BR/04/2021

DEVELOPERS AND TENANTS JOIN FORCES TO EMPOWER WORKFORCE

April, 2021 / Volume 25, Issue 3

www.business-review.eu

8

ROMANIA’S STAR SECTORS

13

IN THE AGE OF REMOTE WORK, LOCATION STILL MATTERS FOR STARTUPS

28

CROWDFUNDING CAMPAIGNS HELPING OUT SOCIAL ENTREPRENEURS

36

EVERGENT INVESTMENTS SETS TARGETS ON REAL ESTATE, AGRIBUSINESS AND CLEAN RESOURCES

www.business-review.eu Business Review | April 2021

• Editorial •

EDITORIAL 3 REAL ESTATE

Anda Sebesi • Editor-in-Chief • 6 Residential market expected to drive Romania’s FDI growth in coming years

COVER STORY

Stars sectors shining in 2021

F

10 EVERGENT Investments sets targets on real estate, agribusiness and clean resources

MAIN STORY

rom an economic perspective, Romania performed well last year, even under the pressure of the pandemic. Foreign investments halved over the first ten months of the year com-

pared to the same period in 2019, but this was offset by a growth

13 Romania’s

in governmental spending and investment. With the strongest in-

star sectors

crease in Gross Domestic Product in the European Union in the last quarter of 2020, of 5.3 percent, and a total decline of 3.9 percent over the whole year, Romania needs better management of all its

ENTREPRENEURSHIP

economic instruments in order to achieve a V-shaped recovery.

According to the Business Sentiment Index survey conducted in September by the Foreign Investors Council (FIC), many re-

28 In the age of remote work,

spondents expressed concern regarding the worsening business

location still matters for startups

environment, the Romanian market’s low attractiveness, and the

30 Crypto boom may fuel new

deterioration of their own initial investment plans.

investments in startups

Nevertheless, we’ve decided to dedicate this month’s top story to Romania’s star sectors, highlighting some of the most dynamic and resilient players of the pandemic year. From logistics to the

CITY

chemical industry, IT & telecommunication, automotive, and retail, these sectors will all need to face the challenges of a local business environment that will be strongly influenced by the persistence of the coronavirus pandemic. Last but not least, this month’s cover story is dedicated to EVERGENT Investments, the former SIF Moldova, which changed its name in March and aligned with the new European legislative framework on alternative investment funds.

36 Crowdfunding campaigns helping out social entrepreneurs

38 What’s new in town?

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

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | April 2021

4 NEWS

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

Submissions may be edited fo­­­r length and clarity.

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

Brio.ro uses AI and launches mathematics training module

By Mihai Cristea knowledge and increase student performance. For example, if after a standardised test the report highlights gaps in certain types of knowledge, the students can then do fur-

Florin Godean the Country Manager of Adecco Romania, is the new President of the SwitzerlandRomania Chamber of Commerce. Godean took over the Country Manager role at Adecco Romania in 2011 and under his leadership, the company became a market leader and has kept its position for 8 consecutive years.

He is a graduate of the West University of Timisoara, with a degree in economics. “The Swiss business environment in Romania and the community of companies around CCE-R are recognised for solidarity and proactivity,” Godean said.

ther training only on that type of problem, until their results improve. In addition, students can also choose the training tests which are aligned with what is being taught in class

Currently, Brio.ro offers tests in mathematics, Romanian language and literacy

page 5

helps them learn the subject much more easily, throughout

Brio.ro, the first and only stan-

all users, and more will be devel-

the year. Hence, besides being

dardised digital testing plat-

oped later for students in grades

an evaluation provider, Brio is

form in Romania, will upgrade

V-VIII and high school.

also becoming a learning pro-

The training module was de-

vider,” says professor Dragos

the platform by launching a

veloped following a EUR 30,000

Iliescu, CEO, Chief Scientist,

mathematics training module

funding obtained in the Innova-

and founder of Brio. Currently,

which is based on program-

tors for Children accelerator, a

Brio.ro offers tests in mathe-

matic item generation. Upon

programme developed by Impact

matics and Romanian language

launch, the tests will be avail-

Hub Bucharest in partnership

which fully cover the school

able in a beta version for the

with Impact Hub Basel and Fon-

curriculum, as well as literacy

first 200 students in grades I-IV

dation Botnar.

tests. In the coming period,

the types of tests available on

who register on the platform,

Alexandru Oprea has taken over the role of Country Manager at REHAU Romania. Oprea started his career at REHAU Romania in 2004. In 2010 he was appointed Sales Manager for Bucharest and Bacau within the Building Solutions division, became Head of Sales of the entire Building Solutions division in Romania in 2011, and in 2015 he took over the same department at REHAU Bulgaria. Since 2018, he has been a member of the REHAU Romania Administrative Board, and in 2020 he served as Deputy Country Manager.

at any particular time, which

“By launching this new test

the platform will add subjects

and in another month or so, the

module, we provide a much more

like history, biology, chemistry,

tests will be made available to

complex tool to help improve

physics, and digital literacy.

Uber arrives in Galati

By Mihai Cristea On April 1, Uber became avail-

in 2015, in Bucharest, and then

able in Galati, making it the sec-

went through a rapid expansion

ond city in the Moldova region

to Cluj, Timisoara, Brasov, and

where the service is operating,

Iasi, having added Constanta last

after Iasi was added in 2019, and

summer and Craiova just last

the eighth Uber city in Romania.

month. As in all other Romanian

Uber first launched in Romania

cities, Uber drivers in Galati are

Uber will bring its most popular service in Galati UberX

www.business-review.eu Business Review | April 2021

NEWS 5

Sameday expands easybox service

By Mihai Cristea Sameday, one of the leaders

Andrei Jerca is the new Managing Director of Element Industrial. A professional with 14 years of experience in the real estate industry, Jerca has worked for companies such as Europolis, CA IMMO (Asset Manager), P3 (Head of Asset Management Romania) or CBRE (Head of Industrial Services), having been involved both in the management of a portfolio of 300,000 sqm of logistics space as well as in the development of logistics and industrial projects amounting to 200,000 sqm.

of the local courier market, announced the expansion of its easybox service upon the inauguration of the 1000th locker, at 5 Lanariei Street in Bucharest. The company aims to double the existing easybox network by the first quarter of 2022. Currently the operator of the largest network of delivery machines in Romania, Sameday launched its first locker in Bucharest in September 2018, and has constantly expanded this service ever since, covering all counties in the country,

Sameday launched its first locker in Bucharest in September 2018

including both major cities such as Bucharest, Cluj, Con-

For the location of easybox lock-

as they are looking for effi-

stanta, Iasi, Timisoara as well

ers, Sameday has into partner-

ciency, predictability, conve-

as smaller localities. There are

ships with shopping centers,

nience, and flexibility. What we

now about 250 lockers in the

gas stations, residential centers,

have managed to build so far

capital city, over 60 in Ilfov

but also with individuals, own-

through the national network

County, and almost 700 across

ers’ associations or local public

of easybox lockers is the result

the rest of the country. Except

authorities.

of a continuous investment

for the Bucharest-Ilfov region,

“The launch of our thou-

in technology and a constant

the counties in the country

sandth locker is an important

effort to improve and integrate

with the highest number of

milestone in the Sameday strat-

the feedback received from our

easyboxes are Cluj (85), Timis

egy. It allows us to be closer to a

partners, as well as from end

(71), Iasi and Constanta (58),

growing number of consumers

users,” said Lucian Baltaru, the

and Brasov (48).

and to better serve their needs,

CEO of Sameday.

Tanja Blatnik has been appointed as General Manager for Romania by the Euroins Insurance Group.

Blatnik is joining Euroins Romania after over 20 years of experience in the insurance industry, during which she has led important operational teams and projects across Central Europe. Before joining Euroins Romania, Tanja Blatnik was the executive director for operations at Generali Insurance Slovenia and at Adriatic Slovenica Insurance Company.

fully licensed to safely drive passengers to their destinations.

Uber will bring its most popular service to Galati – UberX. “People are very interested in alternative means of transportation all over the country, and Galati is no exception.

That is why we want to become a reliable partner for local authorities and to provide people in Galati with affordable and safe transportation alternatives,” said Ana Maria Borlovan, Country Operations Manager at Uber Romania.

Cristian Pana is the new Managing Director of Ubisoft Romania. Having been with the company for the past 18 years, Pana started out as a Video Game Tester. In 2015, he joined Massive Entertainment, Ubisoft’s Studio based in Malmo, Sweden, as Producer, and later became Executive Director of the Production Department.

www.business-review.eu Business Review | April 2021

6 REAL ESTATE

Residential market expected to drive Romania’s FDI growth in coming years The residential sector in Romania performed above expectations in terms of total sales in 2020, with an increase of 19 percent compared to 2019, according to data from the National Cadastre Agency. The result was better than even the most optimistic estimations, considering the fact that 2020 had two months of total lockdown.

By Aurel Constantin consultant SVN Romania. Significant developments are also being recorded in other regional residential markets in Romania, such as Constanta, Brasov or Cluj-Napoca.

Of all the residential units currently being developed in and around Bucharest, approximately 18,000-20,000 could be delivered this year. The number will depend on the degree to which developers will be able to maintain their current pace of construction and the ease with which they will complete delivery papers. This volume of deliveries would be similar to the one registered in 2020, when a new record was established in Bucharest and its surrounding areas, despite the COVID-19 pandemic. 20,733 residential units were delivered in the region last year, up 40 percent compared to 2019, according to data from the National Institute of Statistics.

“The overall difficult context we are living through has had a limited impact on the local residential market, which withstood the macroeconomic shock caused by the COVID-19 pandemic. Significant increases in the

E

The premium and luxury segment is due to register its best results in 2021, with around 700 units expected for delivery

number of closed transactions were recorded in all regional residential markets in Romania, with new delivery records in Bucharest and

urostat statistics show that 45.8

in Bucharest, with a total investment value of

the best level of accessibility for purchasing a

percent of the Romanian population

EUR 1 billion.

new home in recent history. Today we are in

The capital city and its surroundings are

a far better position compared to March 2020,

this context, both local and international

among the most sought-after regions in the

when the health crisis started. Therefore, 2021

developers are expanding their investments

country, with a total population of over 3

has the potential to bring more great results,”

in new and modern residential units. Accord-

million people. Over 24,000 new residential

said Andrei Sarbu, the CEO of SVN Romania.

ing to data collected by the Bucharest Real

units are under construction in this area, ac-

Estate Club, over 50 projects were delivered

cording to the “Romania Residential Market

2021 TO BRING SIGNIFICANT CHANGES

in 2020 or are under development until 2023

Genome 2021” report released by real estate

The supply of new housing in 2021 will see

lives in overcrowded homes. Given

www.business-review.eu April2016 2021 Business Review | May

COVER REALSTORY ESTATE14 7

insignificant changes from 2020 figures. The

In January 2019, the same apartment

tors,” said Dan Flesariu, Head of Real Estate

largest share of the units due to be delivered

would have amounted to 107 average wages

Transactions, Strategy and Transactions at

this year in Bucharest and its surroundings

(or a period of 8.9 years). A year before that,

EY Romania. One of these factors is that more

– 55.2 percent – will target the mass market

the price of the home would have repre-

than 80 percent of the housing stock is about

segment, with developments in large urban

sented 117.6 average wages (9.8 years). During

40-50 years old or older, which means it is

neighbourhoods or on the outskirts of the

the market peak of 2008, you’d have needed

obsolete, physically depreciated, and energy-

city and with prices that reach EUR 1,300 per

no fewer than 393.6 average wages or the

inefficient. Apart from the fact that half of

net square metre.

equivalent of almost 33 years of work. We

Romanians are living in overcrowded homes,

should note that the average wage in Bucha-

there are also high rates of domestic migra-

which wages have continued to increase in

rest is approximately one third above the

tion and commuting. According to the World

recent years. At the same time, the demand

national level.

Bank, a net total of 2 million people migrated

Approximately 8,300 new residential units due to be delivered in 2021 will target the middle market segment, a figure similar to the one recorded in 2020.

Prices for such units usually start around EUR 1,300 and go up to EUR 2,000 per net square metre.

The middle market segment will thus continue to attract a significant share of deliveries, in a context in

for well-located homes, either at the heart of large neighbourhoods or in the semi-

from rural to urban areas in the first decade of the current century, and the trend is expected

central and northern areas of Bucharest, has

A DRIVER OF FOREIGN DIRECT INVESTMENTS

continued to grow. In general, these units

The residential sector was the unexpected

have bigger-than-average surfaces and high-

winner of the pandemic, as opposed to the

million Romanians working abroad intend to

quality finishes.

industrial sector, which had been expected to

gradually return to Romania in the foresee-

The premium and luxury segment is due

to continue in the second decade.

Furthermore, almost 30 percent of the 4

do well from the very beginning. The overall

able future, and they are seeking homes at

to register its best results in 2021, with around

feeling about the residential sector was

European standards. “We expect that the

700 units expected for delivery. Usually,

rather bleak during the lockdown of spring

home rental market will mature and that

premium and luxury units are located in the

2020, but it recovered quickly and

northern part of the city and have trading

sharply during Q2-Q4 2020.

prices that start from EUR 2,000 per net

Transaction volumes

square metre. Overall, the high-end market in

in 2020 matched the

Bucharest has a yearly value of EUR 250 mil-

2019 levels, while

lion, according to SVN Romania estimates.

overall prices

professional investors in dwelling stock will step in,” Dan Flesariu added.

