneurs and small

innovation project – planned to last five years

procedures.

businesses may face a double whammy as

– because of this. Many other companies will

financial groups could move to tighten lend-

be tempted to cut innovation or marketing

NEW FUNDING KIDS ON THE BLOCK

ing restrictions and restrict access to funding.

budgets, especially those that didn’t have

Meanwhile, the European Investment Fund

Meanwhile, companies in the financial, en-

clear enough results from their previous col-

(EIF) has backed several funds that invest in

ergy and telecom industries have been back-

laborations with the entrepreneurial environ-

local companies with high growth potential.

ing acceleration programs for start-ups. Some

ment,” says Mircea Vadan, managing partner

GapMinder, the venture capital fund, was

banks have even bought stakes in Romanian

at Activize.Tech, a consultancy firm working

launched in early 2018, with an initial budget

startups, for instance in the fintech sector. It’s

with startups and venture funds. He adds that

of EUR 26 million. It was created following

not clear if these companies will continue to

companies that understand that innovation

selection by the European Investment Fund.

fund initiatives designed to promote entre-

takes time and money will continue to invest

The fund is mostly financed via the Competi-

preneurship in Romania under the new fiscal

for long-term benefits.

tiveness Operational Program 2014 – 2020

conditions. “My supposition is that the taxation of

Asked if EU money could be a funding alternative for entrepreneurs, Vadan sug-

and co-financed by the European Fund for Regional Development. It already has a port-

www.business-review.eu Business Review | February 2019

STARTUP 27

folio of early-stage investments in Romanian

fund aims to help Romanian companies go

startups.

international.

Among the funded companies is Sypher,

“In my opinion, this trend will radically

including entrepreneurs.

a startup that has developed a platform

change the investment climate in Romania,

ALTERNATIVE FUNDING OPTIONS FOR ENTREPRENEURS

designed to help companies comply with

with a direct impact on the startup ecosystem

Small business owners have several ways

the new General Data Protection Regula-

that has scale-up potential on global mar-

to fund their operations with EU money.

tion (GDPR). Last year, it got EUR 300,000

kets,” Claudiu Vrinceanu, business consultant

Microenterprises and SMEs in the IT field can

from GapMinder. Mihai Ghita, co-founder of

and founder of RisersNet, a platform for

get grants of between EUR 500,000 and EUR

Sypher, told BR that the funding will be used

future founders, told BR. He was referring to

3.5 million through the Operational Program

to develop the platform and expand abroad.

the creation of new investment funds backed

Competitiveness (POC). Calls for funding

“There are ongoing negotiations to launch it

by EU funds in Romania.

projects are open until March 11. Entrepre-

MICROENTERPRISES TO TAKE HIT FROM NEW BANK ASSETS TAX A new tax on bank assets linked to the evolution of interest rates on the interbank market (ROBOR) sent a shockwave through the economy at the start of this year. Its full effects are still hard to forecast at present, but SMEs are set to take the biggest hit. In short, banks’ assets will be taxed if the ROBOR goes over 2 percent. The tax rate is progressive, starting in four European countries,” says the entre-

at 0.2 percent and rising to 0.9 percent of the

neurs can also get up to EUR 5 million in

preneur.

assets’ value. It will be payable on a quarterly

EU funds through the Regional Operational

Elsewhere, Morphosis Capital, a private

basis and the state aims to collect at least EUR

Program (POR). This new funding line will

equity firm founded by Romanians, closed

800 million from lenders in 2019. Some of the

be launched later this year, according to

its first fund, worth EUR 45 million. Its main

biggest banks have already warned that this

startupcafe.ro. Entrepreneurs in the food

investor is the EIF. The PE fund targets small

tax will wipe out their profits and are already

business can secure grants of up to EUR 2.5

and medium-sized enterprises (SMEs) in vari-

making contingency plans that drastically

million. Requests may be submitted until

ous sectors such as tech and FMCG.

limit new investments and enforce tighter

mid-2019 to the Agency for Funding Rural

lending conditions for companies.

Investments (AFIR).

Andrei Gemeneanu, co-founder of Morphosis Capital, acknowledges that EU funds

The over-taxation of banks depending on

SMEs can get bank loans at lower costs

have helped Romanian companies invest in

the ROBOR will bring additional costs for mi-

from lenders that have signed a deal with

technology and bring their products up to

croenterprises looking to get a loan and will

the EIF. The total approved budget for loans

international standards.

also limit the volume of new loans, which will

stands at EUR 250 million. Overall EIF fund-

lead to a reduction in investments, consump-

ing in Romania had exceeded EUR 1 billion

companies to develop the sales and market-

tion and economic growth, warned Florin

and mobilized EUR 2.8 billion by June 2018.

ing capabilities that could truly help them

Jianu, president of the National Council of

Over 19,000 SMEs have benefited from EIF

penetrate international markets and become

Small and Medium-Sized Private Enterprises

transactions, according to fund data.

international leaders, and this is the area in

in Romania (CNIPMMR).

“However, the challenge is for these

which we want to make a difference,” Gemeneanu told BR.

“Microenterprises will suffer the most

Another state-backed scheme for new companies is called Start-up Nation. The

throughout 2019 from the perspective of ac-

government will provide grants of up to EUR

cess to funding because these firms have fully

43,000 to 10,000 microenterprises and SMEs.

in the local venture capital market with a

used the potential of supplier loans, have the

Funding requests can be submitted online

starting capital of EUR 28 million. It is backed

least disposable cash and will rely on bank

until February 12. Eligible companies need to

by EU money and targets early-stage startups

loans to continue their operations; taking this

have started operations after January 31 2017.

in the tech field and other sectors with strong

into account, the new fiscal regulation and

capability to create Intellectual Property (IP).

increased financing costs for new loans might

support schemes designed to help trading

In late December, the EIF also approved

even generate a recession – the insolvency of

companies and enterprises aiming to expand

many small companies,” Jianu told BR.

abroad. However, it’s unclear how much of

Early Game Ventures is another new player

funding for the Black Sea Fund. It has an initial investment budget of close to EUR

Vrinceanu of RisersNet adds that the

The government has run additional

the funds will be allotted this year, consider-

43 million and targets SMES with an annual

medium-term effect of over taxation will

ing that the state budget for 2019 hasn’t yet

turnover of up to EUR 50 million. The new

translate into higher prices for all consumers,

been approved.

www.business-review.eu Business Review | February 2019

28 DEALS OF THE YEAR

Local M&A market remains steady after strong summer The mergers & acquisitions (M&A) market in Romania has had a momentous summer. In quarter three, factoring in deals whose disclosed total value equals EUR 809 million, the market more than doubled from the EUR 391 million of the second quarter. By Anda Sebesi (NPL) portfolios with a face value of EUR 1 billion in 2018, according to Deloitte Romania estimations, significantly down from EUR 2.1 billion, in 2017. “The significant decline of NPL transactions in 2018 is the result of a decreasing NPL stock and of the legislative changes. We expect NPL transactions to further decrease in 2019, considering the present context, even though banks still have an on-balance sheet stock of NPLs estimated at EUR 3-4 billion, as well as a similar volume off-balance sheet,” said Radu Dumitrescu, partner transaction support, Deloitte Romania.

WHAT’S NEXT IN 2019? “As this is an election year, international investors will probably be more cautious. The global turmoil caused by trade disputes and Brexit adds further uncertainty. If we are lucky, the number and value of transactions will be near that of 2018. That said, a number of interesting sale processes begun late last The 2019 M&A market will count around 100 deals

year in diverse sectors are expected to close in the first half of 2019. Real estate M&A will continue apace while healthcare and technol-

verall, the 2018 Romanian M&A

companies’ total value has been assessed at

ogy will also be of interest,” says Perry Zizzi,

market was estimated by Deloitte

an average of 8.5 x EBITDA, slightly above

Romania managing partner at Dentons.

Romania at between EUR 3.8 and

those in the CEE area, of 7.8 x EBITDA, ac-

Deloitte predicts that the 2019 M&A mar-

4.3 billion, including deals with undisclosed

cording to a Deloitte Romania analysis based

ket will count around 100 deals, keeping a

values. It was less transparent than in previ-

on Mergermarket data.

similar trend to the 2008-2018 period, accord-

“Over the past three years, the indus-

ing to Deloitte Romania Financial Advisory

number of deals with disclosed values. Based

tries with the highest EBITDA multiples in

estimations. Also, the average transaction

on disclosed values, in 2018 the market con-

Romania have been consumer products,

value for 2019 is estimated by Deloitte Roma-

tinued to be dominated by strategic investors,

healthcare and TMT, (technology, media and

nia at EUR 40 to 50 million, slightly above the

which were involved in 56 percent of transac-

telecommunications) while the lowest have

EUR 40 million average in the past decade.

tions, while private equity funds accounted

been construction and retail,” added Marius

“Despite the harsh fiscal context at the

for 39 percent of the disclosed volume.