The Bucharest Real Estate Club notes that while

The accessibility of purchasing a new

grew by an esti-

one-bedroom

home in Bucharest reached the best level in

mated 5 percent.

apartments re-

modern history at the beginning of 2021. To-

“Demand

day it is for times more accessible to purchase

for residential

a new home in Bucharest than it was in 2008,

spaces is on the

according to the profile index calculated by

rise and, as long

SVN Romania.

as prices maintain

In January 2021, you needed 99.6 national

a reasonable and

main the most popular in the middle segment development mix, thanks to their low prices,

average net wages to purchase a new one-

healthy margin over

bedroom apartment in Bucharest (50 sqm)

inflation, this trend should

or the equivalent of a period of 8.3 years of

be sustainable. Despite the

work, compared to 102 average net wages

fact that Romania has the highest home

(8.5 years) that would have been required in

ownership rate in the EU (around 96 percent),

not been affected by the pandemic and who

March 2020, when the COVID-19 pandemic

the demand for new homes is expected to

are willing to pay as much as EUR 4,000-

broke out in Romania.

keep growing based on several critical fac-

5,000 per square metre of exclusive property.

the luxury segment continues its development trend. There are increasingly sophisticated clients whose incomes have

www.business-review.eu Business Review | April 2021

8 INTERVIEW

Developers and tenants join forces to empower workforce With the pandemic having changed the way we live and work, real estate developers and tenants need to find ways to provide a safe working environment for employees.

By Anda Sebesi context. Each project has its own advantages: for example, Business Garden Bucharest has 30 percent of its space dedicated to the garden, where the employees can work, play chess or ping-pong, drink their morning coffee or just take a break outdoors.

On the other hand, Timpuri Noi Square has a large recreational plaza area, together with a multimodal football court where employees can have fun and enjoy team sports in order to reconnect with each other when they return to the office.

Antoniu Panait, Vastint

How has the pandemic changed the way office buildings are perceived by tenants and what have developers done – in terms of investments – to support their tenants’ safe return to the office?

Could the benefits mentioned above be part of your tenants’ employer branding strategies?

enced burnout, while a third stated they did

Project details and amenities can be lever-

not feel connected to their colleagues.

aged by employers in corporate branding

In our case, the property management

strategies and have a direct impact on HR

teams of both Timpuri Noi Square and Busi-

recruitment and retention processes. Apart

ness Garden Bucharest have invested a great

from that, there are also several other aspects

Since the start of the pandemic, companies

deal of time and effort to ensure that the

to mention, including the office layout and

have had to react quickly and cautiously

buildings are ready to safely welcome our ten-

desk occupancy ratio. Location continues to

while remaining flexible in order to adapt to

ants’ employees back to the office at any time,

be one of the most important decision drivers

the constantly-changing environment. The

while maintaining operational budgets under

as recent research has re-confirmed that for

first step was to shift either completely to

control. Timpuri Noi Square was the first

over 64 percent of employees, office acces-

working from home or to a hybrid scenario.

office project to obtain Bureau Veritas' Safe

sibility and the safety measures taken inside

No person or company was spared of the

Guard certification, in June 2020, followed

the office building are the two most important

uncertainty of the near future and most em-

closely by Business Garden Bucharest.

factors in deciding whether to take or keep a job.

ployers had the same goal: keep employees safe and companies active. ings about returning to the office full time,

What are the benefits that green and sustainable buildings can offer to employees in difficult times like these?

companies still need time to assess the impact

Green and sustainable buildings mean more

To what extent do you think this adaptation of office buildings will contribute to a better employee performance?

of remote working and decide what the future

than technical specifications, but those have

Developers and tenants should make a joint

should look like. After a year, we are able to

a direct impact on the comfort of their us-

effort, as the comfort provided by the build-

understand more and weigh pros and cons

ers. Healthy air conditioning and a superior

ing quality and proper safety measures – both

while taking a thorough look at the past year

ventilation system – providing 100 percent

in common areas as well as in leased space

in order to plan out next steps. It is important

fresh air – combined with Vastint’s standard

– are directly related to higher productivity.

to see the downsides of the working from

3-metre floor heights and openable windows

A proper working environment means happy

home period, with research having shown

are key factors in providing proper ventilation

employees, which improves focus and leads

that 69 percent of employees have experi-

of offices, which is very important in today’s

to increased efficiency.

While employees may have mixed feel-

www.business-review.eu Business Review | April 2021 May 2016

SUSTAINABILITY COVER STORY 149

Setting highly sustainable goals Vanessa Butani, Head of Sustainability at Electrolux Europe, talks to Business Review about the company’s strategic goals and offers insights into how our day-to-day lives could be more sustainable.

By Anda Sebesi and challenge the perception that healthy cooking is difficult, takes a long time, and doesn’t taste good.

What can you tell us about the innovative features and technologies embedded in Electrolux appliances?

We always try to challenge ourselves and we set targets like reducing the amount of energy we use in our products by 25 percent by 2025.

In terms of specific technologies, we have the FridgeCam, which allows consumers to remotely check on the contents of their fridge via a mobile app, and it’s very helpful because using what you already have helps you avoid overconsumption and food waste.

What are Electrolux’s business objectives in terms of sustainability?

ing to become a consumer-driven experience

Sustainability is truly part of our DNA and

actions that have allowed us to leverage our

Can you provide some details about the Sustainable Eating concept?

part of who we are as a global appliance

heritage and build our brand have been our

Through the Electrolux Food Foundation

manufacturer. As a leader in sustainability,

campaigns, including Make It Last, where our

we promote sustainable eating by helping

we launched the Better Living Programme

target is to make clothes last twice as long

consumers reduce food waste, adopt more

in 2019 as an 11-year action plan that aims

and have half the environmental impact. In

plant-based eating, minimise nutrition loss in

to shape better and more sustainable living

order to achieve this, we’ve had to get back to

cooking, and enhance sustainable eating ex-

around the world. Its focus is an evolving

consumers and change their behaviour and

periences. Public data shows that 52 percent

list of 100 bold actions that we pledge to

habits. Through the Make It Last campaign

of people consider themselves to be climate

undertake by 2030. These actions represent

we help consumers use our products in a way

conscious, yet we don’t live as sustainably as

our commitment to the four 2030 targets

that can make their clothes last longer. And

we would like. Hence, empowering consum-

which we have defined across the categories

it is not just about the washing machine; it

ers and trying to close the gap between what

of Better Eating, Better Clothing Care, Better

is about using it the right way, understand-

they want to do and what they are actually

Home Environment, and Better Company.

ing its functionalities, and thinking ahead.

doing is a big challenge. Many people don’t

For example, Future Sustainable Kitchen,

Our study called The Future of Laundry,

understand all the functionalities of their

an online event that took place recently,

which included around 13,000 people across

appliances and how they could use them in a

brought together experts from across the food

Europe, found that many of us learn to wash

more sustainable way, so all the technologies

ecosystem to discuss how we could all work

our clothes from our parents and our habits

we’ve introduced allow consumers to find

together to turn sustainable eating into the

need to be updated considering the high qual-

easier ways to cook food in a healthy man-

preferred choice.

ity of detergents nowadays, as well as how

ner. Last but not least, in October 2018, the

powerful our washing machines are and their

Electrolux Food Foundation launched Food

What measures has Electrolux taken in order to achieve these sustainability goals?

multiple functionalities.

Heroes, an educational initiative for kids, in

The first step was recognising our role and

with SideChef, an all-in-one home cooking

aim is to inspire the next generation to eat

what we could achieve by setting ambitious

platform that provides over 18,000 interac-

more sustainably and teach them about the

targets. We created a consumer experience

tive smart recipes with dynamic guidance. We

important relationship between food and the

organisation to show that we were really try-

want to help people cook more sustainably

welfare of our planet.

company. In addition, among the concrete

On the food side, we’ve partnered up

partnership with AIESEC and Worldchefs. The

10 COVER STORY

www.business-review.eu Business Review | April 2021

EVERGENT INVESTMENTS SETS TARGETS ON REAL ESTATE, AGRIBUSINESS AND CLEAN RESOURCES

www.business-review.eu Business Review | April 2021

COVER STORY 11

In March 2021, SIF Moldova became EVERGENT Investments. For the first time in Romania, a financial investment company is changing its name and aligning with the new European legislative framework on alternative investment funds. EVERGENT Investments is the company with the largest capitalisation of all financial investment companies listed on the Bucharest Stock Exchange (RON 1.38 billion). Over the last 10 years, the company has seen sustained growth dynamics, with the fund’s compound rate of return reaching 9.23 percent, which is 1.77 percent above the average return obtained by all other equity funds in Romania. Business Review talked to Claudiu Doroș, the CEO of EVERGENT Investments, to find out more about the company’s plans.

By Aurel Constantin How has the pandemic influenced the activity of EVERGENT Investments?

full of tough news and measures, the psychological effects of which

The pandemic’s impact on the global economy has highlighted the

review our strategic options, and reach conclusions that were not

importance of resilient investments and risk management in times

at all surprising. One of these was the fact that EVERGENT’s private

of prolonged turbulence. Robust businesses, solid strategies, and

equity portfolio is robust and profitable, and that two sectors – resi-

high-performance portfolios that can generate profit even in crisis

dential real estate and agribusiness – are by far the best options for

cannot be built overnight; they require a deep understanding of

future growth. We have realised that our portfolio has had excep-

asset management and capital markets. The healthy growth with

tional risk/return ratio during these times, so we have decided to

perseverence of a business must be carried out in well-planned

bravely invest in development. In the medium term (3-5 years), we

stages, over a long period of time. The 2008 economic crisis and the

will reach an exposure of 25-30 percent of our assets in these sectors,

turmoil caused by the pandemic have shown us that, just like in any

compared to 10 percent currently. Our real estate projects, namely

other modern crisis, those who have the resources and the strength

Veranda Mall in the Bucur Obor area, Baba Novac Residence in the

to hold on and to rebalance their investment positions can generate

Dristor area, and Atria Urban Resort – a four-stage development proj-

sustainable profits.

ect near Straulesti lake with an environmentally-friendly concept

are still difficult to evaluate, we have managed to test out our ideas,

2020 might have been a lost year in terms of both global and local

through its special landscape design and above-average quality of

stock exchange indices. But as the saying goes, “good things happen

living – have a strong potential of generating positive cash flow for

to those who wait.” Our current strategy, which we have made pub-

EVERGENT Investments. This encourages us to move on to the next

lic, aims to generate value for our shareholders in the long run.

level of quality, targeting premium areas and other big cities. The

One of EVERGENT Investments’s strategic directions is an active

Agrointens company, which manages almost 100 hectares of blue-

management of its listed portfolio, based on two stable pillars: the

berry fields, has confirmed our financial projections and will enter

finance and banking sector and the energy and utilities sector. In

a new accelerated development stage through new field purchases

the last 10 years, we have focused primarily on the two listed banks

and plantations of a high qualitative level. We are already leaders on

in our portfolio (TLV and BRD), to a great extent on the shares of

this market in Romania and we have decided to also take the lead in

the biggest Romanian producers of oil and gas (SNG and SNP), on

the region, as demand in the EU, our target market, is very high.

energy (EL, SNN shares), as well as on national transport operators

To conclude, we have a new goal of purchasing land and driving

(TGN and TEL). We have kept our exposure on the shares of these

development with special yields based on the fact that our busi-

companies despite the pessimistic views expressed by some vocal

ness model has been validated even during the pandemic, and our

analists in the public sphere, which were somehow understandable

experience gives us the confidence to believe that we hold the recipe

due to the uncertainty generated by the pandemic. The solidity of

for long-term success. We can let figues speak for themselves when

these companies’ business model, their available resources and

it comes to EVERGENT Investments’s results during the pandemic.

reserves as well as their high-performance portfolios have made

Our 2020 net profit reached RON 56 million (consisting of net profit

them less vulnerable. Stock exchange indices that cover these shares

and net gains reflected in earnings from other comprehensive

serve as proof. In Q1 2021, we saw a beautiful recovery of the decline

revenues), which exceeded our forecasts by 44 percent. Addition-

recorded in the summer of 2020. Obviously, we have permanently

ally, the value of investments reached RON 177 million in 2020, 68

recalibrated the listed portfolio portfolio based on predictable short-

percent above the budgeted level.

medium term evolutions, in order to increase its performance, and we have been successful so far. In the long run, we will benefit from obtain sustainable revenues from new investments for our share-

What is the outlook for the investment market in the next 12 months considering the fact that we are still dealing with the pandemic’s restrictive conditions?

holders. Furthermore, although we have all gone through a period

Capital markets are on an upward trend globally, and the movement

double-digit yields, which is not at all easy in our industry. We will

www.business-review.eu Business Review | April 2021

12 COVER STORY

that started at the end of 2020 – of increased capital inflows from

citizens’ need for quality homes, the easier and cheaper financing

technology companies towards traditional companies, with a cyclic

process, and the profitable activity for developers, where quality,

evolution – is having an impact on the Romanian market as well,

experience, and responsibility make all the difference.

which confirms our expectations of an economic recovery. “We can state that we are experiencing the beginning of a new economic

Where do you see EVERGENT Investments five years from now?

cycle, which is also stimulated by support packages in the EU, US,

EVERGENT Investments is a powerful as well as a modern company,

and Asian countries. We are noticing enthusiasm among individual

built through a great and lengthy endeavour, and has been setting its

investors, who have more economic resources than they did before

goal of being a leader. We have aquired an efficient and sustainable

the pandemic, but also have an appetite to invest on the Bucharest

business model and we are one of the top players of this industry in

Stock Exchange. Romanian and foreign institutional investors, pen-

Romania, with well-rooted and transparent values and an excellent

sion funds, local and regional investment funds were all encouraged

financial performance. This success is based on our professional

by the Romanian market being upgraded to emerging status.

ethics, which are grounded in responsibility, innovation, and perfor-

Considering the fact that the Bucharest Stock Exchange recently

mance, as well as our personal values, which are embraced by each

exceeded its 2007 record, with the BET Index reaching 10,961 points,

team member. We are passionate about what we have been doing so

the best performance in its 24-year history, we strongly believe

far and clearly understand our mission of managing assets to obtain

that we have good reasons to be optimistic about the year ahead.

The fact that stock exchange indices are

value in the long run. As a result, all our actions are centred on our shareholders and the benefits we can offer them. As we have already shown, we like to

recording historic highs these days must be

believe that we have in-depth knowledge to

looked upon from a broader perspective,

recognise and take advantage of oppor-

alongisde an analysis of parameters such

tunities to generate valuable long-term

as total volume, liquidity, depth. Our

investments. But we also have the

market is small and still cheap com-

ability to set up an optimal exits when

pared to other emerging markets, but

an investment reaches maturity or our

these weaknesses are in fact hiding

projected financial target.

big opportunities, and investors know

Within a decade, we have doubled

that. Since the start of the year, the main

the assets under our management to

indices have increased by 10 percent on

over RON 2.2 billion, and to make this

average. That is why a growth scenario of

happen we have invested and re-invested

another 10 percent is credible, to reach a 20 percent total increase over 12 months. There may come times of corrections, with high volatility levels, but these should be seen as aquisition opportunities. Moving

roughly RON 2 billion. During that time, we distributed almost RON 700 million as dividends.

We have generated an average ratio of value appreciation for shareholders, cashed in dividends in addition to an

on to the real estate market, in the residential sector, all statistics

asset increase of 13.2 percent, and recorded a performance above the

show buyers’ interest remaining stable and demand progressing

average return of all equity funds in Romania. We are not looking for

towards larger apartments, in order to accommodate remote work-

exotic markets or products. We would like to continue investing on

ing needs, together with a preference for open areas like terraces,

the Romanian capital market, which we know very well. We have

gardens, and parks. Data also show that the amounts available for

developed an efficient and sustainable business model, which is

apartment purchases are at the highest level of the past few years, as

bound to remain successful and provide us with a continued “drive

are salaries, which also encourages banks with excess liquidity to rev

for performance,” just as our slogan states.

up crediting engines.

As the end of the pandemic approaches, we’re seeing demand for

The EVERGENT Investments Board of Directors will continue to implement a well-defined investment strategy and seek to reward

houses increasing, and areas with natural greenery near Bucharest,

shareholders through an optimal mix between a predictable divi-

the biggest real estate market in Romania, will become new destina-

dend policy and annual redemption programmes, which will offer

tions for the systematic development of condominium-type hous-

superior yields now and in the long run, as opposed to a simple

ing, with high-quality facilities and services. For instance, along the

delivery of dividends.

A3 Bucharest-Ploiesti motorway, after a few kilometres of logistics

Within the next 5 years, we will harvest some of the results from

and residential developments, there are woodland areas with excel-

our current portfolios and will direct our investments towards

lent air quality, especially around Moara Vlasiei and Ghermanesti

rapidly-expanding and valuable new sectors, including a strong

exits, and they are quite close to well-established communities such

component of social and environment responsibility. Sectors such as

as Snagov. The pace of building and selling in other big cities of Ro-

intensive agribusiness, clean resources, eco-friendly buildings and

mania, such as Iasi, Cluj, Brasov or Constanta, is also encouraging for

housing, and perhaps even new technologies that could increase

investors. We can actually see a virtuous circle developing between

citizens’ quality of life will be some of our main targets.

www.business-review.eu Business Review | April 2021

Romania’s star sectors With the strongest increase in Gross Domestic Product in the European Union in the last quarter of 2020, of 5.3 percent, and a total decline of 3.9 percent over the whole year, Romania’s economy managed to withstand the first year of the pandemic. Along with a series of measures taken by local authorities at the macroeconomic level, the business environment played a significant role in this achievement.

Business Review decided to talk about five star sectors of the local economy – from logistics to the chemical industry, IT & telecommunication, automotive, and retail – which performed well last year and are now well equipped to face the challenges of a local business environment that will be strongly influenced by the persistence of the coronavirus pandemic.

MAIN STORY 13

www.business-review.eu Business Review | April 2021

14 MAIN STORY

Romania remains a giant of the global chemistry industry This year, Chimcomplex will open the most modern polyol plant in Central Europe, after an investment of EUR 40 million at Oltchim. Stefan Vuza, the president of the company, tells Business Review how operations carried out by Chimcomplex are consolidating Romania’s position on the map of global chemistry industry giants.

By Anda Sebesi What can you tell us about the inauguration of the newest polyol plant in the region, in Ramnicu Valcea?

Chimcomplex-Oltchim has a strong focus on innovation. How do you keep up with giants in western Europe?

This year we are going to complete our

Tradition and experience matter and

investments in the newest and most ef-

Romania has been – and continues to

ficient polyol plant in the region, worth

be – a giant in the world of chemistry.

almost EUR 40 million. This will increase

This is how Chimcomplex has managed

our production capacity to over 140,000

to become a strategic company for the

tonnes/year, and we will be among the

national economy as well as a champion

top 8 players in Europe by volume. Poly-

of the chemical industry, and it has the

ols are used in a variety of sustainable

right infrastructure to begin moving

applications, from wind turbine blades to

Romania towards a green future.

We want Romania to become one of

insulation materials for the construction industry. At least 10 polyols produced at

the biggest Hydrogen Hubs in Europe.

Oltchim can be found in any apartment.

Our plan involves several phases, which will transform both our production

Our special polyol plant is designed with high-performance features in terms

systems, making them completely green,

of digitalization, energy efficiency, and

as well as the energy sources we use,

disposal of manufacturing waste. Its

turning into a country project worth over

annual production capacity will be the

EUR 1 billion. We are also innovative in

equivalent of 3,500 km of new 2x2m

terms of the chemical recycling we have

flexible mattresses. The new plant will benefit from the exceptional

been doing for several years now. In 2020 alone, we recycled over

work carried out by our team from the Polyols Centre for Advanced

1,000 tonnes of hydrochloric acid. We are one of the top three com-

Research and Development, which has an experience of over 40

panies in the EU that have such projects, along with giants Covestro

years of operation and cooperation with Romanian customers and

and Dow.

laboratories as well as international universities and research institutions.

It certainly is. We are specialised in polyols, and in order to stay in

The European Union has indicated that it will only support industries whose carbon footprint is diminished by investments in new technologies. What are Chimcomplex propose in this new context?

the lead, we’ve had to do constant research and innovation. Oltchim

We capture and reprocess over 5.400 tonnes of CO2 every year.

has always conducted and financed research in polyols, and we

Chimcomplex-Oltchim absorbs CO2 emitted by other industries and

have also designed and built polyether production facilities and

uses it in chemical processes alongside green (and newer) blue or

contributed to the attainment of over 80 patents, which allowed the

gray hydrogen. We will continue to invest in new technologies in

export of polyethers to over 43 countries in Europe, Asia, and Africa.

order to increase the CO2 mass we are able to capture and we will

Innovation projects and the flexibility of development teams are the

reprocess it into 12 finished products, through 6 production lines.Our

company's top strengths. Today, we have conducting research for

new plant will produce polyols which use CO2 as a raw material in or-

14 new patents. Just to give you an example, we are talking about

der to reduce carbon footprint, resulting in significant environmental

polyols from vegetable oils, i.e. polyols that use castor oil as a raw

benefits. In essence, we will be among the top 10 companies in the

material.

world that are manufacturing polyols without causing pollution.

Is chemistry research still being carried out in Romania?

www.business-review.eu Business Review | April 2021

MAIN STORY 15

The impact of COVID-19 on foreign investments and legal services Jörg Menzer, Partner, Head of Central and Eastern Europe (CEE) offices, and coordinator of the international clients practice at Noerr, talks to Business Review about the pandemic’s impact on foreign investors and legal service providers in Romania.

By Anda Sebesi How hard has the COVID-19 crisis hit investors in Romania?

resulted from this crisis period

At the beginning of the pandemic,

truly made these relationships

many projects, investments, and

more intense.

were rather surprising, but they

business expansions were halted or postponed. It was crucial for impact on its current activity and

How have client needs changed over the past year based on your experience at Noerr?

to build the mechanisms it needed

First of all, we can say that legal

to deal with the situation. And

consulting has not been negatively

due to travel restrictions as well

affected by the crisis – in fact, I

as the need to move employees

could say the opposite has hap-

into home offices and strengthen

pened. We reacted very quickly,

digital backbones, national and

we established both a CEE and an

international investors started to

international coronavirus centre to

look inward.

deal with the latest legal changes,

every business to understand the

In the last few months, I’ve

and focused on the needs of our

seen renewed interest in projects that had been put on hold, new

clients. The full-service structure of Noerr helped a lot here. Our

projects, as well as opportunities arising from the crisis. Additionally,

clients needed a proactive approach during these times of constant

many companies have understood the opportunity provided by the

change, which includes the legal environment. Uncertainty and

crisis, whether it’s that of acquiring other businesses or setting up

unpredictability were suddenly key drivers for every business and

new business models using the drivers

our role was – and continues to be – to

of digital transformation.

deal with this unprecedented situation in an agile way.

What impact has the crisis had on legal service providers?

Most law firms, including Noerr, quickly switched to partial or full remote

What lessons did you learn in the first year of the pandemic?

The only predictable thing is the

working models. This was quite easy

unpredictable, so we must always be

to do for some – for example, Noerr

ready and willing to change. This is

moved 1,200 people online within 10

part of the Noerr culture and a driver of

days – while others struggled more. The

our 2025 strategy. Digitalization is defi-

real impact of this is still to be under-

nitely a must for mature companies.

stood, and it will end up shifting the

However, what we have learned is that

way legal services are provided in the

digitalization can be used to bring more

future. Furthermore, the way we inter-

flexibility in interactions with clients.

act with clients changed as Zoom and

Businesses must not shy away from

Teams meetings kicked in. Personal

new models and be ready to switch

discussions sometimes went even deeper and were easier to handle,

gears if necessary. Building talent remains a major goal, as we always

as consultants and clients looked beyond the professional relation-

have to rely on each other and build team spirit as digital communi-

ship and also saw the “human” side of it. These developments that

cation tools turn into business as usual.

www.business-review.eu Business Review | April 2021

16 MAIN STORY

Mihnea Radulescu, Vodafone: Our role goes far beyond providing traditional telecommunications services; we are now technology providers Technology has been a crucial element of the past year and the telecommunications infrastructure can now be seen as a utility service, along with power, water or gas.

Business Review talked to Mihnea Radulescu, Business Director at Vodafone Romania, to find out about how technology and digital services are supporting the economy and how telecommunications operators’ role has been evolving towards technology providers.

By Aurel Constantin The importance of technology has been made clear to us over the past year. How does digitalization contribute to economic recovery plans?

companies that have done better have

One of the things we’ve learned from

Some firms have acknowledged these

the coronavirus pandemic has been

realities. It is clear that small compa-

how important technology is in our

nies need help, especially now that it

day to day lives. It is easy to imagine

is becoming increasingly difficult for

how much more difficult this pandemic

them to survive. We now have a chance

would have been like 15 years ago,

to advance digitalization by using

without the connectivity and mod-

European funds, but also that it would

ern communications tools available

be great if absorption processes were

today. We can see that the telecom-

simplified.

been the ones with a higher degree of digitalization, such as restaurants that had more online sales than before.

Another important aspect is under-

munications sector has supported the economy just as much as energy or any

standing the term “digitalization.” We

other utilities have over the past year.

talk about it a lot, but different people

Hundreds of thousands of people have

and institutions have very different

been working from home, using vari-

interpretations of it. Many companies

ous levels of technology, which would

do not know what they need in terms

have been impossible without this IT&C

of digitalization. Some think they just

infrastructure. The crisis has opened many eyes, both in the general

need some equipment, others think they just need a website. At Vo-

population as well as among companies and public authorities, to the

dafone, we try to stand by them and explain what a minimum level

fact that the country’s technological capability has largely contrib-

of business digitalization means and how companies’ specific needs

uted to its economic resilience.

can be translated into the right digital solutions that bring real value

The crisis has confirmed what was already known from country

to their business.

reports, like the DESI Index, that technology adoption among Romanian companies is very low, which makes them vulnerable to the up to 250 employees. The worst situation is that of companies with

Digitalization is a process of transformation that the entire economy is currently going through. What are some concrete solutions that companies and institutions should adopt?

less than 50 employees, which are the most numerous in Romania.