Vasilescu, financial advisory director at De-

beginning of 2019, we do not anticipate major

loitte Romania.

consequences on the M&A market in the first

ous years, with a significant decrease in the

As far as 2016-2018 M&A deals with disclosed values are concerned, Romanian

Romanian banks sold non-performing loan

half of the year, but rather towards year-end,

www.business-review.eu Business Review | February May 2016 2019

DEALSCOVER OF THESTORY YEAR 14 29

when the window of opportunity may close, depending on the macroeconomic context. We expect the most dynamic sectors of the M&A market in 2019 to be technology, retail, healthcare, consumer goods and real estate,” said Ioana Filipescu, corporate finance partner at Deloitte Romania.

REAL ESTATE MARKET According to Razvan Iorgu, managing director at CBRE Romania, the Romanian real-estate market continued to grow in 2018, although not as quickly as in 2017. “We saw major new players entering the market, such as Lion’s Head, Hagag Development, MAS Real Estate, ForeVest Capital Partners etc. According to

Razvan Iorgu, CBRE Romania

our estimations, the number of acquisitions will remain at a good level throughout 2019,

ensemble Campus 6, developed by Skanska,

real estate sectors: office, retail and indus-

on all the commercial real estate segments:

to CA Immo; and the sale of Militari Shopping

trial. Major acquisitions were intermediated

office, retail and industrial,” says Iorgu.

Center, a commercial center in west Bucha-

in 2018, and we believe that 2019 will be a

rest, to the South African investment fund

year with important activity from this point

Mas Real Estate.

of view,” says the MD. He adds that the prime

The biggest transactions in 2018 were the sale of The Bridge office complex, developed by Forte Partners, to Dedeman; the sale of

According to Iorgu, office and retail were

yield (the yield registered by class A projects

the Oregon Park office complex, developed

the stars of 2018, with the biggest transac-

in the best positions) will continue its com-

by Portland Trust, to Lion’s Head Investment;

tions coming on these sectors. “For this year,

pression on all the commercial segments in

the sale of the first office building from the

the main trend is the stabilization of all the

2019. “This is a strong indicator that the local market is active, registering a good level of investments and transactions.”

Romanian M&A market, Q3 2018 • • • •

market value (transaction with disclosed values): EUR 809 million; average value: EUR 90 million; market value (including Deloitte estimates of undisclosed deals): EUR 1.4 to 1.6 billion; number of deals (including undisclosed deals): 27.

Source: Deloitte

In his opinion, the Romanian real estate market is maturing, and is strongly influenced by other countries in the region, such as Hungary, Slovakia, the Czech Republic, and Poland. Currently, the retail segment has the smallest prime yield (6.5 percent, at the end of Q4 2018), followed by the office space sector (7 percent, in Q4 2018), and the industrial sector, which had the slow-

The largest deals announced in Q3 2018

est development in 2018 (7.75 percent in Q4

• •

major potential and will continue to attract

• • • •

largest deals announced in Q3 2018: the acquisition of Zentiva Group, including Zentiva SA Romania, formerly Sicomed, by Advent International (deal value estimated at EUR 287 million, by applying the disclosed EBITDA multiple to the 2017 results of Zentiva SA); the sale of Agricost to Al Dahra group, the largest deal in Romanian agriculture (value of EUR 200 million); the acquisition of a 7.5% stake in UiPath by a consortium of investors led by Sequoia Capital, at a company valuation of EUR 2.6 billion (deal value of EUR 194 million); the acquisition of The Bridge office building by the Paval brothers from Forte Partners (deal value undisclosed); the sale of Urgent Cargus by Abris investment fund to Mid Europa, currently the largest deal in this sector so far (deal value undisclosed).

Source: Deloitte

2018). “We estimate that in 2019 we will see new players entering the local market, and foreign investors will continue to be the most active. The Romanian real estate market has big companies. Major international names started projects in Romania last year, and this trend will be evident in 2019 as well,” adds the CBRE representative. “2019 is shaping up to be a year with similar transactional activity as large mandates are in different stages of negotiation. In terms of demand in 2019, we expect continuous growth, as new players shift their focus towards Romanian ground,” predicts Iorgu.

www.business-review.eu Business Review | February 2019

30 DEALS OF THE YEAR

TRANSACTION: RTC Proffice Experience

Medical Centers

LEGAL TEAM SELLER: Tuca Zbarcea & Aso-

buys the cleaning and hygiene products

ciatii

distribution from Paper Plus SRL

INDUSTRY: Healthcare LEGAL TEAM BUYER: Popovici Nitu Stoica &

INDUSTRY: Office supplies LEGAL TEAM BUYER: Popovici Nitu Stoica

Asociatii

TRANSACTION: Erste Group buys the entire

TRANSACTION: Dedeman buys Cemacon and

stake held by SIF Oltenia in Banca Comer-

& Asociatii

Cemacon Real Estate

ciala Romana

TRANSACTION: Voestalpine buys the major-

INDUSTRY: Real Estate and Construction LEGAL TEAM BUYER: Popovici Nitu Stoica &

VALUE OF TRANSACTION: EUR 140 million INDUSTRY: banking LEGAL TEAM BUYER: Tuca Zbarcea & Aso-

ity stake (60 percent) in Travertec Buzau

Asociatii

INDUSTRY: Coating LEGAL TEAM BUYER: Popovici Nitu Stoica

TRANSACTION: Oresa Ventures sales 100 per-

& Asociatii

cent of Fabryo Corporation to AkzoNobel

TRANSACTION: IMMOFINANZ sells two

LEGAL TEAM SELLER: Tuca Zbarcea &

INDUSTRY: Decorative coatings LEGAL TEAM BUYER: Schoenherr LEGAL TEAM SELLER: Popovici Nitu Stoica &

plots of land in northern Bucharest to Speed-

Asociatii

ciatii

TRANSACTION: WDP buys Dunca Logistics

Asociatii; Deloitte was the sell-side M&A lead

Centre

advisor

well Real Estate Development

INDUSTRY: real estate LEGAL TEAM BUYER: Tuca Zbarcea & Asociatii

INDUSTRY: Logistics LEGAL TEAM BUYER: Popovici Nitu Stoica

TRANSACTION: Phoenix buys Farmexim and

& Asociatii

Help Net

LEGAL TEAM SELLER: Moroianu si Asociatii

TRANSACTION: BNP Paribas Leasing Solu-

TRANSACTION: Ameropa buys Sarulesti

INDUSTRY: Healthcare LEGAL TEAM BUYER: Schonherr LEGAL TEAM SELLER: Popovici Nitu Stoica &

agricultural base

Asociatii, D&B David si Baias; Deloitte was the

INDUSTRY: Agribusiness LEGAL TEAM BUYER: Popovici Nitu Stoica

sell-side M&A lead advisor

TRANSACTION: Ameropa buys 40 percent of

INDUSTRY: Leasing LEGAL TEAM BUYER: Clifford Chance Badea LEGAL TEAM SELLER: Tuca Zbarcea & Asoci-

& Asociatii

Promat Comimpex and Agroind Cauaceu

atii, Hengeler Mueller

TRANSACTION: Medicover buys Phoenix

INDUSTRY: Agribusiness LEGAL TEAM BUYER: Popovici Nitu Stoica &

TRANSACTION: Al Dahra Agriculture LLC

Medical Center

Asociatii

buys a project company (Agricost) holding

INDUSTRY: Healthcare LEGAL TEAM BUYER: Popovici Nitu Stoica

LEGAL TEAM SELLER: Kinstellar

the farming rights for approximately 57,000

& Asociatii

TRANSACTION: Medicover buys 80 percent of

INDUSTRY: Agriculture VALUE OF TRANSACTION: EUR 230 million LEGAL TEAM BUYER: Tuca Zbarcea & Asoci-

LEGAL TEAM SELLER: Popovici Nitu Stoica

tions acquires 100 percent of IKB Leasing Romania

ha Pelican Hospital

TRANSACTION: WDP buys CTPark Cluj I INDUSTRY: Logistics LEGAL TEAM BUYER: Popovici Nitu Stoica

INDUSTRY: Healthcare VALUE OF THE TRANSACTION: EUR 23 million LEGAL TEAM BUYER: Popovici Nitu Stoica &

& Asociatii

Asociatii

LEGAL TEAM SELLER: The Law Chamber Theodor McCann

& Asociatii

atii (legal advisor), BAC Romania (acting as Financial Advisor to Al Dahra)

TRANSACTION: Vodafone Romania acquires TRANSACTION: ENGIE acquires 60 percent

Evotracking, an IoT company and player on

of Flashnet, an IoT company, specialized in

the local fleet management market

TRANSACTION: Dedeman buys The Bridge

Smart Public Lighting

from Forte Partners

INDUSTRY: energy, technology LEGAL TEAM SELLER: Tuca Zbarcea & Asoci-

INDUSTRY: IT&C LEGAL TEAM BUYER: Dobre, Tulei & Asoci-

INDUSTRY: Office Real Estate VALUE OF TRANSACTION: EUR 200 million LEGAL TEAM BUYER: Popovici Nitu Stoica

atii

& Asociatii

TRANSACTION: RINGIER SPORTAL S.R.L.