Understanding digitalization requires education. There are differ-

Small businesses account for 52.7% of total value added and 65.8%

ent levels of education one may attain on this matter; some require

of employment in Romania. . But Romania ranks 27th among EU

short-term training, others involve a long-term effort. For the long

countries on the Integration of digital technology by businesses,

term, we need the education system to begin addressing these

well below the EU average. The rate of of SMEs selling online, for

needs. But for the short term, the responsibility falls more to tech-

instance, is 11%, according to DESI Index, while the European aver-

nology providers. There are about 700,000 companies in Romania,

age is 18 percent.

and Vodafone has a significant share of the market. We do talk to our

economic crisis. Those most exposed are SMEs, i.e. companies with

A digital economy is very much based on the digitalization of

customers about digitalization and we help them understand what

these small companies, including the adoption of minimal technol-

they need, so we contribute to raising the level of education around

ogy solutions like a website or an online shop. During this crisis,

this matter. Choosing the best approach to implementation is anoth-

www.business-review.eu Business Review | April 2021

er story, but there are funds available for digitalization consulting.

Speaking of digital solutions, we should also acknowledge the differences between the private and public sectors.

In the public sector, we should first look at the different subsec-

MAIN STORY 17 operators have made great efforts to bring equipment and solutions to these families. 250,000 tablets were delivered following the tender coordinated by the Education Ministry, and Vodafone Romania was one of the providers, with more than 100,000 tablets delivered.

tors. Apart from a few institutions, it is a well-known fact that most

But it was not an easy thing to do within a very tight deadline and

government bodies are very far away from what we might call digita-

considering the huge demand for devices during this period,. And it

lization. Even though some progress has been made, there is a whole

is not enough; Digital content is almost non-existent, so the whole

layer that’s either missing or is unfit for the needs of both institu-

system must be completely reformed to be brought into the present.

tions and citizens. I would call that layer ICT (information and com-

There are digital solutions that could bridge this gap, but they are

munication technology), to include everything that has to do with

not enough to create a modern education system. And if things don't

platforms, servers, data centres, software, cloud, security solutions,

change soon, entire generations of children will suffer.

and others. Let's take the Health Ministry as an example: it lacks a well-developed, centralised system that could help it communicate with other institutions about the population’s health.

Does the technology industry have solutions for all these social and economic problems?

Technology and digital solutions are already here and there is

How much do we need digitalization in sectors like health and education, for example?

enough expertise on the market to implement them effectively. Let’s

We’re talking about telemedicine, 5G connectivity, and remote sur-

interactions with citizens mostly take place offline today, with only

gery – these technology solutions are available and could be imple-

a few positive examples of online services. Administrations can

mented. However, there are certain pre-requisites that would make

use sensors for smart lighting or monitoring waste collection and

take smart city and smart administration policies as an example:

these solutions work effectively, like access to the patient’s full medical history. This modern database layer needs to be created with strong security and access controls, with accurate data about patients and their medical history. Today, a doctor can examine a patient remotely, by checking his general state, but he knows nothing else about the patient unless they have been his or her doctor for a long time, because the full medical history isn’t available These data would provide a full image of the patient's condition. Besides that, some simple equipment can also be connected to the system, such as bracelets

recycling, for example. On the traffic management side, there are

that take the patient’s pulse and blood pressure and automatically

platforms available that use artificial intelligence. To streamline

send the information to the doctor.

communication with citizens, government agencies can adopt

Furthermore, the patient must be prescribed a treatment. But

digital solutions that we have implemented for private clients in

that cannot be done without all their medical records, because

Romania. At the same time, telecommunications providers can play

the doctor cannot prescribe something without knowing what the

a more active role in the digitalization process. In Vodafone’s case,

patient might be sensitive to. Also, how does the patient get hold

we’ve no longer been just a telecommunications provider for old

of the prescription? Without an ICT infrastructure behind it, it is

customers for quite a while now. They are now buying security, IoT,

impossible. So we need reform in order for digitalization to be imple-

and automation solutions from us. Of course, telecommunications

mented effectively. We cannot go straight from carbonless paper to

remain the backbone of our services, but we’re doing much more

electronically-signed prescriptions.

today. We aim to bring value to the client's business, to offer solu-

If we keep our focus on reforms, we can go a long way in a short

tions that increase their profitability and reduce their costs. We have

amount of time. There is a solution for any problem when it comes

implemented solutions in sectors like retail, logistics, agriculture,

to digitalization and technology, but we need to put that basic infra-

and fleet management; all this experience and know-how allow us to

structure in place.

play an important role in our clients’ digitalization journeys.

It is much harder to rehabilitate the Romanian railway network

We will launch some new tools to provide assistance to compa-

than to digitalize key sectors like healthcare or education. But we

nies in the digitalization process. We started with big clients, for

need to do it right now, to have the willingness to do it. If we don’t

whom we’ve customised a lot of solutions, but now we are moving

start now, it will end up taking much longer. Last year we saw many

towards a standardisation that will allow us to offer similar solutions

children being unable to attend online education. Communications

to smaller companies as well.

www.business-review.eu Business Review | April 2021

18 COVER STORY

Dacia seeking to democratise electric mobility with Spring model Mihai Bordeanu, the Managing Director of the Dacia brand and CEO of Automobile Dacia, tells Business Review why the automotive market is a driving force for the local economy and how the company’s first fully electric car will impact both the local and the European markets.

By Anda Sebesi The automotive market is a star sector in Romania and a major driver of economic growth. How has Dacia contributed to this growth in recent years?

price. This is true not just for

The automotive industry is very

We can therefore say that Dacia

important for Romania, as it rep-

is democratising electric mobil-

resents 14 percent of GDP and 26

ity, making it accessible for all. It

percent of exports. It is a big part

is more than a change; it is a real

of the Romanian economy. Since

revolution, the third one in the

2000, Groupe Renault has invested

history of the brand, after the

over EUR 3 billion in Romania for

launch of the Logan model in 2004

the development of new products

and the Duster in 2010.

Romania, but for all the markets where the model will be sold.

Dacia Spring will be the most affordable electric vehicle in Europe.

such as cars, engines, and gearboxes, as well as in improvements carmaker has improved working

How will this launch change customers’ perception of the Dacia brand, in Romania and abroad?

conditions and quality, boosted

Dacia has already evolved enor-

automation, optimised costs, and

mously since the launch of the

integrated new technologies at the

first-generation Logan 16 years

Mioveni plant in Arges county. We

ago. From initially being perceived

to the manufacturing process. The

operate inside a competitive indus-

as a low-cost brand, Dacia has

try which evolves extremely rapidly. The challenges generated by the

come to illustrate the concept of a “smart purchase.” The philosophy

health crisis have motivated us to constantly prepare for the future

of the brand is to offer simple, spacious, reliable, and robust vehicles

by adapting to the new normal and being agile. Romanian authori-

with no unnecessary frills, at the best prices on the market. Dacia

ties have responded well and have helped the car industry through

Spring therefore embodies the brand’s DNA. It is a car that com-

concrete measures: the car fleet renewal programmes ("Rabla" and

bines simplicity, reliability, and affordability. But that’s not all – with

"Rabla Plus"), financial aid for technical unemployment, kurzarbeit

Spring, Dacia proves that an electric vehicle is not necessarily a niche

options, and state aid for companies. Dacia cars are not only made in

product. The advertising campaign created for the launch illustrates

Romania; they are very well made in Romania.

yet another side of our philosophy: the fact that a Dacia car can be both essential and fun.

In late March, Dacia opened online pre-orders for the Comfort Plus version of its first electric car, the Dacia Spring. What does this launch mean for the Romanian market?

How has Dacia adapted to the pandemic?

Indeed, Dacia Spring pre-orders opened online on March 20, the

and the health of all our employees, together with preserving jobs.

first official day of spring. There were more than 4,000 pre-orders

Besides the industrial site, where activity was suspended during

recorded just in the first two days. And we are talking about people

the state of emergency last year, all our other activities carried on

who haven’t even seen the car in showrooms yet. There is a very

uninterrupted, and teleworking was encouraged. We were among

simple explanation for that: with Spring, Dacia is offering an electric

the first industrialists in the country to resume operations after the

urban vehicle that meets customers’ real needs at an unbeatable

lockdown by taking the necessary measures.

From the beginning of the crisis, our priority has been the safety

www.business-review.eu Business Review | April 2021

COVER STORY 19

Top 10 largest industrial parks under construction in Romania Considered to be the star segment of the real estate industry right now, the industrial market continues its dynamic development, with a national vacancy rate of only 8 percent. Romania’s modern industrial spaces stock exceeded the threshold of 5 million square metres in 2020, with 570,000 sqm delivered last year alone, according to CBRE Research.

A

By Anda Sebesi In addition, the western/

round 65 percent of the industrial space de-

north-western region has man-

livered in 2020 was in

aged to pre-lease 75 percent of

Bucharest, which remains Ro-

the supply that is still under

mania’s largest industrial hub,

construction. “As for the

while the other 35 percent was

nature of the activities that

split among regional cities such

will be carried out by future

as Deva, Oradea, Sibiu, and oth-

occupiers of the pre-leased

ers. But how is 2021 looking in

spaces, based on the available

terms of new projects?

data, we know that over half of the space (54 percent) has

INDUSTRIAL DYNAMICS: 400,000 SQM UNDER CONSTRUCTION

been contracted for distribu-

Top developers already have

of the total pre-leased space,

around 400,000 sqm of indus-

while production and logistics

trial spaces under construction

jointly claimed 6 percent of

tion purposes. Next in line was storage, covering 40 percent

the new supply. As distribu-

at the moment, which will increase the country’s modern stock to approximately 5.5 million

tion and storage are the main drivers of demand after a year when

sqm by the end of the year, based on CBRE data. “2021 meets all

e-commerce had a tremendous boost, they’re only strengthening the

the prerequisites to be an excellent year for the industrial property

trend that started taking shape at the beginning of 2020, contributing

market in Romania, after 2020 turned out to be a record year, with

to the new industrial horizon,” said Daniela Gavril, Head of Research

over 930,000 sqm traded. Developers are investing in different areas

at CBRE Romania.

of the country, from the well-known Timis area to Brasov and Bacau,

Last year, 70 percent of total demand was concentrated around

which are beginning to attract growing interest because of quality

Bucharest, while the western/north-western region attracted 16

land and labour force availability,” says Razvan Iorgu, Managing

percent of the total leased area. The main operation performed by

Director at CBRE Romania.

tenants who leased industrial spaces in this region was distribu-

With an overall vacancy rate slightly below 40 percent, the proj-

tion, as half of the total area was leased for this purpose, followed

ects in the pipeline show a higher level of maturity for the Romanian

by logistics with 20 percent and production with 19 percent. Storage

industrial market, while developers have the confidence to integrate

and other types of operations jointly accounted for 12 percent of the

a speculative element into their projects as well, following a record

total contracted area. Even though Romania has seen rapid develop-

year in terms of demand. 64 percent of the upcoming new supply

ment of its industrial market over the last five years, having doubled

will be built in regional cities, which are becoming key locations on

its stock during this period, our country remains below the regional

the logistics map. The western/north-western region of the country

average, with only 260 sqm of industrial space per thousand inhabit-

has attracted the largest share of developments, namely 52 percent,

ants. By contrast, Poland has an average of 510 sqm per thousand

followed by the southern region with 34 percent and the central area

inhabitants, while the Czech Republic reaches 840 sqm. In the next

with 10 percent, while the eastern region will only get 4 percent of

5 years, CBRE data indicate an increase of over 50 percent in the

the total, according to CBRE Research.

industrial spaces stock, up to 8 million sqm.

www.business-review.eu Business Review | April 2021

20 MAIN STORY

Online and offline shopping will come together as one Gianluca Martora, the CEO of Winmarkt Group, the Romanian subsidiary of Immobiliare Grande Distribuzione (IGD), tells Business Review about how the company has been coping with the pandemic and discusses future trends in the retail sector.

By Anda Sebesi What is Winmarkt’s vision for 2021 considering the difficult situation we are all currently facing?

were not comparable to those

Even though 2020 was the most

centres and they focused more on

difficult year in the history of our

planned shopping than on impulse

Group, both in Romania and in

shopping. At the same time, the

Italy, Winmarkt and its group (IGD)

traffic reductions were within

are ready to grow again in 2021. In

the limits of our estimates and

fact, our main drivers in 2021 are

expectations. We are clearly aware

recovering lost occupancy rates,

that the pandemic has brought

consolidating strategic tenants,

deep changes to both shopping

finding new opportunities, new

experiences and consumer habits,

tenants, new clusters, and new

and we need to rethink the way we

use destinations. We are counting

communicate with our custom-

on a scenario of gradual economic

ers. The significant operational

recovery and increased consump-

limitations we experienced in 2020

tion over the course of 2021.

provided us with a clear view of

recorded during the same periods of the previous year. However, people spent less time in shopping

the fact that people appreciate

How will the pandemic change shopping centres’ business practices and what will be the top trends from this perspective?