LEGAL TEAM SELLER: PeliFilip

buys the leading Romanian sports brand

TRANSACTION: Medicover buys Academica

atii

LEGAL TEAM SELLER: Tuca Zbarcea & Asociatii

TRANSACTION: CCC buys its own franchise

Gazeta Sporturilor including GSP.ro

in Romania

INDUSTRY: media

INDUSTRY: fashion retail

www.business-review.eu Business Review | February May 2016 2019

DEALSCOVER OF THESTORY YEAR 14 31

VALUE OF TRANSACTION: EUR 33 million LEGAL TEAM BUYER: KPMG LEGAL TEAM SELLER: Tuca Zbarcea & Aso-

SAPE, a company managing State-owned

INDUSTRY: Drinks manufacturing and

stakes in the energy sector coordinated by the

distribution

Ministry of Energy with projected investment

ciatii

values of over USD 1 billion

LEGAL TEAM BUYER: Mitel and Partners LEGAL TEAM SELLER: Reff & Associates

TRANSACTION: The Rohatyn Group acquires

INDUSTRY: energy LEGAL TEAM KMGI: Suciu Popa & Asociatii

TRANSACTION: The Dutch businessman Ben Martens sells the last 15 percent of the shares

Romanian pet supplies company Animax

in three Romanian cleaning companies to

INDUSTRY: pet shop – retail LEGAL TEAM BUYER: Tuca Zbarcea & Asoci-

TRANSACTION: Abris Capital Partners sells courier company Urgent Cargus to Mid Eu-

Samsic Group

atii, Baker & McKenzie

ropa Partners

LEGAL TEAM SELLER: RTPR Allen & Overy; Deloitte was the sell-side M&A lead advisor

INDUSTRY: courier services LEGAL TEAM SELLER: Clifford Chance Badea

INDUSTRY: cleaning VALUE OF TRANSACTION: EUR 2 million LEGAL TEAM SELLER: Reff & Associates

TRANSACTION: Eurotransgaz SRL (sub-

TRANSACTION: Czech Media Invest (CMI)

sidiary of Transgaz) acquires S.E. Vest-

acquires the CEE radio assets of multinational

moldtransgaz, operator of the natural gas

media conglomerate Lagardère Group

supply network in the Republic of Moldova

INDUSTRY: Media VALUE OF TRANSACTION: EUR 73 million LEGAL TEAM BUYER: Clifford Chance Badea

INDUSTRY: energy VALUE OF TRANSACTION: the acquisition price was EUR 9.2 million with further investments of up to EUR 93 million over the

TRANSACTION: BNP Paribas Leasing acquires

next two years

two Romanian companies from German-

TRANSACTION: Medlife buys Polisano INDUSTRY: healthcare LEGAL TEAM SELLER: D&B David si Baias TRANSACTION: Centrul Medical Policlinico di Monza buys Clinica Proestetica

INDUSTRY: healthcare LEGAL TEAM SELLER: D&B David si Baias

LEGAL TEAM BUYER: Tuca Zbarcea & Asoci-

based group IKB

TRANSACTION: Epta SpA buys DAAS Inter-

atii, Turcan Cazac

INDUSTRY: Financial Services LEGAL TEAM BUYER: Clifford Chance Badea

national

TRANSACTION: Advent International buys

Deloitte was the exclusive advisor of the sell-

INDUSTRY: horeca LEGAL TEAM BUYER: PwC, D&B David si

Zentiva, Sanofi’s European generics business

side for this transaction.

Baias (due dilligence), Schoenherr (legal

INDUSTRY: pharmaceuticals VALUE OF TRANSACTION: EUR 1.9 billion

TRANSACTION: CA Immo acquires Campus

LEGAL TEAM SELLER: Radu si Asociatii SPRL

assistance)

(global value of the deal)

6.1 office building from Skanska

LEGAL TEAM BUYER: Freshfields Bruckhaus

LEGAL TEAM SELLER: Weil, Gotshal &

INDUSTRY: Real estate VALUE OF TRANSACTION: EUR 53 million LEGAL TEAM BUYER: Clifford Chance Badea LEGAL TEAM SELLER: Peli Filip, Dentons

Manges; Tuca Zbarcea & Asociatii

PwC - financial and fiscal due dilligence for

D&B David si Baias

Kappa Property Development Company SRL

LEGAL TEAM SELLER: SCP Radulescu, Ili-

which owns Campus 6.1 office building

escu, Maravela & Asociatii

and Engie through its subsidiary Engie En-

TRANSACTION: Damen Group Netherlands

TRANSACTION: Ioan Biianu buys Glisando

ergy Management Romania S.R.L. for the gas

buys a majority participation in Daewoo Man-

Timisoara

supply from the offshore Midia Gas Develop-

galia, the biggest Romanian shipyards

ment Project (“MGD”).

INDUSTRY: agriculture LEGAL TEAM BUYER: D&B David si Baias,

INDUSTRY: energy LEGAL TEAM BSOG: Suciu Popa & Asociatii

INDUSTRY: shipyard VALUE OF TRANSACTION: USD 26.1 million LEGAL TEAM BUYER: Deloitte Legal Neth-

and Herbert Smith Freehills LLP acting as

erlands (in relation to Dutch law), Reff &

BSOG’s adviser, on UK legal matters

Associates

Deringer, CMS Cameron McKenna Nabarro Olswang; Kirkland & Ellis

TRANSACTION: Gas Sales Agreement signed

TRANSACTION: Rombat buys 35 percent of Prime Motors

INDUSTRY: car parts LEGAL TEAM BUYER: PwC (due dilligence),

between Black Sea Oil & Gas S.R.L. (BSOG)

LEGAL TEAM SELLER: CMS TRANSACTION: Structuring, negotiating and creating the Kazakh-Romanian Investment

TRANSACTION: Halewood Group exits from

Fund as a joint-venture between KMGI and

Spirits Limited

PwC (financial advisory)

LEGAL TEAM SELLER: BDO Romania, BAC Romania

TRANSACTION: Ipsos buys Clintelica INDUSTRY: software LEGAL TEAM BUYER: D&B David si Baias

www.business-review.eu Business Review | February 2019

32 DEALS OF THE YEAR

PwC – financial and fiscal due dilligence for

Prague for VTB Bank (Europe) SE; Bulboaca

Shopping Center (Brasov)

Portland Trust Development One

& Asociatii for Chimcomplex, Maravela &

INDUSTRY: retail VALUE OF TRANSACTION: EUR 4 million LEGAL TEAM BUYER: PwC (due dilligence),

TRANSACTION: PLC SpA buys 51 percent of

for Chimcomplex, Bondoc & Asociatii for

Monsson Operations

Oltchim, Deloitte UK and Deloitte Romania

INDUSTRY: renewable energy FINANCIAL ADVISORY FOR THE SELLER:

LEGAL TEAM SELLER: Bondoc & Asociatii

D&B David si Baias

Asociatii for Chimcomplex, Reff & Asociatii

on financial aspects

TRANSACTION: Business transfer between

KPMG

Dupont Exim (seller) and Nordic Import

LEGAL TEAM BUYER: PwC TLS and PwC

Export (buyer)

Romania

logistics/industrial development in Romania

INDUSTRY: bakery, pastry and confection-

LEGAL TEAM SELLER: Dentons

INDUSTRY: real estate LEGAL TEAM BUYER: Dentons LEGAL TEAM SELLER: Oncescu and Associates

ery products

TRANSACTION: VGP buys land for envisaged

LEGAL TEAM BUYER: D&B David si Baias

TRANSACTION: DS Smith buys EcoPack and

TRANSACTION: Proleasing Motors buys INDUSTRY: automotive LEGAL TEAM BUYER: D&B David si Baias

INDUSTRY: packaging VALUE OF TRANSACTION: EUR 208 million LEGAL TEAM BUYER: RTPR Allen & Overy LEGAL TEAM SELLER: Peli Filip

TRANSACTION: Xella Germany buys Macon

TRANSACTION: United Petfood Producers

INDUSTRY: IT LEGAL TEAM BUYER: DENTONS LEGAL TEAM SELLER: Meitar Liquornik

from Enterprise Investors

buys Nordic Petfood Production and Nordic

Geva Leshem Tal Law Offices -coordinated

Petfood Distribution

the transaction from Israeli law perspective

nance (lead advisory services).

INDUSTRY: pet products LEGAL TEAM BUYER: Schoenherr si Asociatii LEGAL TEAM SELLER: Radu si Asociatii SPRL

TRANSACTION: Kohlberg Kravis Roberts

TRANSACTION: Crucero LTD buys 100

| EY Law

EcoPaper Automar

INDUSTRY: construction LEGAL TEAM SELLER: PwC Corporate Fi-

percent of High-Tech Systems & Software, Winsoft Suport and High Tech IT&C Services from Klasabove

INDUSTRY: software LEGAL TEAM SELLER: FidaSmart

TRANSACTION: Unilever buys Betty Ice INDUSTRY: FMCG LEGAL TEAM BUYER: Eversheds Sutherland LEGAL TEAM SELLER: Maravela & Asociatii

PwC – financial and fiscal due dilligence for the companies

TRANSACTION: Revetas Capital and Cer-

TRANSACTION: Amdocs Canadian Managed Services Inc. buys a Canadian based company

&Co binding offer for the Spreads business of Unilever

INDUSTRY: private equity VALUE OF TRANSACTION: EUR 6.8 billion LEGAL TEAM BUYER: Dentons, Simpson Thacher & Bartlett

TRANSACTION: FMC Corporation buys a porTRANSACTION: Banca Transilvania buys Banc

tion of DuPont’s Crop Protection business

Post

INDUSTRY: manufacturing, chemicals VALUE OF TRANSACTION: The transaction

INDUSTRY: banking LEGAL TEAM BUYER: Peli Filip LEGAL TEAM SELLER: Shearman and Sterling,

includes consideration to DuPont of USD 1.6

INDUSTRY: real estate VALUE OF TRANSACTION: EUR 60-70 mil-

Schoenherr

of the assets, including cash of USD 1.2 bil-

lion

TRANSACTION: Chimcomplex buys Oltchim INDUSTRY: chemicals VALUE OF TRANSACTION: EUR 40 million LEGAL TEAM BUYER: Dentons for the Special

LEGAL TEAM BUYER: Dentons

Investments Group of Credit Suisse AG on

berus Capital Management buy Alecsandri Estates

LEGAL TEAM BUYER: Wolf Theiss LEGAL TEAM SELLER: Peli Filip PwC (due dilligence) for Alecsandri Estates

billion to reflect the difference in the value lion and working capital USD 425 million.

TRANSACTION: Auchan in relation with the Romanian Competition Council

TRANSACTION: Lion’s Head Investments

the €40 million financing for Chimcom-

buys Portland Trust Development One

plex’s acquisition of certain assets owned

INDUSTRY: retail VALUE OF TRANSCTION: EUR 5 million LEGAL TEAM FOR AUCHAN: Dentons ad-

INDUSTRY: real estate VALUE OF TRANSACTION: EUR 135 million LEGAL TEAM BUYER: Kinstellar LEGAL TEAM SELLER: Peli Filip

by Oltchim. In addition to bank financing,

vised and represented Auchan in obtaining

Dentons also advised the client in relation

the annulment of the EUR 5 million fine

to certain due diligence and structuring is-

imposed by the Romanian Competition

sues; Stratulat Albulescu with White & Case

Council to Real Hypermarkets.

Disclaimer: Please note this list is not exhaustive and only includes some of the most significant transactions of 2018 in Romania

TRANSACTION: TDV SA buys Magnolia

www.business-review.eu Business Review | February 2019

34 CRYPTOCURRENCIES

The future of bitcoin is a bet: USD 100 or USD 100,000 “I’m not prepared to say bitcoin will go to zero. I still own bitcoin,” says Ripple CEO Brad Garlinghouse. It is a statement that sums up the attitude towards cryptocurrencies after last year’s crash, which brought even bitcoin to its knees after a more than 70 percent fall, while the broader market of cryptocurrencies lost nearly USD 700 billion in total capitalization. By Aurel Dragan

BItcoin is not likely to reach the all-time high of almost USD 20,000 anytime soon

n December 2017, bitcoin (BTC) reached

266 to USD 76 before returning to USD 160

important cryptocurrency after a rollercoaster

a historical high of almost USD 20,000. It

in a few hours. Regulators around the world

ride that started eight years earlier – and it

was a peak after several years of growth,

started to look into the transactions and the

went downhill fast. In the first half of 2018 the

bringing billions into a newly formed market.

US Financial Crimes Enforcement Network

price fluctuated between USD 1,480 and USD

The market was discovered by the large popu-

established regulatory guidelines for “decen-

5,848 and it continued to fall, to USD 3,600 in

lation of speculators after 2013. Two years

tralized virtual currencies”. In 2014, another

December.

earlier, in 2011, BTC started at USD 0.30 and

setback came when the Mt. Gox exchange,

went up to USD 5.27, ending 2012 at USD 13.30.

the largest bitcoin exchange at the time, said

for the entire cryptocurrency market. After

At the beginning of 2014, bitcoin was at USD

that 850,000 bitcoins had been stolen from its

the launch of bitcoin in 2009, more and more

770, signaling that it was becoming a world-

customers, amounting to almost USD 500 mil-

cryptocoins started to appear. In December

wide phenomenon.

lion. The price fell from USD 867 to USD 439

2013, there were 59 cryptocurrencies trading,

and remained low until late 2016.

according to Coinmarketcap, while in Decem-

In April, 2013, the main trading platforms, BitInstant and Mt. Gox, experienced process-

In 2017, the price of BTC was USD 998 and

The history of bitcoin is a good showcase

ber 2014, 506 virtual coins were registered.

ing delays due to insufficient capacity, result-

it reached an all-time high in December at

The number grew in spite of the downtrend in

ing in the bitcoin price dropping from USD

USD 19,666. This was the peak for the most

2014; Litecoin fell from USD 17.1 to USD 2.74,

www.business-review.eu Business Review | February May 2016 2019

CRYPTOCURRENCIES COVER STORY 14 35

Peercoin lost 81 percent of its value, Name-

to regulate investment in cryptocurrencies.

limited supply of bitcoin, the increased adop-

coin lost 82.5 percent from USD 4.13 to USD

The central bank, just like the one in Roma-

tion of bitcoin and blockchain and the total

0.72, Quark shed 92.6 percent of its value.

nia, does not recognize bitcoin or any other

cryptocurrency market cap that gives it much

Ripple was the only one that grew, by 7 per-

cryptocoin as a currency, which means that

room for growth.

cent in 2014, from USD 0.022 to USD 0.024.

investment cannot be registered as a foreign

On the other side of the argument is

exchange transaction. So, under Law 30/2019,

Kristjan Dekleva, a Swiss-based financial

to 562 in 2015 and to 644 in 2016, but 2017

earnings from cryptocurrency trading will be

expert, who predicts there will be 10 years of

was the year when the number of ICOs (initial

taxed as “income from other sources” and

turbulence for BTC before it becomes a stable

cryptocurrency offers) took off. By the end of

should be reported in the Single Tax Form.

currency, that can become a viable alterna-

the year there were 1,334 cryptocoins trading.

The tax is the one applied to income, 10

tive for fiat currency. He compares bitcoin

The number of cryptocurrencies climbed

Last year, in spite of the downward

percent.

investments to the DotCom bubble of the

trend, the number of cryptocur-

At current prices, around

90s. “In the short term, falls have been driven

rencies rose to 2,067. We will

USD 3,500 for BTC, there is a

by emotion and in many cases disinforma-

not see the same growth

major problem for miners:

tion – a small rumor can have a big impact,”

this year, according to

the price doesn’t cover the

says Dekleva, noting that demand is driven

analysts, as the bubble

cost. Since it has become

by market speculation, but the absence of

seems to have burst,

more expensive to mine a

institutional investors means the market is

but there is still a high

single bitcoin, the price is

unstable.

number of cryptocoins on trading platforms.