In the future, we will need to live with e-commerce: our response

being able to shop in a safe, highlycontrolled environment, with a clear set of rules to be followed.

was and will continue to be improving our shopping centres as places

Can you make a comparison between downtown retail – Winmarkt – and uptown retail represented by big malls?

that provide experiences and services. The entire sector needs to

Big shopping malls are often located in large and medium-sized

understand that these changes must be embraced right now. Online

cities with a wider offer of commercial brands and a focus on food

shopping comes with the advantage of speed and convenience, while

court and entertainment services. And as we all know, these were

offline shopping provides a customer experience that cannot be

the retail structures that were most affected by restrictions, as they

totally replaced by online experiences. We will no longer view offline

were among the most critical clusters. On the other hand, we have

and online shopping as separate; they will come together as one. The

downtown or proximity retail – the Winmarkt network comprises 14

convergence between offline and online retail will be supported by

shopping centres and an office building offering a balanced tenant

technological advances.

mix of international, national, and local brands. "We are downtown" has always been our concept. Our shopping centres cover medium

What can you tell us about the behaviour of local Winmarkt network consumers?

to small surfaces that allow flexible management. We have a variey

In the 13 medium size-cities where Winmarkt operates, the number

because of our format. At the moment, the Group is focused on the

of COVID-19 cases was not as high as it was in Bucharest, so custom-

development of its portfolio, and the pandemic has not changed this

ers reacted differently. When some of the restrictions were lifted, we

target. Proximity retail, street trade, and downtown retail activities –

recorded encouraging flows and satisfactory sales for most of our

including Winmarkt – were less affected by the decrease in customer

merchandise mix. We saw customers gradually returning to shop-

traffic and restrictions, and I hope this will facilitate the recovery of

ping centres, especially in periods with sales, even though numbers

the main economic indicators in the short to medium term.

of non-food stores, and food courts have never been a priority for us,

www.business-review.eu Business Review | April 2021 May 2016

COVER BUSINESS STORY 21 14

Top 3 barriers to international expansion for Romanian firms in 2021 Over the past few years, Romanian companies have started expanding overseas, but certain constraints are expected to influence such scaleup strategies in 2021.

Doing business regionally and globally brings up unique challenges for Romanian founders, but it can be an opportunity for growth as well.

By Claudiu Vrinceanu

EXPORT PROGRAMMES ARE FROZEN An important challenge for Romanian companies is the fact that the government halted financing for the export promotion and company internationalisation programmes for this year. Let's not forget that in 2020, Romania's exports decreased by more than 10 percent, while its trade balance deficit increased by

For many Romanian entrepreneurs, the way they are represented at international fairs is crucial

about EUR 1 billion.

Stopping the internationalisation programme, even temporarily, impacts several

FINANCING

go global. Romanian startups have raised USD

business sectors. Let's just take the example

Access to finance is a basic need of Roma-

1.3 billion in investments since 2013.

of the machine construction industry, a sector

nian companies in the process of expanding

that sells 95 percent of its products on foreign

abroad. The lack of capital is thus a major

LACK OF INTERNATIONAL EVENTS

markets and represents 46 percent of the

barrier to internationalisation for 41 percent

While in-person events will likely start to

value of Romanian exports.

of those who are looking to expand abroad,

come back in the second half of 2021, virtual

but also for 29 percent of Romanian entre-

events will continue to provide strong op-

way they are represented at international fairs

preneurs who have already done so. In terms

portunities for entrepreneurs for at least

is crucial. In fact, there are countries where

of financing in 2021, the vast majority of

another year. The existence of relationships

not being supported by a representative of

Romanian banks expect lending standards re-

and connections inside the target market was

your own government means that you are

lated to company loans to remain unchanged.

a basic requirement for 81 percent of Roma-

not open to doing business. In the future,

However, some banks believe that conditions

nian entrepreneurs when they expanded

participating in international fairs under the

will be tightened for SMEs. Meanwhile, we’ve

abroad. Furthermore, participating in trade

national flag, and not just as individual organ-

seen the launch of new venture capital funds,

fairs abroad was a determining factor in the

isations, will be very important for Romanian

and others are set to invest in the Romanian

internationalisation process for 54 percent of

firms.

technology sector, which has the potential to

business owners.

For many Romanian entrepreneurs, the

www.business-review.eu Business Review | April 2021

22 FDI

Romania’s FDI figures in Q1 2021: good news and trends Even if the decreasing flow of foreign direct investment (FDI) is becoming visible at the statistical level, there is also some good economic news that can make us optimistic about attracting new greenfield investments to Romania. Romania’s FDI level plunged by 70 percent year-on-year in January-February, more than it did in 2020 (60 percent).

By Claudiu Vrinceanu

Barcelona office almost 2 years ago. The new campus will be the company’s first in Eastern Europe, where it expects to employ upwards of 100 people within its first year of operation.

STATE AID FOR FOREIGN INVESTORS Another piece of good news is the fact that Romania can offer the best facilities to foreign companies that want to make investments in 2021, through state aid. In 2020, the government approved state aid for 30 projects with a total investment value of over EUR 500 million. The value of state aid exceeded EUR 170 million for projects approved last year. As a result of these investments, about 3,400 jobs will be created.

Finding ways to attract investors, especially in states with an acute need for foreign capital for development like Romania, should be a major element of public policy in this period of economic recovery. Unlike the Romania can offer the best facilities to foreign companies that want to make investments in 2021, through state aid

one in 2008, the current economic crisis is generated by the global health context, so we cannot refer back to measures taken at that time or expect market players to see the same kind of recovery.

NEW FDI PROJECTS

Hella group, with global business worth EUR

Several new foreign investment projects were

5.8 billion, will hire 100 people in the com-

Amazon announced that was on track

carried out in Romania in the first quarter.

ing period at its facility in Timisoara, which

to add another 500 permanent roles by the

For example, Singapore-based BPO company

will thus become the largest administra-

end of 2021 across its sites and that it was

TDCX opened an office in Bucharest, Amazon

tive centre of Hella’s international network.

planning to open a new office in Timisoara

announced three new offices in Romania

The company currently has a total of 4,200

and two new ones in Iasi. Amazon has been

which will create 500 jobs, and more good

employees across its three research and de-

investing in Romania for many years now. It

news came from the automotive industry,

velopment centres, three factories, and one

opened its first office in Romania in 2005 and

with Hella announcing that it had opened a

administrative centre in Craiova, Lugoj, Arad,

has since invested more than EUR 100 million

new development centre in the country.

and Timisoara.

here, developing next generation technolo-

Auto component manufacturer Hella Romania, the local subsidiary of the German

TDCX opened its second European campus in Bucharest following the launch of its

gies and providing an unrivalled customer experience to customers around the world.

www.business-review.eu Business Review | April 2021 May 2016

COVER STORY TECH 23 14

The era of audio creators: how expats can ride the Clubhouse frenzy Two new types of economies are developing during this period, and the pandemic is only accelerating their growth: the Creator (Passion) Economy and the Audio Economy, based on voice content. Expat managers in Romania can benefit from new social platforms to communicate more efficiently with the local business community.

By Claudiu Vrinceanu Fiverr and Upwork, to connect freelancers to potential customers.

Atelier Ventures, a USD 13 million venture capital fund, has been launched to only invest in startups in the "Passion Economy" sector.

The Clubhouse platform is also growing thanks to its exclusivity element and the FOMO feeling induced by the fact that it’s only available on iOS and that access is invite-based. According to experts, Clubhouse creates a new type of content, through which the guest speaker brings together content creators who add value to the discussion, resulting in a new type of influencers.

Companies and managers should join the Clubhouse platform and create content there, as it is a space that can generate strong links between users. The application is likely to go

W

Romania has tens of thousands of Clubhouse users

mainstream in the next 12 months, i.e. two years after launch.

Romania has tens of thousands of Club-

e are on the verge of a creative

to allow content creators to earn money

explosion, fuelled by the fact that

directly from their audiences. The newsletter

house users – perhaps as many as 100,000

individuals, content creators, as

platform Substack has reached the threshold

– but what’s more important is how many

well as entrepreneurs and investors who de-

of 500,000 paying subscribers and the top

of these users are constantly active. Users

velop content-based businesses have a great

10 content creators in the community have

appreciate the utility of the application, the

chance to generate wealth.

generated total revenues of over 15 million

special type of access it offers, the "live"

dollars. There are only a few dozen Romanian

factor, as well as the fact that most of the

newsletters on this platform, but there is

content is authentic. Expats in Romania,

great growth potential.

managers and entrepreneurs, as well as Ro-

THE FOLLOWING PROJECTS EMERGED IN THE FIRST MONTHS OF 2021: Clubhouse is an audio-based social net-

Meanwhile, Twitter has bought the Revue

manian specialists in various fields must all

working platform where users can listen

newsletter platform. However, the Twitter

become more authentic! Consumers are now

to conversations and interviews on a wide

platform has not been very successful in

consuming business content everywhere,

range of topics. It has raised a USD 1 billion

Romania in terms of adoption. LinkedIn is

whether they’re on the move, at the office or

Series B investment and announced plans

currently developing Marketplaces, a rival to

in their living rooms.

www.business-review.eu Business Review | April 2021

24 WORKING ROMANIA

#futureofwork: Companies seeking new ways to improve employee experience The #futureofwork was discussed during the Spring 2021 edition of Business Review’s Working Romania conference, which welcomed top HR professionals and business leaders. One year into the pandemic, half of all the employees in the country are still working from home, and we are heading towards a hybrid working model in the future. What’s most important to employers today is keeping employees healthy – both mentally and physically – and engaged with their work.

CARMEN DUMITRACHE, TELEKOM

ANDREEA VOINEA, BCR

“One of the first things we did as an employer

“The COVID-19 crisis has helped us improve

when the pandemic started was to create a

our services and become more accessible

programme called Healthy Me, which was

for users. During this period, as forced by

made available to all team members and ad-

circumstances, we’ve also explored new

dressed all areas that we knew were impor-

business models such as the remote

tant for the management of emotions and

contact centre and remote advisory,

knowledge. It included a fitness part, with

which have been well received and that we

physical therapy, yoga, and others, but also a

will expand in the future. Now, in George

Healthy Lead part for managers and leaders,

digital application, we are working to extend

to help them handle the changes caused by

all the retail facilities we have to the corpo-

the current situation.”

rate area."

VERONICA CRISTEA NANU, HUAWEI ROMANIA

RADU MILOS, ELYSIAN SOFTWARE “The pandemic brought a flexible way of

CRISTINA MANCAS, SCHNEIDER ELECTRIC

“We are hearing more and more talk about

working, a hybrid between home and office

“Open Talent Market is a platform that all

digitalization and I think it is important to un-

work, which we support through the Tassis

employees can join to connect with mentors

derstand what it means to us. We must start

application, a collaboration platform which al-

from all over the Schneider network in order

from the premise that digitalization translates

lows you to manage both the team that works

to develop skills they may not have. They can

into better quality of life. And right now, all

from the office as well as the people who work

get involved in local or global projects and

big market players and employers have the

from home. It provides better options for col-

apply for full-time roles. At the South East

opportunity to use digital tools to benefit the

laboration between all employees. Further-

Europe level, the area I manage, Romania is in

entire community. This is not a road you can

more, it also helps set boundaries between

the lead, as in less than a year our adoption of

take alone, especially with these pandemic

work and home, in order to avoid this overlap

this platform has reached 78 percent, accord-

challenges we are all facing.”

between free time and working hours.”

ing to the latest report.”

By Aurel Constantin

www.business-review.eu Business Review | April 2021 May 2016

WORKING COVER ROMANIA STORY 14 25

DOINA FILIP, ORANGE ROMANIA

ANTONIU PANAIT, VASTINT

GEORGIANA ANDREI, REGINA MARIA

“Wellbeing programmes can no longer be

“In order to safeguard employee health,

“Over the past year, we have been less con-

developed successfully and with added value

fresh air is important, and so is the height

cerned with prevention and have only seen

by the compensation and benefits team

of rooms, which should ensure a large

a doctor when we really needed to. I saw

alone. I believe that mixed teams are better

volume of air. Buildings in our portfolio

a study that found that there were 40,000

to co-create such programmes successfully.

have a standard of 3 metres of free space

fewer cancer diagnoses in Romania in 2020.

The development strategy for wellbeing pro-

between the floor and the false ceiling.

This means that there are at least 40,000

grammes is based on three blocks. The first is

We’ve also identified the points where there

people out there who don’t know that they

data, the second is in-depth research carried

are high levels of human contact in our

are sick. As a result, we have seen companies

out by HR people, and the third is employee

buildings in order to reduce virus transmis-

putting more emphasis on prevention and

feedback. It is important to have direct

sion risk. In addition to nebulisation, we have

trying to raise awareness about it, as well as

discussions with all team members, because

also applied materials that minimise trans-

introducing health screening programmes for

they are colleagues, not just employees.”

mission.”

their employees.”

IRENA MOOZOVA, DIRECTOR FOR EQUALITY AND UNION CITIZENSHIP AT THE EUROPEAN COMMISSION

ADRIAN DICA, VERTIV

CRISTINA PATROESCU, ADECCO

“Emails are problematic when working from

“Organisations should start looking into the

home. Today, many employees are develop-

post-pandemic era of work, and keep a few

“The workforce of tomorrow is expecting

ing a phobia of emails. We often find our-

aspects in mind in the process.

more from employers in terms of inclusion

selves unable to finish a task because we need

One is the business strategy, finding out

and fairness, and pay transparency is good

to respond to countless emails. It is therefore

what they can do to mobilise the entire or-

for business. Companies that will adopt these

important to decide what is relevant and

ganisation to achieve certain goals.

measures will be in a good position to attract

what can wait. At the organisational level, we

Then come leadership teams, which must

top talents and be leaders of the future. I’ll

should focus on better ways to plan emails,

give employees autonomy, but make sure

also stress that progress in terms of gender

notifications. A very good solution is to have

they don’t lose control. Third is the culture

equality is a joint responsibility. To generate

training sessions of 1-2 hours every 6 months

of wellbeing, which can make people who

change and speed up progress, we must work

for employees to learn how to manage these

are working from home feel cared for and

together.”

aspects.”

appreciated.”

www.business-review.eu Business Review | April 2021

26 HR

Workactions driving optimism and creativity as pandemic continues The first digital nomad village in Europe opened on the tiny volcanic island of Madeira, one of the two autonomous regions of Portugal. Digital Nomads Madeira launched on February 1 and it aims to attract digital nomads – people who travel the world while they work remotely. The project has been developed by the Regional Government of Madeira, through Startup Madeira, and with the help of a digital nomad consultant.

By Romanita Oprea

Iunieta Sandu, NO.MAD Talks

T

Thomas Kolster, Mr Goodvertising

he pandemic and the drastic restric-

online sessions. Of course, they need to make

they were a bit nervous at first, they were

tions imposed by most countries have

sure that proper safety measures are in place.

surprised to see that productivity actually

forced people to change the way they

“With the increasing burden and boredom

increased by 10 percent. Their approach

interact and behave and, ultimately, the way

of working from home and the consistent

hasn’t changed much, as they were already

they work and feel about their workplace,

anxiety and stress around job security, some

open to the idea of having employees work

their job, and themselves. Once restrictions

millennials and post-millennials are willing

from home once in a while. Now, they believe

are lifted in some countries and areas, people

to take workcations in the hills, a farmhouse

that employees can be given more freedom

will be able to take remote working to another

or even move to the outskirts of a city for

to choose where they want to work, as they

level, which has led to the term “workaction”

some time, to take a break from their home

know best what helps their productivity. “The

gaining more and more popularity and even

office and daily routine,” writes livemint.

pandemic has truly changed the way we see

being used as the newest HR tool. Not only

com. According to HR Technologist, worka-

traditional offices. I’ve seen a lot of compa-

do employees prefer to work from different

tions have emerged as a popular engagement

nies adopting the hybrid approach to working

locations than their homes (renting a place

strategy for organisations in the US and

rather than going back to the office-only ap-

in another city or country, in the middle of

Europe as collaboration tools, while advance-

proach. While some are still the most produc-

nature, or even in cities with lower rates of in-

ments in workplace productivity technologies

tive at the office, some are really productive

fection), but HR teams in companies are also

have made it easier for employees to stay in

in the comfort of their own home. As long as

looking at it as a new wellbeing tool. By taking

the loop on work while enjoying time off in

there’s balance, the hybrid approach could

time away from overly-used spaces at home

remote locales.

be beneficial to some companies,” Teletin

or the surrounding areas, employees become

explained. So far at Grapefruit, no employees

more productive, efficient, and creative.

MORE THAN AN HR TOOL

have asked for a workcation. But if a request

Moreover, companies could also send groups

According to Anca Teletin, chief operations

were to come from an employee, Teletin

of employees on workactions together, result-

officer at Grapefruit, once the whole team

states that their approach would be as open as

ing in better brainstorming and ideas than

began working from home, even though

usual. “We’ve always been flexible and under-

www.business-review.eu Business Review | April 2021 May 2016

COVER STORY HR 27 14

standing with our colleagues. From flexible

Creator and NO.MAD Talks Founder, recently

here. When you do business, you have to

working hours for parents to monthly WFH

returned from a productive workaction in

travel. I do see myself as a Dane, a European,

days (before the pandemic), we always sought

Romania. She has been working as a free-

and if the situation allows me to travel to

ways to make our employees’ work environ-

lancer for four years now and, during all this

certain countries where I do have business

ment more enjoyable and flexible. Therefore,

time, she has created a habit of being able to

interests that I can combine with a little bit of

work from different spaces, as

private relaxation, then I would definitely go,”

well as different countries and

Thomas said.

cities. At the end of February, she

Travelling turned out to be a very good

went to Casa Domestic, a cozy

decision, as it brought him inspiration and

house designed for people who

made him happy to be around people and

want a change of vibe while they

meet new ones. “We’ve all been through

continue to work. The house is

challenging times, and we haven’t been able

located in Vistea de Jos, a small

to connect with new people. It was an op-

village near the town of Fagaras.

portunity for me to exercise more. I was stuck

“For me personally it was a blast

in Europe during the winter and wasn’t able

– it felt so refreshing to forget

to get too much sun, so now I feel refreshed

about the traffic noise, the smell

and inspired, and extremely happy to be able

of the city, and all the flood of

to continue to do business for South Africa,

news and information online.

which is crucial for the local economy,” added

I had much more focus there. I

the Goodvertising and Hero Trap writer.

chose the location with the help

Moreover, he agrees with Cezar Dumitru’s

we will keep an open mind towards workca-

of a friend, who made this recommendation.

opinion that workactions can become an

tions as well, but we’ll wait until we receive

I plan to go work in a new place or city every

important trend in the future. While in South

this type of request from our employees,”

month, even if just for a few days. Whenever

Africa, he met people from many sectors

added the Grapefruit representative.

I do this, I feel more creative and productive

including banking, insurance or advertising.,

and I always come home with more ideas and

also in workactions. “It’s a good way to show

travel bloggers in Romania – Imperator Travel

renewed energy. When I change my work-

that you treasure your employees, to give

– who also has a background of working in

place, motivation comes faster. Of course,

them renewed energy. It’s a very difficult time

multinationals in roles that involved a lot

I also hope to travel and work abroad,” said

for all of us and people don’t need to be in an

of travelling and remote working, believes

Iunieta.

Cezar Dumitru, one of the most influential

that workactions are not necessarily an HR

Some people may choose

tool, but a health tool. “Ideally, a healthy

to go on workactions in other

environment should be a mix of face-to-face

countries, as did Thomas Kolster

interactions (which obviously help a lot) and

recently by going to South Africa.

away time, obviously when the nature of

He said he’d always had a special

the business makes this possible. This is a

relationship with South Africa,

worldwide trend and Romania is not exclud-

as it’s the place where he wrote

ed. In some industries like creative or IT, the

his first book, which brought him

trend started before the pandemic, but the

international recognition in the

pandemic forced even companies that had

advertising world – Goodvertis-

considered this practice a no-no to take it into

ing. “I have colleagues who are

consideration, even for the post-pandemic

from here and quite a long his-

world. After this year of work-aways and the

tory with the place. And for me,

advent of high-speed 5G internet networks,

this time around was combining

the workplace of the future will be a mix of

a couple of business meetings,

working from home and working from office.

catching up with colleagues, as

At the end of the day, there are significant

well as having the opportunity

cost savings involved, especially in terms

to relax. Before deciding to come here I first

office every day; it’s a great opportunity for

of space rentals and business travel,” Cezar

read some recent news, then I checked with

employees, as long as they do it safely, and

Dumitru explained.

the hospitals here and obviously looked at the

obviously they must show respect for their

pandemic rates and the lockdown situation

own country by following rules and regula-

PERSONAL EXPERIENCES

in the country. They were all considerations

tions, and do the same in the countries they

Iunieta Sandu, Freelance PR & Content

that I was thinking of when I was went down

visit,” Thomas added.

www.business-review.eu Business Review | April 2021

28 ENTREPRENEURSHIP

In the age of remote work, location still matters for startups In the year since the coronavirus pandemic has taken the world by storm, remote work has become mainstream for office-based employees in large cities, with the comfort of their homes becoming more important than the flashy facilities of modern office spaces.

But location still matters for entrepreneurs trying to build up their startups, find new talent, and access a large pool of potential customers.

By Ovidiu Posirca can incentivise founders to set up base here?

These factors are especially relevant considering that most EU countries have turned entrepreneurial attractiveness into a national strategy (the Baltics, France and Germany, Iberian, and Scandinavian countries), with Croatia even replicating the Estonian eresidency to attract ‘work from anywhere’ freelancers and entrepreneurs,” Paltineanu tells BR. He adds that Romania’s IT skills, good quality-cost ratio, and the relatively untapped potential demand in various verticals are well-known, but while they are all necessary factors, they are not sufficient to ensure the attractiveness of a jurisdiction in a highly competitive world.

For instance, UiPath, the robotic process automation (RPA) startup valued at USD 25 billion, was founded in Bucharest back in 2005 as a 10-people team. The city continues to attract people looking for higher pay and Bucharest has a strong edge as a university and research hub with campuses in all fields

better job opportunities. Nearly a quarter of SMEs and large companies are in the Bucha-

B

Romanian capital is the main startup hub,

vanced ecosystem for entrepreneurs compris-

business centres provide certain advan-

while Cluj-Napoca and Timisoara (both in

ing a community of angel investors, accelera-

tages in finding partners, collaborators, and

the west of the country) are trailing behind,

tion programmes, venture capital, and private

avenues for growth, and that fits the profile

according to data from romanianstartups.

equity funds, including corporate-backed

of startups, says Innovation Labs co-founder

com. The portal has 322 startups registered in

entrepreneurial programmes. Cluj-Napoca

Razvan Rughinis. Depending on the business

Bucharest, while 80 are based in Cluj-Napoca

has also built a strong profile as a destination

niche, proximity to users and customers may

and 29 in Timisoara.

for tech-oriented startups.

also be a factor.

rest-Ilfov area, whose GDP stands at more

ucharest and large regional cities in

of I H C, a group that invests in VCs and early-

that EUR 55 billion, according to Eurostat, the

Romania are the most popular loca-

stage startups.

statistics office of the EU.

tions for launching a startup. The

For instance, Bucharest has the most ad-

“Bucharest is a cool city for an expat or a

Cities that are university hubs and vibrant

“Bucharest has clearly become a go-to city

BUCHAREST WANTS YOUR STARTUP

digital nomad, but is it sufficiently friendly to

for entrepreneurs, despite some lags in its

Location absolutely matters for a startup, be-

entrepreneurs from the regulatory, judicial,

evolution. I think the most important area

lieves Ciprian Paltineanu, managing partner

accounting, and fiscal standpoints that it

where improvement should accelerate is

www.business-review.eu Business Review | April 2021 May 2016

ENTREPRENEURSHIP COVER STORY 14 29

access to data, both as open data and as ano-

sized firms (SMEs). The state aid schemes are

moving in sync with innovation, with great

nymised information, from public authorities

financed from EU sources and SMEs can use

care not to stunt it, while of course ensuring

and institutions. It has a strong edge as a uni-

the money for working capital and invest-

stability; the legal system is pro-business,

versity and research hub with campuses in all

ments. However, the third support measure

with special focus on reducing red tape

fields, as well as a strong business centre that

– focusing on investments – was frozen due to

and supporting SMEs in particular; on the

energises a vibrant innovation ecosystem.

corruption allegations, while from the second

accounting and fiscal side, small businesses

measure,

report accounts and file taxes mostly online,

which sup-

on an expedited process with benefit of the

plied work-

doubt as the driving concept; last but not

ing capital,

least, the tax advantages for funding and

only a little

angel investing provide a great incentive for

over 3,000

smart private money to fund innovation and

of the 16,726

growth,” says the managing director of I H C.

accepted

In Bucharest, mayor Nicusor Dan pledged

firms got

to create an entrepreneurial culture among

the money.

young people living in the city and to con-

Meanwhile, PM

vince young entrepreneurs from other cities to start their companies here.

Florin Citu said that the entrepre-

EUROPE COMMANDS EMERGING STARTUP ECOSYSTEM

neur was

Bucharest has been acknowledged as one of

“a hero”

the emerging global ecosystems, ahead of cit-

and that his

ies like Prague, Marseille, and Luxembourg.

govern-

The Romanian capital got a score of 8 out of

ment aimed

10 for performance, which counts the valua-

to remove

tions and the overall success of entrepreneurs

The city offers strong connectivity and high

the red tape that hampers the development

availability of qualified workforce, particu-

of the private sector. The PM suggested that

larly in technology,” Runghinis tells BR.

Romania needs more entrepreneurs with the

countries and USD 348 billion in Ecosystem

courage to start from scratch if their company

Value. Furthermore, Europe is the leading

Iasi, Cluj-Napoca, and Bucharest have been ranked among the top 10 tech cities in

goes bust.

Europe based on cost-effectiveness, accord-

“We

ing to report jointly published by fDi Intel-

want

ligence and TNW. Bucharest is also among

them to be

the Top 100 emerging ecosystems tracked by

encouraged

Startup Genome.

to grow.

The capital city champions the creation

in the Startup Genome ranking.

The Emerging Ecosystems represent 49

This is the

of new companies in the country. Some 1,291

culture that

limited liability companies (SRLs) were regis-

we want

tered in the 12 months to January 2021, up 11

to build,”

percent year-on-year, according to data from

said the PM

the National Trade Registry Office (ONRC).

during a conference

STARTUPS COPED ON THEIR OWN IN PANDEMIC ECONOMY

held by

Romania has not implemented any sup-

Group.

port schemes for early-stage startups that

IMPETUM Paltine-

were seeking growth when the pandemic

anu adds that Bucharest – and Romania

continent for emerging ecosystems, with

emerged. Three support measures with a

as a whole – would need to replicate best

38 cities making the list, followed by North

combined budget of more than EUR 1 billion

practices from the UK, which is a role model

America with 32, while the Asia-Pacific

were launched by the government to prop up

for supporting entrepreneurship in a sustain-

region is third with 22, according to the global

independent workers and small and medium-

able manner. “In the UK, regulation is always

report.

www.business-review.eu Business Review | April 2021

30 ENTREPRENEURSHIP

Crypto boom may fuel new investments in startups As the market capitalisation of cryptocurrencies soared tenfold to USD 1.7 billion in just one year, entrepreneurs are looking to bank on the increased investment drive in the crypto space. The accelerated growth of digital currencies put the spotlight back on blockchain, the technology behind Bitcoin, which boasts strong security and flexibility and can be useful in sectors ranging from healthcare to logistics.