GOODBYE TO THE GOLDEN ERA

calculated at around USD

The Swiss-based expert has a point: no

6,500 (the cost of computers

cryptocurrency is accepted widely as a form

and power consumption), so it is

of payment; there was a wave of stores that

no longer profitable to mine bitcoin.

ing frenzy, bitcoin is not likely to reach the

enrolled for bitcoin payments during 2017, but since the price is so volatile it is impossible

Analysts agree, now, that after the sell-

UP OR DOWN?

to accept a token that today is worth USD

all-time high of almost USD 20,000 anytime

Kenneth Rogoff, former head of the Inter-

4,000 but tomorrow may be USD 3,500. Also,

soon. According to statistics, retail investors

national Monetary Fund, has made several

volatility is the thing keeping institutional in-

lost the most during this bear market and

disparaging remarks about bitcoin. “I think

vestors away and that is where the big money

Unfortunately, that also allowed the transfer

bitcoin will be worth a tiny fraction of what

is, along with the stability that comes with

of money between or to terrorist and criminal

it is now if we’re headed out 10 years from

mid- and long-term investment.

organizations, something that no crypto

now… I would see USD 100 as being a lot more

trader would want.

likely than USD 100,000,” said Rogoff in a

rency market cap, so the way it behaves in the

But the main problem of the cryptocurren-

column for Project-Syndicate in October 2017.

future will be decisive for the entire market.

they are not expected to hurry back. Older clients, more resilient and more trustful in the market, will remain with open positions. To many the downtrend was no surprise. The cryptocoin didn’t enter the market as a store of value, but as an alternative to the centralized ledger transaction, carried through the banks. The distributed ledger technology behind bitcoin and other cryptocurrencies is appealing for those against the centralized system and it is considered very safe without being under the control of an institution.

cies remains: there is no guarantee behind

But not all voices are so pessimistic. John

Bitcoin holds about half of the cryptocur-

At the start of 2019, the market is still so vola-

them, no real value. True, the fiat currency

McAfee, founder of the popular McAfee

tile that no serious prediction can be made for

that we all use is just a piece of paper, but it

antivirus software, is still very positive about

the short term. While crypto enthusiasts see

is backed by the system we are living in, by

bitcoin. “When I predicted bitcoin at USD

BTC at USD 15,000 this year and USD 200,000

governments and central institutions. No one

500,000 by the end of 2020, it used a model

or more in 2020, institutional analysts see

is advised to put their life savings in crypto-

that predicted USD 5,000 at the end of 2017.

the cryptocurrency still falling to close to

currency. Looking at it as an investment, one

BTC has accelerated much faster than my

USD 1,000. It is safe to say that, depending

should put in just as much as one can afford

model assumptions, I now predict bitcoin at

on what regulations appear around the world

to lose.

USD 1 million by the end of 2020,” tweeted

related to crypto, bitcoin may have a better

McAfee. He is basing his predictions on the

future. Or disappear altogether.

Meanwhile, the authorities have started

www.business-review.eu Business Review | February 2019

36 MEDIA

Adding up: local media buying and planning market looks to a promising 2019 According to estimates made last year by media agency Initiative, the Romanian media market registered growth of 13 percent in 2017, taking it to EUR 412 million. The advance, detailed in the new Media Fact Book report, represents the biggest climb since the crisis and brings the local media market close to its 2008 level. By Romanita Oprea

Daniel Ene, Omnicom Media Group Romania

Mihai Trandafir, UM Romania

or 2018, Initiative estimated fresh

increased a lot; many clients have put digital

real challenge for all players to accommodate

growth of 10 percent compared to

thinking in the center of their communica-

the high demand with the limited offer, while

2017, taking the market to EUR 455

tion and business approach. This determined

at the same time not escalating media costs.

million. Initiative estimated TV growth of 10

a change in the market; lots of agencies now

TV will remain the main media in Romania

percent (to EUR 300 million), digital expan-

have 360 digital competences. We have an

in 2019 with a share of approximately 60

sion of 16 percent (to EUR 85 million), a 10

average share of 15 percent media budgets in

percent. Since 2012 digital has become the

percent hike for radio (EUR 26 million) and a

online and 66 percent of total media budgets

second largest media and it will remain so.

5 percent rise in OOH (EUR 30.7 million), with

were invested in television in 2018. We

Digital’s share will continue to slightly grow,

print expected to drop another 5 percent.

expect an investment of 63 percent in TV for

to 25 percent. The other media – radio, OOH,

2019,” added Chirilescu.

print and cinema – will share the remain-

“In 2018, the advertising market grew and almost reached the level of EUR 500 mil-

According to Balotescu, the media

ing 15 percent of the market and they will

lion. In 2019 it could exceed the peak level

industry has been predictable over the past

continue to have a constant evolution,”

of 2008,” said Daniel Ene, COO at Omnicom

year, which is a very good sign for media

concluded Balotescu.

Media Group Romania, a view echoed by by

investment. Consequently, clients have been

Dan Balotescu, managing partner at Media

allocating more money and the media has

Romania, doesn’t have such a rosy opinion of

Investment.

become stronger every year. “For 2019 we

the market perspectives, though he affirms

predict the same trend. Clients will continue

that it has grown steadily over the last three

of Spoon Media, outlined some changes in

to invest in media and the competition will

years, and by about 10 percent in 2018, reach-

the media scene, although she believes it

continue to be tough. At the same time, me-

ing EUR 450 million. “But towards the end

essentially remains the same. “Digital has

dia prices will continue to rise and it will be a

of the year the Consumer Confidence Index

Meanwhile, Claudia Chirilescu, owner

Mihai Trandafir, managing director at UM

www.business-review.eu Business Review | February 2019

MEDIA 37

declined quite significantly as a result of the

ists characterize the

political debate, and the latest Ordinances

Romanian media buying

have generated greater uncertainty for some

& planning industry at

of the industries with significant growth in

this time? Ladies first.

2018. In this uncertain legislative environ-

Claudia Chirilescu per-

ment, predictions for 2019 are quite vague,”

ceives it as a very price

commented Trandafir.

sensitive market that

At the same time, as Cosmin Cojocaru,

became this way due to

managing director at Carat Romania, pointed

2008’s economic crisis

out, the demand for media exposure is signif-

and hasn’t changed

icantly higher than the supply, which means

since. “I could even add

prices will inevitably go up. “Everybody

that this tendency has

understands that prices have to increase;

increased in the last few

however each of us would like this to happen

years. The strategic part

to others, not to ourselves! From a business

of our job is not as im-

perspective, this is totally understandable:

portant as it should be;

everybody wants to go to heaven, but nobody

if you get a lower price

wants to die! Pressure on prices is huge. The

from a business partner,

average net TV price in Romania is now 35

the strategic approach

times cheaper than in markets like Germany,

loses importance. This

for example. Thirty-five times! Of course,

pressure on cost can be

we are behind them in many ways, but I

noticed at both agency

am pretty sure we are not 35 times behind.

and supplier level,”

With all the inevitable increases in 2019, the

added the Spoon Media

low level of media prices will remain one of

representative.

the biggest problems for all players in the

In her turn, Loredana

industry: fewer resources to invest in quality

Baracu sees it as a small,

content (for media owners), less visibility

but agile market that

and quality exposure (for media clients), less

is growing in size and

in TV we face a trade crisis, as demand is

capital to invest in talents, tools and services

complexity. She believes the industry is in

higher than supply. “We all have to learn

(for media agencies),” said the Carat repre-

an on-going transformation, looking for new

how to pass this situation and bring this

sentative.

competences, combining data and technol-

industry on a normal track. On the planning

ogy to create more sophisticated and efficient

side, the need to upgrade our capabilities is

tion is shared by Loredana Baracu, managing

communication solutions and leading new

higher than ever as developed countries from

director at Zenith Romania. She points to the

ways in creativity.

Europe, already ahead of us, are advancing

His opinion about the growing consump-

fact that digital media is growing faster, as a

“A commoditized market is one in which

rapidly with planning techniques and capa-

consequence of extended device penetration

clients display rampant skepticism, routin-

bilities. In terms of quality and efficiency,

and the constantly expanding internet con-

ized behaviors, minimal expectations and

there has been a regression. The media space

nection. “Digital & TV, making up 82 percent

a strong preference for swift and effortless

that we buy can’t be fully controlled and the

of adspend, will remain the main drivers of

transactions regardless of product differen-

impact of advertising has decreased year

market growth. Digital, in a highly acceler-

tiation. Commoditized clients choose mainly

after year due to the clutter and lower quality

ated rate, will reach a higher share, exceeding

based on price because they have become

of the advertising environment. We have

20 percent in 2019. Even though it remains

convinced that the options available are

to understand this, adapt and find better /

the main media used in Romania, TV is in a

equally acceptable and the minor differences

clever solutions in our planning. When I say

slight decline, losing share year by year. Audi-

among them are not worth investigating.

planning I mean both media and message,”

ences will continue to decrease and, after

They have lost the habit of asking: ‘Which of

said the Omnicom Media Group Romania

three years of double-digit price increases,

these suits me best?’” said Cosmin Cojocaru.

representative.

inflation will slow. By 2020, it will go under

“I have to say that this is mainly our fault, as

a 60 percent share of the total market,” pre-

media agencies. If we keep focusing so much

Balotescu, who thinks that after almost 30

dicted Baracu.

on price and continue to present ourselves as

years of media activity in Romania, it can

the cheapest GRPs providers, then this is how

be considered a mature industry. “We’ve

we will be perceived.”

learned a lot from our clients and from other

A VIBRANT INDUSTRY With all this in mind, how do the special-

Meanwhile, Daniel Ene believes that

Striking a more optimistic note is Dan

advanced media markets, so now we are able

www.business-review.eu Business Review | February 2019

38 MEDIA

ogy and sparkling minds, ways to continue to grow (but at a significant lower pace) might be discovered and the market can be further developed, making the crisis effect more manageable.” And while Cosmin Cojocaru and Dan Ene are sure a crisis will come, arguing that this is what history has taught us (Ene) and that there is a cycle (Cojocaru), Claudia Chirilescu isn’t yet sure if the answer is yes or no. “If this happens it will be for different reasons than the last one. I think that many advertisers on the market have lost their relevance in the eyes of consumers, and the crisis could happen because those old-type client businesses will suffer and so their media budget will decrease.” And while Ene thinks that local advertisers have understood how to deal with it, Cojocaru believes that we learned that we are more connected to the world than we thought we were. “We learned that conditions can change swiftly and dramatically, and that we need strong foundations to resist. We learned that a good long-term strategy takes the edge off short-term anxieties. We also learned that price is not everything. “Unfortunately, we seem to have forgotten some of these lessons.” “Products do not sell without advertis-

to give back to our partners valuable solu-

awarded in all major global and European fes-

tions and to continue to grow the Romanian

tivals, ahead of significantly bigger markets.

ing. The brand image and values built in

market,” he said.

Fortunately, growth in consumption does not

time are not worth losing. It’s dangerous and

necessarily mean the beginning of a reces-

not effective. Consumers quickly forget, or

THE NEXT ECONOMIC CRISIS – TO BE OR NOT TO BE?

sion. But we do notice a tenser economic en-

change their perceptions, which is dramatic

Hovering like a potential cloud over the

level. In Romania,

entire market is the economic crisis predicted

the political debate

by some parts of the industry, but one that

seems to distract the

nobody actually knows if it will arrive or not.

focus from strategic

BR canvassed the specialists, asking if they

investments and

believe the Romanian marcomm industry

initiatives, moving

has learned anything from the deep crisis of

mostly towards last

2008. According to Mihai Trandafir, the local

minute social mea-

media market faced one of the steepest de-

sures,” said the UM

clines in Europe during the first years of the

representative.

recession, along with Greece and Bulgaria.

vironment at global

Meanwhile, the

“We reached 50 percent in 2013, while in

Zenith representa-

other CEE countries volumes dropped a max-

tive believes that

imum of 25-35 percent compared to 2008.

leaving a cyclical

Unfortunately this major setback meant that

evolution, after five

we are still below the 2008 figures. Still, we

years of growth is expected to get closer to

for a brand. If a brand wishes to be part of a

found the strength and creativity to build

the inflection point. “Still, having so many

human’s life, it must be there, present, day by

our sophistication to an international level,

opportunities, diversification, data, technol-

day,” said Daniel Ene.

www.business-review.eu Business Review | February 2019

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children into the world of crypto through

Series and Private Equity Roundtables.

en, Anu Bhardwaj led the 2010-2013 US Depart-

Current investors are men and women from

ment of Commerce private equity and venture

the US, India, Sweden, Bulgaria, and Saudi

capital Certified Trade Missions to the Nordics

speakers on the subject of “Democratizing

Arabia.

and Middle East, representing over USD 175 bil-

Investing” at MindChain, one of Business

lion private-equity and venture-capital interests

Review’s flagship events of 2019 and the

actually get women at the poorest levels

resulting in over USD 750 million of capital raised

biggest events focused on blockchain and

and other marginalized communities access

in collaboration with the International Trade

artificial intelligence ever held in Romania, in

that they’ve never had before,” Anu said

Administration and the U.S. Embassies in seven

Cluj-Napoca, between February 21-22.

“With blockchain and crypto, we can

mobile gaming. Anu Bhardwaj will be one of the keynote

www.business-review.eu Business Review | February 2019

40 CITY

The virtual love business With Valentine’s Day (February 14) and its Romanian equivalent Dragobete (February 24) just around the corner, Business Review matched some data with the largest local dating website, www.sentimente.ro. Ready to find online love?

By Oana Vasiliu offline, Tinder came with a new and simple idea. This increased its appeal, especially to millennials looking for dating opportunities: it was promoted at sorority and fraternity meetings to get more college students on board. With these users signed up, the app became more popular by word of mouth.

SAFETY ISSUES To find the ideal partner, users of dating apps are often prepared to reveal their name, occupation, place of work, where they like to hang out, and lots more besides. A global study from Kaspersky Lab (August 2017) found that one in three people have tried online dating. Moreover, online love-seekers share informaHow about finding happiness online?

tion with others easily, with a quarter (25%) admitting they reveal their full name publicly on their dating profile. One in ten has shared

erified profiles and a safe interaction

speak at least one foreign language, English

their home address, and the same number

environment seem to be the edge

being the most popular. And what’s more, in

has taken the risk of sharing naked photos of

that Romanian online dating website

a world where offline interactions seem to

themselves. The study notes that many on the online

www.sentimente.ro offers over its interna-

have fallen from favor, users typically meet

tional rivals Tinder, Badoo, and OKCupid.

IRL (in real life) in maximum of two weeks

dating scene are young, as the 33.8 average

And the site continues to develop: last year

from their first online conversation.

age suggests, with 43 percent of 25-34 year

brought the launch of WallY, a new version of

Is this a profitable business? With 37,000

olds using online dating services. This tech-

the platform, based on Artificial Intelligence.

daily online users and nearly 20,000 new

savvy age group is likely embracing online

Using machine learning, WallY generates

accounts monthly, the Romanian business,

dating as a way to meet interesting people

a personalized dashboard for every user.

founded by Dani and Flori Dragomir, is now

while balancing busy professional lives.

Based on the user’s profile and actions on

worth over EUR 700,000.

the website, such as people interacted with,

By comparison, statistics say the 50

In terms of security, the study found that vulnerable individuals, such as the unem-

likes given, profiles viewed, and so on, WallY

million-user online dating platform Tinder,

ployed, and single women tend to be most

becomes your personal virtual Cupid, giving

which is available to use in close to 200 coun-

concerned about meeting ‘people with bad

those looking for a love the best chance to

tries, gets 1.6 billion swipes per day, with over

intentions’ through their online dating activi-

start a conversation based on real-time data.

20 billion matches. Around 9 pm is appar-

ties. Those aged 45-54 are anxious about not

Founded in 2001, Sentimente recently

ently the peak swiping time on Tinder. The

being able to delete their information from

reached 1.8 million members, with over 6.5

average user logs onto the app 11 times per

online dating sites, while the over-65s are

million messages per month. The dating web-

day and the optimal matching time is earlier

more worried about fraud. Overall though,

site is growing in popularity in the UK, Italy,

in the week, on Mondays and Tuesdays.

some of the main concerns about dating on-

Germany, Spain, the US and Canada. Impor-

While Romania’s dating website has

line involve data protection, with 61 percent

tantly, it has a balanced sex ratio: 56 percent

thrived on organic growth and testimonials

of users worried about their data being leaked

men and 44 percent women. Most users

from couples who got married after meeting

from the dating service/app itself.

www.business-review.eu Business Review | February 2019

CITY 41

Quiz: 36 questions that lead to love When pondering whether your partner is The One, you could use a study by the psychologist Arthur Aron, who famously managed to make two strangers fall in love in his laboratory. The Experimental Generation of Interpersonal Closeness: A Procedure and Some Preliminary Findings can be found free of charge in PDF format. The 36 questions are divided into three sets, as follows, and are meant to help you get close to your partner:

SET I

truth about yourself, your life, the future

friend with your partner, please share

1. Given the choice of anyone in the

or anything else, what would you want

what would be important for him or

world, whom would you want as a din-

to know?

her to know.

ner guest?

14. Is there something that you’ve

28. Tell your partner what you like

2. Would you like to be famous? In

dreamed of doing for a long time? Why

about them; be very honest this time,

what way?

haven’t you done it?

saying things that you might not say to

3. Before making a telephone call, do

15. What is the greatest accomplishment

someone you’ve just met.

you ever rehearse what you are going

of your life?

29. Share with your partner an embar-

to say? Why?

16. What do you value most in a friend-

rassing moment in your life.

4. What would constitute a “perfect”

ship?

30. When did you last cry in front of

day for you?

17. What is your most treasured memory?

another person? By yourself?

5. When did you last sing to yourself?

18. What is your most terrible memory?

31. Tell your partner something that

To someone else?

19. If you knew that in one year you

you like about them already.

6. If you were able to live to the age of

would die suddenly, would you change

32. What, if anything, is too serious to

90 and retain either the mind or body

anything about the way you are now

be joked about?

of a 30-year-old for the last 60 years of

living? Why?