By Ovidiu Posirca

More business opportunities will emerge as blockchain, the technology behind Bitcoin, is increasingly deployed by startups

T

he last crypto boom ended in early

ICO FUNDING IS OUT, WELCOME IEO

a cryptocurrency using an IEO, but first the

2018, when the market climbed to

In 2017, the idea was that an ICO could re-

entrepreneur should think very carefully

USD 827 billion, after which its value

place angel and venture capital investments

if issuing a coin really makes sense, if the

fell to a low of USD 107 billion. Back then,

in startups, according to Sebastian Cochi-

exchange fees paid to list the coin are really

startups could use raise crypto funds through

nescu, founder & CEO of TailPath, a startup

worth it, and if they are properly prepared

Initial Coin Offerings (ICO). This was a risky

enabling the secure tracking of goods using

for the legal implications that come with it,”

investment for individuals and some of the

blockchain technology.

Cochinescu tells BR.

project teams that raised funds went missing.

“Instead, what we witnessed was a wave

By the first half of 2018, 30 percent of

Nowadays, startups can raise funds by selling

of scams and Ponzi schemes that had a bad

top ICOs launched in 2017 had lost all their

tokens through an Initial Exchange Offering

impact on the image of the blockchain envi-

value, while 86 percent of them were below

(IEO), which is managed by an exchange.

ronment. Nowadays it is possible to launch

their listing price, according to an analysis by

www.business-review.eu Business Review | April 2021 May 2016

ENTREPRENEURSHIP COVER STORY 14 31

professional services firm EY. Moreover, little

should aim to solve a real problem in order to

over 10 percent of ICO-founded startups were

get paying customers as soon as possible.

able to develop an early-stage product in the

“If the blockchain component helps the

“There is a gold rush in the NFT/unique digital assets market; artists and creatives of all types are jumping at this opportunity to

entrepreneur achieve this, then it may make

use the blockchain in order to promote their

This year, the crypto boom is attracting

sense to think about the crypto infrastruc-

brand, engage fans, and generate additional

entrepreneurs bringing various ideas and use

ture and how it could be used,” he explains.

revenues,” says Paltineanu.

first year after raising funds.

cases for blockchain technology and digital

Increasing the adoption of blockchain

The NFT can be used to check the owner-

assets, explains Vlad Centea, the co-founder

solutions will expand business opportunities,

ship of a virtual item on the blockchain. For

and CEO of Morfin, a platform for gamified

just like e-commerce took off as more people

instance, a Nyan cat GIF, a famous internet

token issuing programmes that can be used

started to use the internet, adds Centea of

meme, was sold for more than half a million

for employee engagement and education.

Morfin.

dollars because it was NFT-enabled. In recent

“There are a lot of use cases for block-

weeks, French NFT startup Arianee, which

ated by the crypto assets inflation. However,

chains that businesses could use, from faster

certifies ownership of virtual luxury goods,

most investors have already learned that you

and more sophisticated (cross-border) pay-

raised USD 9 million from investors. Fantasy

cannot just use blockchain for everything,

ments to tokenization – the digital repre-

football platform Sorare, which has tradable

and that mainstream adoption has many

sentation of real assets on the blockchain –,

NFT-based digital cards of football players,

big obstacles to overcome. So, most of these

supply chain use cases, identity use cases,

got EUR 40 million from VC investors.

“There is also an excess of money gener-

ideas (or startups) will not get funding.

and so on,” says Centea.

“Blockchain technologies and NFTs

“Crypto inves-

It's not 2017 anymore,” Centea

and all these kinds of things are

tors today

tells BR.

not supposed to be main-

have

From a pricing

stream,” said Arianee

perspective, excess

co-founder Fred-

market liquidity in

eric Montagnon, as

a low-yield envi-

quoted by Sifted.eu.

ronment coupled

“In the same way

with the overall

that the very core

increasing volatil-

layers of the internet

ity and uncertainty

are not mainstream.”

has fueled the recent

As for Romanian

crypto bull market. evolution of cryptocurrencies, I strongly believe that we are only

entrepreneurs, there

the

“Irrespective of the

are those who supply

highest risk

such crypto technologies and

appetite, which is the ideal profile of a startup investor.

their attached services, and those who

scratching the surface of blockchain tech-

The era of issuing tokens without a purpose

employ them to digitally transform their

nology. The near future will see more use

is over, so making any kind of public offering

businesses.

cases for digital assets on public or private

will be subject to current crowdfunding legis-

“Technology suppliers will benefit first

blockchains, ranging from financial services,

lation and will not be too different from what

(and perhaps most) from the growing interest

marketplaces, and payments infrastructure

we can see on platforms such as Seedrs (for

in employing crypto technologies. First, large

to tax collection and civic activities,” Ciprian

equity/security token offerings) or Kickstarter

suppliers will find it worthwhile to expand

Paltineanu, managing partner of I H C, a

(for reward/utility tokens),” the co-founder of

their hyper-data centers further and provide

group investing in VCs and early-stage start-

Morfin adds.

dedicated nodes for processing this kind

ups, tells BR.

Meanwhile, Paltineanu of I H C advises

of workload. Second, mature startups will

Romanian startups to focus on the B2B field

continue to branch into this area, while new

HOW CAN ROMANIAN STARTUPS TAP INTO THE BOOMING CRYPTO FIELD?

and work on various novel use cases for

ones will continue to appear, providing ser-

blockchain-based technologies. These may

vices over the ever-expanding infrastructure.

Entrepreneurs launching startups that use

range from financial infrastructures to supply

Third, we will start to see a refinement and

blockchain technology and crypto assets are

chain and industries that require fast, secure,

clarification of use cases where blockchain

facing the same set of challenges as their

traceable, and immutable transactions.

may be the way to go, while for other use cases, there will be a reinforcement of the

peers in other industries. Scaling the business, attracting users, navigating through

NFT COMING IN HOT

fact that current/traditional practices are, in

daily challenges, and looking for fresh fund-

Entrepreneurs could also explore the poten-

fact, still the best choice,” concludes George

ing are all at the top of founders’ minds.

tial of non-fungible tokens (NFTs) to expand

Sarbu, community manager at Innovation

their use beyond collectibles.

Labs.

Cochinescu of TailPath says that a startup

www.business-review.eu Business Review | April 2021

32 TRENDS

Primetime game-tainment – a trend that’s here to stay and grow Wunderman Thompson, a WPP agency, recently launched its annual Future 100 report, lifting the lid on the trends expected to shape the coming year. The report was developed by Wunderman Thompson Intelligence, the agency’s futures think tank and innovation unit.

These wide-ranging trends highlight creative innovations which are set to go mainstream, along with shifts in consumer behaviour, across 10 different sectors.

By Romanita Oprea It became obvious to her quite early that gaming would be the new entertainment source, and she thinks the rise of e-sports and YouTube stardom has only helped brands acknowledge the opportunities this channel offers. And it only took a few brave visionaries taking the risk and using games and gamification to launch a whole new way of doing things in the “new” marketing.

“Primetime game-tainment was around back in the day through Wheel of Fortune or similar shows on TV. But that was the old format. Today’s primetime isn’t bounded by time slots any longer, it’s all about the internet, full time interaction, games for entertainment, and gamification for motivation. And a Cristina Blanaru, Code Name

T

whole galaxy of options and opportunities for consumers to find the products best suited to them and for brands to reach the entire world

he entertainment industry is turning

are elevating game-tainment into a primetime

in a very detailed and highly targeted way.

its attention to game-tainment, a new

attraction.

The concept has existed for a while, and there

One may wonder though: how will this

are plenty of people who haven’t watched TV

record numbers of players and spectators.

trend grow and evolve and why? According to

for a long time but who have a selection of on-

The Sims 4 game, for example, hit a peak of

Cristina Blanaru, business and communica-

line entertainment consisting of Twitch gam-

almost 10 million monthly active users in the

tion specialist at Code Name and founder of

ing broadcasts and YouTube walkthroughs

second quarter of 2020, with 2.5 million join-

AdHugger.net, it was high time this became

or streaming anything and everything on one

ing in May and June. On July 1, 2020, more

a trend. “We’ve had game-tainment for at

platform or another. The only thing that re-

than 160,000 viewers tuned in to watch popu-

least 15 years, since the time when it was only

mains to be done is to update the dictionary,”

lar gamer Ninja play Fortnite on YouTube.

appreciated by a handful of nerds staying up

added the Code Name representative.

Moreover, as Wunderman Thompson’s report

at night to kill pixel-made monsters. That’s

shows, gaming has been steadily growing in

when the very raw draft of game-tainment

Daescu Bortun Olteanu, though games were

popularity and influence over the past few

first appeared. There were star players who

already extremely popular a year ago, the

years, with far-reaching impact: spurring a

became influencers in a nerdy world. Then

pandemic has accelerated the status of gam-

new league of game-fluencers, informing

nerds and gaming came into fashion, the tabu

ing as the king of world entertainment: video

luxury retail, serving as an outlet for wander-

around them vanished, interest in games

games have become the most intensely "con-

lust and wellness, and even as a platform for

increased, and now we’re seeing gaming on

sumed" entertainment products in the world,

activism. But now, with playership sky-

stage, in the spotlight, as opposed to the old

with the gaming industry surpassing in value

rocketing and Hollywood production on an

days’ basements and rooms with the curtains

the music and sports industries combined on

indefinite hiatus, new big brand investments

pulled down,” said Cristina Blanaru.

certain markets (such as North America). But

breed of cinema. Gaming is drawing

According to Ioan Daescu, PR director at

www.business-review.eu Business Review | April 2021 May 2016

COVERTRENDS STORY 33 14

as he points out, what will make video games

Blanaru argued. Ioan Daescu believes that

win in the long term is the fact that they are

the video game scene is booming in Romania,

in which companies are communicating in

no longer simple games, but they’ve become

with big gaming festivals such as Bucharest

this field and how important is the input of a

platforms where you can watch concerts of

Gaming Week and Gaming Marathon, esports

specialised communication agency? “Game-

your favourite artists or enjoy film festivals.

events like the Romanian eSports League or

tainment can be seen as a part of the ‘fluffy’

Games like Fortnite are already competing

Digital Crusade, local video games studios

side (communication) or part of the heavy

with major streaming platforms. Last year,

that are contributing to developing big in-

lifting (the hardcore business strategy). Yes,

Fornite hosted virtual concerts by Travis Scott

ternational titles, and many gaming content

you can make some interactive games and

and DJ Marshmello and the trailer for Christo-

creators who are building big communities.

call them game-tainment, cross your fingers

pher Nolan's "Tenet" premiered on this plat-

It’s therefore not surprising that in February,

and hope that a game with basic features and

form. In February, we saw another premiere:

an UK-based firm ranked Bucharest third

a little branding will deliver for you on the

Fornite was the first game to offer the com-

among the best cities in the world for gamers,

business side. And for that, any decent digital

munity a film festival, which screened some

after Austin,

of the best animated short films of the recent

Texas, and

years, Oscar-nominated or BAFTA Awards

Seoul, South

titles. For filmmakers, it is a huge opportunity

Korea. The

because these films would have had a very

new gaming

hard time reaching such a large audience.

era means

“On the other hand, non-gaming platforms

But how is this trend changing the manner

that video

also want to create bridges between the me-

games are

diums. The Tribeca Film Festival will include

turning into

video games in the line-up of future editions

ecosystems

and it will launch a category to award the

for people

best releases of the year, thus reiterating that

to play, have

video games are artistic products. Therefore,

fun, and

we can say that video games are no longer just

be socially

about gameplay; they are extremely culturally

active.

complex media, where people enter, make

“The

friends, form communities, enjoy concerts

growing

and movies, maybe even set up business

exposure

meetings. All on platforms on which they also

of the in-

play. I believe that games will be increasingly

dustry and video games also means a greater

agency can deliver a relatively well-made

used as social links, they will bring people

exposure and visibility for content creators,

game and a good PR agency will make some

closer together and many will be launched

the gaming influencers. In recent years, they

noise. But businesses need the buzz to get

in the future with this goal of improving and

have become top sources of information and

translated into sales,” said Cristina Blanaru.

encouraging social experiences between fami-

entertainment as well as role models for new

Smart companies also use games, but

lies and friends,” Ioan Daescu added.

generations, as young people are moving

that’s because they have gamification embed-

away from traditional media like TV. This

ded within their marketing strategies and

HOW WILL IT PLAY OUT IN ROMANIA?

exposure will certainly encourage creators

already use at least one form of gaming/

Bringing it closer to home, Cristina Blanaru

to provide quality content for their commu-

playing to maintain the interest and loyalty

stated that as far as she knew, Romania has

nities, promoting healthy values. We need

of their consumers. Furthermore, in Daescu’s

never lacked gamers, people with an appetite

to validate and support creators who stand

opinion, gaming is the new frontier of brand

for varied types of content and entertain-

out not only through an overflow of energy

communication. The gaming ecosystem is

ment or internet literate people. Therefore,

and great gaming skills, but also through

complex and complicated for brands and

primetime game-tainment is bound to be on

proper discourse, a good grasp of the videos

there are countless opportunities. The role of

the rise soon, as it is already nearly there. “It

they make and, last but not least, a positive

a specialised agency is to guide and to "edu-

just needs to become a little more popular.

attitude. There are many names that deserve

cate" brands in communicating as naturally as

And that will happen when ad budgets are

more recognition and visibility, who can

possible with people who play video games,

redirected with a brave push prioritising the

become role models for generations of young

a very demanding audience. “One concrete

new channels rather than the old (digital

people, using their platforms to create safe

thing that I see changing in the near future is

versus analogue) and with a proper segmenta-

spaces for entertainment and dialogue about

that brands will no longer use the term ‘gam-

tion of targets resulting in tailored messages.

their shared passion: gaming,” said the Dae-

ers’ when talking to and about this audience,”

If one does that, success will definitely come,”

scu Bortun Olteanu representative.