33. If you were to die this evening with

your life, which would you want?

20. What does friendship mean to you?

no opportunity to communicate with

7. Do you have a secret hunch about

21. What roles do love and affection play

anyone, what would you most regret

how you will die?

in your life?

not having told someone? Why haven’t

8. Name three things you and your

22. Alternate sharing something you

you told them yet?

partner appear to have in common.

consider a positive characteristic of your

34. Your house, containing everything

9. For what in your life do you feel

partner. Share a total of five items.

you own, catches fire. After saving

most grateful?

23. How close and warm is your family?

your loved ones and pets, you have

10. If you could change anything about

Do you feel your childhood was happier

time to safely make a final dash to save

the way you were raised, what would

than most other people’s?

any one item. What would it be? Why?

it be?

24. How do you feel about your relation-

35. Of all the people in your family,

11. Take four minutes and tell your

ship with your mother?

whose death would you find most disturbing? Why?

partner your life story in as much detail as possible.

SET III

36. Share a personal problem and ask

12. If you could wake up tomorrow

25. Make three true “we” statements

your partner’s advice on how he or she

having gained any one quality or abil-

each. For instance, “We are both in this

might handle it. Also, ask your partner

ity, what would it be?

room feeling...”

to reflect back to you how you seem to

26. Complete this sentence: “I wish I had

be feeling about the problem you have

SET II

someone with whom I could share...”

chosen.

13. If a crystal ball could tell you the

27. If you were going to become a close

www.business-review.eu Business Review | February 2019

42 MUSIC

Musicians mike up: top international bands head for Romania Local gig-goers have a smorgasbord of shows this year, with big names like Bon Jovi, Metallica, Slayer, Ed Sheeran, Godsmack, Lenny Kravitz, Florence and the Machine, 30 Seconds to Mars, John McLaughlin all taking to the Romanian stage in 2019. But when and where? By Oana Vasiliu

DAVID DUCHOVNY SALA RADIO BUCHAREST, 10 FEBRUARY

ED SHEERAN NATIONAL ARENA BUCHAREST, 3 JULY

BON JOVI CONSTITUTIEI SQUARE BUCHAREST, 21 JULY

Best known for the TV series Californication

Needing no introduction, the 27-year-old

Seven years after their first show in Romania,

and The X Files, Duchovny will bring his

British pop singer is one of the world’s best-

American rockers Bon Jovi return to promote

band to town to promote his second album,

selling artists. His world tour Divide will hit

their latest album, This House Is Not For Sale.

as part of the European tour Every Third

town this summer.

The disc charts the band’s over three-decade

Thought.

history, announcing the starting point for a new musical era for Jon Bon Jovi and his band mates.

TOM ODELL ARENELE ROMANE BUCHAREST, 16 FEBRUARY

SLAYER ARENELE ROMANE BUCHAREST, 10 JULY Iconic thrash metal band Slayer are currently on their official goodbye tour. Local fans of

The British contemporary singer and pianist

the American outfit will have the chance to

will return to Romania this winter with his

see them live for the last time in July.

THE CURE & GOD IS AN ASTRONAUT CONSTITUTIEI SQUARE BUCHAREST, 22 JULY The Cure come to Romania for the first time,

latest album and world tour, Jubilee Road.

with the English rock group playing under

His last local performances were very well

the Rock the City Festival banner.

received.

FLORENCE + THE MACHINE, 30 SECONDS TO MARS AND BRING ME THE HORIZONELECTRIC CASTLE BONTIDA, 17-21 JULY LENNY KRAVITZ SALA POLIVALENTA CLUJ-NAPOCA, 6 MAY

Probably the most eagerly awaited music fes-

METALLICA NATIONAL ARENA BUCHAREST, 14 AUGUST

tival this year, after one of the coolest teasing

Rockers Metallica will bring to the local stage

Raise Vibration, Kravitz’s latest album, a mix

campaigns presenting the headliners, Electric

Worldwired, their latest concept tour. Good

of rock ‘n’ roll, funk, blues and soul, will get

Castle is preparing to wow its audience with a

luck finding tickets, as the event is already

an airing as the US rocker returns to Romania.

selection of big names.

sold out.

www.business-review.eu Business Review | February 2019

ROMANIAN CINEMA 43

Set for the silver screen: Romanian movies ready to battle the box office It has become something of a tradition that forthcoming Romanian movies are first launched at two of the top European film competitions: the Berlinale (usually mid-February) and Cannes (early May). BR grabs the popcorn and takes a look at what festival fare is coming, plus some notable recent productions. By Oana Vasiliu For this edition of Berlinale, only Marius Olteanu’s Monsters was selected for the Forum competition. The movie follows married couple Dana and Arthur over 24 hours in Bucharest and explores the clash between social values and individual choice via bisexuality, the rejection of motherhood, and challenges to traditional concepts of love.

ALREADY OUT The Golden Bear winner of the Berlinale 2018 Touch Me Not, directed by Adina Pintilie will be in cinemas this spring, after having graced numerous national and international festivals. The unorthodox story has already provoked a strong backlash. Touch Me Not is an experiment between fiction and documentary, and addresses the prejudices of people related to intimacy. Touch me not, directed by Adina Pintilie, highly acclaimed by both critics and public

The distance between Me and Me, directed by Mona Nicoara, is one of the long awaited documentaries of the year, although

FORTHCOMING

duced. The movie tells the story of another

it has been screened at film festivals. Focus-

Industry insiders are all talking about two of

policeman, verging on retirement, who must

ing on Romanian poet Nina Cassian, it has

the most eagerly awaited Romanian mov-

locate a witness to testify in a human traffick-

been described as an intensely personal film

ies of 2019, directed by two major names:

ing trial.

about history, art, the individual and love. It

Cristi Puiu’s The Manor House (La conac),

Marian Crisan’s Berliner will also premiere

tells the history of Communism as seen by

and Corneliu Porumboiu’s The Passenger.

this year. Taking strong cues from real life, it

Cassian, whose refuge in the underground

French-language The Manor House is set in

centers on Mocanu, a high-profile politician

Communist Party in the 1930s put her on

1900, an adaptation of Vladimir Soloviov’s

whose past deeds put him in danger of being

a collision course with Nicolae Ceaușescu,

story of the Antichrist. Porumboiu’s The Pas-

convicted for corruption, jeopardizing his bid

sending her into a late, unwanted New York

senger follows policeman Cristi (local actor

to become an MEP.

exile in 1985.

Vlad Ivanov), who arrives on La Gomera,

Tudor Giurgiu’s Parking, which will

Professor Ioan-Matei Agapi, an 80-year-

one of the Canary Islands, to learn El Silbo, a

premiere at TIFF, tells the story of Adrian, a

old photographer and cameraman from Iași,

whistling form of communication. This could

young poet who leaves Romania for Spain,

has a unique collection of 16mm films and

possibly lead to the release of a controversial

intending to change his life, earn money and

photographs documenting almost 50 years

businessman imprisoned in a Romanian jail.

learn Spanish. Working at a car dealership, he

of the city’s history. His filmmaker daughter,

finds a flamenco / jazz CD and poster, and is

Nora, draws on those archives for Timebox,

nian New Wave, Catalin Mitulescu’s fourth

enchanted by the music and photo of the bass

which has already notched up several inter-

feature will be Heidi, which he self-pro-

guitarist.

national awards.

Another prominent member of the Roma-

www.business-review.eu Business Review | February 2019

44 EXPAT EYE

Going local: when is an expat no longer an expat? After a long break in the UK, BR’s resident expat tries to readjust to life in Bucharest, and encounters some surprisingly impressive services – the public ones. By Debbie Stowe services have really impressed me of late – the public ones (yes, really). A couple of months ago, when we were leaving home one chilly afternoon, we found a note on the car windscreen that said there was a cat under the car or in the engine. Closer investigation under the bonnet revealed a tiny pair of eyes peeping up, accompanied by mewing. My partner’s attempt to rescue the kitten earned him a scratch to the hand, so we called 112, which put us through to the fire department who said they’d send someone. This presumably being a very low

priority, we got ready for a long wait. Within three minutes, a fire engine, siren

hen is an expat not an expat? One

well you speak the language or how inte-

wailing, came screeching around the corner.

unhappy answer is when they’re

grated you are, a foreigner still enjoys the

That’s a coincidence, we thought; it can’t be

an immigrant. As a Brit – or West-

advantages of perception, that Romanian trait

for us. But it pulled up, and out piled five

erner – in Romania, there’s an uncomfortable

of wanting to make a Western visitor feel at

firemen who set about trying to free the kit-

disparity in how welcome we are made here,

home and take away a good impression of the

ten! They eventually succeeded, and when

and how our equivalents doing the reverse

country.

we tried to give them a thank you/spaga they

journey – Debora Stoescu, say – would be treated in our home countries.

I was pondering this life cycle of an expat after a recent readjustment following a

wouldn’t even take it! Well done, chaps! (The end of the story isn’t quite as good, as

lengthy visit to the UK. After (gulp) 15 years

the kitten ran straight into the engine of the

the horrible process of making Europeans

here, I like to think I’m pretty integrated –

car behind, and the firemen asked us to put

who have made the UK their home, laid down

that I’m not one of your newbies who’d get

the note on that car’s windscreen, with the

roots, contributed to society, paid taxes and

ripped off by a taxi driver or be shocked when

addition of “Don’t call the fire brigade”!)

so on apply for settled status, and disenfran-

service is not with a smile.

This is worse since the Brexit vote, and

chising them.

But after a six-week Christmas holiday, I

Not long after, I was attempting to buy a ten-journey metro pass. This might not sound

found I had slipped back into UK mode. Why

too difficult, but with one small child in my

to apply the world over, wherever richer/

is that driver not stopping to let me cross

arms and another tethered to me with some

whiter/Westerner people going to less devel-

when they have a red light anyway, I found

reins, I was struggling and flustered.

oped countries are “expats” and those going

myself thinking upon my return to Bucharest?

the other way are “immigrants”.

Why isn’t that shop assistant being friendly

the train down on the platform, when the

and polite to me?

ticket salesperson approached, proffering a

But it was also the case before, and seems

Some Brits I know who’ve been here for years say they no longer consider themselves

I suppose even after 15 years, you can take

The task completed, we were waiting for

ten lei note that I had left by mistake. I hadn’t

expats. It’s a much more attractive attitude

the girl out of the UK, but you can’t take the

realized, and she could easily have pocketed

than can be seen from those who swagger

UK entirely out of the girl.

it, or waited to see if I went back for it or not.

say in London, just because they happened to

SUPER SERVICES

part of the expat experience, but they’re not

be born in a more developed country.

The service culture may take some getting

the full story.

Taxi drivers who rip you off may be a real

around town, giving it the big “I am” as we

But no matter how much you adapt, how

used to again, but some other Romanian

www.business-review.eu Business Review | February 2019

Glass DIRECTOR: M. Night Shyamalan STARRING: Sarah Paulson, Bruce Willis, Anya Taylor-Joy, James McAvoy, Samuel L. Jackson ON AT: Glendale Studio, Movieplex Cinema, Grand Cinema & More, Grand VIP Studios, Happy Cinema, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake, T IMAX

n 2017’s Split, Scottish actor James McAvoy memorably played a split-personality

FILM 45

FILM REVIEW

By Debbie Stowe

ments in erratic director M. Night Shyamalan’s Glass. The “Glass” of the title is the nickname of super-villain Elijah Price. He’s played by Samuel L. Jackson, whose trademarks are energetic performances and iconic thunderous diatribes – so that should be in the film’s favor, right? But no, Jackson – his character detained in a psychiatric facility and kept heavily sedated – spends most of the movie sitting, catatonic, in a wheelchair, totally

most of the running time the characters do

wasted.

very little in the way of superhero stuff, so

David Dunn (played by Jackson’s Pulp Fic-

there are few spectacular scenes – which is

serial killer, whose various incarnations

tion co-star Bruce Willis), the hero, gets more

surely the point of making films about super-

included a nine-year-old boy, a prim matron

to do, but with the three protagonists mostly

heroes? A dramatic final faceoff that is trailed

and a bloodthirsty beast. It was a virtuoso

kept separate, there’s little dynamism and the

never comes about, and the big confrontation

performance, and in a more serious film than

story feels inert.

ends with a whimper.

a superhero/horror trilogy installment might

It’s also not clear until well into this two

A final development, though interesting

hour-plus picture what type of film it is trying

and serving to put the rest of the story in

to be. It’s not a serial killer-thriller like Split

context, is too weak to be called a twist and

trilogy, doing exactly the same thing, and just

– elements of that are raised and dealt with

too late to stop the preceding couple of hours

as well – only now less impressively because

early on, so there is no “will they or won’t

from dragging.

we already saw nearly two hours of the same

they escape?” tension to sustain interest.

have earned him an Oscar nod. McAvoy is back in the final part of the

shtick last time. It’s one of several disappoint-

Nominally it is a superhero movie, but for

Donbass

FILM REVIEW

By Debbie Stowe

what appear to be film extras exchanging

DIRECTOR: Sergei Loznitsa STARRING: Valeriu Andriuta, Natalya Buzko, Evgeny Chistyakov, Georgiy Deliev ON AT: Grand Cinema & More, Elvire Popesco, Cinema Muzeul Țăranului

banter as they get their make-up done. But it turns out it’s not a conventional movie, but a “fake news” report they’re preparing to shoot. The scene is as bogus as the performance we witness minutes later, when a bloated lo-

ans of Romanian cinema will be

cal official denounces an employee of a drab

familiar with the social realism em-

hospital (again, so recognizable to Romanian

ployed by Ukrainian director Sergei

audiences I felt he should have been played

Loznitsa, in this odd, unsettling and brutal

by Vlad Ivanov), before being revealed

portrait of the recent civil war in his home

(unsurprisingly) to be mired in corruption

country. Not least because the mix of offbeat

himself.

humor, baffling bureaucracy, cynical decep-

It’s not easy viewing – the bleak humor

tion and state cruelty serves as well to depict

can do little to offset the horror – but Donbass

Romania’s Communist years as the conflict

is an apt vehicle to convey the viciousness,

near the Caucasus.

misinformation, absurdity and razor-edge

A series of vignettes, Donbass opens with

tedium of conflict.

Tonally disjointed, Glass is a letdown after the suspenseful Split.

www.business-review.eu Business Review | February 2019

46 CITY

Cultural calendar Together, to be exhibition Halucinarium Gallery, 4 February

Mezanin Market Palatul Universul, 9-10 / 23-24 February

By Oana Vasiliu

Safina has become a regular at the world’s major opera houses. He now returns to Romania’s stages.

Dichisar de martie spring fair Impact Hub Bucharest, 23-24 February

ate Hecher & Markus Keim (AT), Catalin Burcea (RO), and Ivelina Ivanova (BG) in an exhibition where the artists representing their countries underline the

The exhibition presents stylisti-

Romanian designers and local

characteristics of each nation:

urban culture will be showcased.

Austria with the perseverance of analyzing reality in a silent but

cally different forms of expression (social, critical and satirical)

Erotic Design Fair Control Club, 9-10 February

active way, showing the process The biggest handmade and

as well as the result; Romania

social message. Works showcase

designers’ fair in Bucharest,

contemplating the past to un-

various graphics techniques,

Dichisar is ideal for shoppers

derstand how to build the future

from object installations with

searching for the perfect marti-

in light of different ideological

graphic inserts, to aesthetic

sor, the Romanian symbol of the

moments; Bulgaria with the mo-

visual exercises and video anima-

arrival of spring.

lecular social revolution aimed at

to convey, directly or indirectly, a

each inhabitant and transforming

tion. Dare to spice up the intimacy

Disney on Ice - Reach for the Stars Romexpo, 6-10 February

of your bedroom with an en-

For the first time in Romania,

gathering of contemporary local

Tiny Fingers concert 18 February, Control Club

perceptions of how to construct new ways of cooperation.

vogue Romanian creation for adults only! The design fair is a

David Le Breton book launch 21 February, Cinema Taranului Roman

designers showcasing their most indecent creations, just in time for February’s love celebrations, Valentine’s Day and Dragobete, or just a day-to-day fetish. Described as “a brilliant dose of

Alessandro Safina concert Sala Polivalenta Cluj-Napoca, 14 February and Sala Palatului Bucharest, 17 February

post-rock and electronic sounds with grooves the size of the Grand Canyon”, Tiny Fingers are famed for their futuristic shows, a crowd-pleasing grand sonic and visual experience. With a mix of post-rock, psychedelic rock, electronic music and jazz, the band will be in Romania for the first

Mickey Mouse and his friends

time. Tickets available at www.

Well-known French anthropolo-

will bring to the Romanian ice

eventbook.ro for RON 35.

gist David Le Breton returns to

popular moments from Frozen,

Celebrate love at a live concert in

The Little Mermaid, Rapunzel

the company of this handsome

and Beauty and the Beast, along-

Italian, and his soulful “pop-

side favorite Disney characters. Suitable for children of all ages.

Romania to present to the public his latest book, The Escape from

opera” concept. Since the release

How We Look at Things exhibition Until Feb 7, Atelier 030202

of his debut album Insieme A Te,

Curator Razvan Ion presents Be-

French with translation available.

Yourself, A Contemporary Temptation. The event will be in