Daescu concluded.

www.business-review.eu Business Review | April 2021

34 DIGITAL MARKETING

Influencer Marketing still to be mastered by Romanian brands One of the best-known Romanian bloggers, Cristian China-Birta, recently launched his first book providing brands with valuable insights into approaching and working with influencers, as well as advice to better understand them. The book taps into a market which is growing rapidly in Romania and has the potential to change the way we see digital campaigns.

By Romanita Oprea SocialPedia and content manager at SavaBros, says the approach should be different.

“I believe that some brands could achieve certain marketing and business objectives if they chose to include content creators in their strategies,” Cornovac explained, adding that it all starts with the strategy, the objectives, the target, the budgets available in the short and medium term, etc. And if it makes sense to bring content creators along, it should be done after a brand and an image has been created, to have something to promote. “No brand should work with influencers just because it’s a trend or because it’s what the competition is doing. Those reasons cannot form the basis of a relevant collaboration,” she argued.

Alexandra Ion, Golin

T

Sabina Cornovac, SocialPedia

“If you start seeing yourself or your close friends as the “target audience,” you might approach things differently, in a way that’s

he communication industry has a

sage, in a natural and unique way, and that

better for your brand. Find influencers

fast-changing mood, and so does in-

they are there to engage and interact with

with whom you can build a real, long-term

fluencer marketing, so we must start

the community, no matter the questions that

relationship, one that’s guided by the same

come up,” added Alexandra Ion.

rules as a true friendship. Does it match your

understanding this field better and deepen our knowledge if we want to make sure

But when should a brand use influencers

life philosophy? Is it relevant for you? Does

campaigns we work on have a good success

and when shouldn’t it? “Every brand has to

it spark joy? Does it make you laugh? Is it

rate. According to Golin’s digital manager,

choose the right communication channels

entertaining? These are some of the questions

Alexandra Ion, marketers are starting to focus

for its messages as long as they are aligned

that should get a positive answer. Just like in a

more on quality and results rather than brand

to its business objectives. In other words,

friendship, if you find someone that helps you

awareness alone. They’re taking a long term

you should choose to work with influencers

grow, go for it,” says Simina Zidaru, creative

approach and seeking ways to build partner-

whenever they are able pass your message

director at Tribal Worldwide Romania.

ships that bring great benefits to both sides.

along to your relevant audience to achieve

They view influencers as partners and not

your business objective. However, there are

TIMING AND STRATEGY

only as communication channels, and this is

other things to consider before starting an

Influencer marketing is an important part of

one of the biggest changes so far. “Another

influencer campaign, such as a solid social

any brand’s marketing strategy, so in Alexan-

important aspect is their attention to creativ-

media presence and a large audience of

dra Ion’s opinion, there isn’t a good or a bad

ity and community skills. When you have a

engaged users,” said Cristian Manafu, social

moment to start doing it. Better yet, Golin’s

partnership with an influencer, they are your

media trainer & consultant and managing

digital manager believes that brands should

brand’s voice in their community, so you want

partner at Evensys.

think more about how they should start col-

to make sure that they deliver the right mes-

In turn, Sabina Cornovac, the owner of

laborating with influencers rather than when,

www.business-review.eu Business Review | April 2021 May 2016

DIGITALCOVER MARKETING STORY 14 35

about who they want to collaborate with, and

right partnership, the brand will see results

constantly communicate what may bother

why particular influencers may be relevant

on all layers in the long term. Because they

you or what you don’t like and encourage

for their brand. “But if we must talk about

basically vouch for what your brand does.

your partner to do the same,” Sabina Corno-

when, then I have to say it’s when the brand

And this is huge because somehow, the in-

vac concluded.

understands what influencer marketing is

fluencer becomes part of your brand’s DNA,”

about and only when it has a good strategy

Zidaru explained.

CHANGE IN PERCEPTION

in place. There are a few aspects brands must

“The most important thing when a compa-

take into account when it comes to influencer

ny decides to work with influencers is picking

tives have changed in recent years when it

marketing. First, seek quality, not quantity for

the right ones. And by that I mean those who

comes to their interactions with influencers

key metrics. Of course, you want your brands’

are relevant to the company's audience, have

in Romania, according to Cristian Manafu,

As for how much marketers' perspec-

there are four types of companies: those who have never worked with influencers; those who tried once and have never gone back; those who refuse to do so for various reasons; and those who actively work with them. This is a global status quo.

“Taking all of these into account, I think more and more commessage to reach as many people as possible,

an engaged community, and are recognised as

panies are embracing influencer marketing

but if you want your brand to be noticed and

experts (they have a long-running experience

as they have more opportunities than ever.

remembered, you need the right partners to

in that field),” said Cristian Manafu.

The niches are getting strong, with micro and

help you communicate. So it’s better to look

Cristian China-Birta points to a very clear

nano influencers are being considered. So

at the quality of their content and community

definition of the objective of an influencer

interactions rather than at how big their audi-

campaign. He says it should be as specific and

ence is,” Alexandra Ion argued.

precise as possible, and then “translated”

thinks there is still a lot of misunderstanding

there's a long way to go,” said Manafu.

Along similar lines, Cristian China-Birta

into influencers’ language in the brief. “Many

between brands and influencers, especially

not only campaign-based collaborations.

campaigns go wrong from the beginning

in terms of expectations. According to the

When you have a long-term partnership with

due to the fact that the brand wanted to say

blogger, there are still influencers who believe

an influencer or content creator, you will

one thing, while the influencers understood

brands are there to give them money because

develop a win-win relationship and you will

something else,” notes Cristian China-Birta.

they are cute. Just as how there are marketers

see better results over time.

In other words, the request may get lost in

that choose to work with influencers because

translation.

they believe it’s trendy. Both attitudes are, of

Moreover, one should aim for long-term,

Meanwhile, Simina Zidaru highlights the importance of creativity. Her advice for brand

At the same time, Sabina Cornovac points

course, wrong.

representatives would be to go against the

to the importance of research. Brand repre-

tide and try new things all the time, create

sentatives should read as many articles as

changed the most over the past few years has

content that only their brand could, find new

possible on the subject, spend as much time

been the communication between specialists

influencers, break into new communities. For

as possible on social media accounts they find

and content creators. "I think people have

example, Tribal has a working process where

interesting and, very importantly, make sure

started to look beyond the vanity metrics and

they bring people from the social media

they don’t ignore the voice of communities

understand that, at the end of the day, every-

department and people from the creative de-

and the values of influencers. “At the end of

thing is about money and survival. And that

partment to the same table to brainstorm new

the day, if you aren’t a good fit, strategy no

isn’t generated only through likes, shares, and

ways of approaching influencer campaigns.

longer matters. Last but not least, bi-direc-

comments. We are always engaged in a learn-

“Because the ground is still fresh, there are

tional communication is the key to success

ing process, and that is a good thing. How and

tons of opportunities on how to use influenc-

in a relationship with any influencer. Try to

when will the market become mature? That

ers in a creative, yet effective way. If it’s the

have a clear brief, ask for constant feedback,

depends only on us,” Cornovac concluded.

In Sabina Cornovac’s opinion, what has

www.business-review.eu Business Review | April 2021

www.business-review.eu

36 SOCIAL Business ReviewENTREPRENEURSHIP | May 2016

COVER STORY 14

Crowdfunding campaigns helping out social entrepreneurs When it comes to taking a startup business from a simple idea to actually making it work, each and every step must be carefully planned. While there’s a lot of money and advice available in tech and other business sectors where startups can rapidly prove their profit potential, social entrepreneurs do not have so many pitching and funding options at their disposal. To support those who want to give part of their profits back to communities, a new crowdfunding platform has arisen: consolid8. Business Review went behind the scenes to find out more about this initiative.

By Oana Vasiliu If you’re interested in the rewards or you want to support a campaign, you can easily do so through the platform. You just create an account, click “buy”, and make a payment.

Each reward will be shipped to you based on the indicative schedule provided by the initiator, after the campaign ends.

“We’ve built this online platform to provide people with a space where they can connect with their community and raise capital to transform an idea into a new project or business. People who create a reward-based crowdfunding campaign also get the first chance to validate their idea on the market, as well as the first precious and enthusiastic customers for their business,” says Catalina Check out consolidat8.ro for more information

Azamfirei-Marcu, co-founder & campaign manager at consolid8.

It was about time that we had a platform

A NEW ENTREPRENEURIAL APPROACH

the initiating team is confident that it is well-

dedicated to social entrepreneurs and the

consolid8 is an instrument providing growth

tailored to the needs of the community and

creative industries, and consolid8’s strength

opportunities via reward-based crowdfund-

that the budget is realistic.

comes from the know-how of the team

ing campaigns designed by the Structural

“Anyone can back a campaign by claiming

behind it, who has helped more than 160

Funds team at www.fonduri-structurale.ro.

rewards offered by entrepreneurs within the

startups and 30 social entrepreneurs over the

They have created a financial hub providing

predetermined campaign deadline. Essen-

past three years.

support services to entrepreneurs, and each

tially, initiators are selling their services/prod-

“We got to experience their financing

consolid8 visitor can be a campaign initiator,

ucts in advance. We apply the 'all-or-nothing’

needs first-hand, and we know that crowd-

a campaign backer or both.

principle – if the campaign reaches its funding

funding is a very good solution for social

Any social and/or creative entrepreneur

goal before the deadline, the initiator receives

entrepreneurs and creatives. We know they

who has an idea for a new service or product

all the funds raised, then produces and sends

have a great need to test out their ideas and

for their community can create an account

the rewards to its backers. If the funding goal

raise capital and that there was little room

on the platform and launch a campaign. They

is not met on time, backers get reimbursed

on the market for them. consolid8 is the

will get help in refining their idea and design-

for their contributions and the rewards don’t

platform that helps them launch or grow their

ing the campaign, selecting the best rewards,

get delivered. This is a great way of validating

ideas,” Catalina adds.

finding the best ways to communicate with

new products and services with their target

their community, plan budgets, etc. The

audiences,” explains Raluca Preluca, co-

appears to be at the top of the list, especially

campaign will go live on the platform when

founder & community manager at consolid8.

because the revenue that comes out of a

In terms of challenges, the business model

www.business-review.eu Business Review | April 2021

SOCIAL ENTREPRENEURSHIP 37

notes, suggesting

looking at their purpose and social impact is

that their pioneering

eye opening. “On the offer side there are also

work refers to this

challenges in better grasping all the possible

aspect, too.

tools that can enable social entrepreneurs and impact investment. We are confident that we

THE ENTREPRENEUR’S OPINION

will be able to play a strong role in developing

OilRight co-founder

Murray, country manager at Ashoka Romania,

Roxana Damaschin-

one of the organisations acting as advisors for

Tecu wanted to

consolidat8.

this emergent market in Romania,” says Ana

“Crowdfunding is definitely one strongest

reward-based crowdfunding platform is mod-

open a social business in Timisoara that

est. “We are looking for partners who want to

would have a positive impact on the environ-

tools available to develop social finance in our

support us in developing this sector because

ment and employ people from vulnerable

country as it builds on the behaviours that

the vivaciousness of the crowdfunding space

groups. The initial investment came from a

many people are already familiar with due to

enables people to step into the entrepreneur-

European programme, and according to the

our social media and online communication

ship role more often and more easily, and

founder, the biggest challenge was purchas-

consumption – supporting and engaging with

there will be long-term benefits across soci-

ing the necessary equipment and setting up

social entrepreneurs with whom they want to

ety,” Catalina Azamfirei-Marcu argues.

the production space. Still, Roxana needed

be associated. So it comes naturally to people,

more support, so she started a crowdfunding

and we are happy to encourage more and

campaign on consolidat8.

more of them to do the same,” she adds.

ALL NEW Unfortunately, the social finance market in

“I heard about consolid8 during a fund-

According to Ana Murray, those who are at

Romania is still in a nascent phase, in terms of

raising webinar for social startups. I was fa-

the beginning of this social entrepreneurial

both demand and supply. “We are currently

miliar with the concept of crowdfunding and

road should believe in themselves and look

working with international partners and the

was happy

European Commission is backing us in devel-

to see such

oping a financing mix that will suit Romania’s

an initiative

needs. Crowdfunding is still new in Romania,

in Romania.

including that for social entrepreneurs, but

I knew it

we are gladly embracing the pioneering mis-

would be

sion in developing awareness and promoting

the right

its benefits through our acceleration pro-

kind of

grammes,” Raluca Preluca says.

funding to

Yet there is huge potential for crowdfund-

support us

ing to accelerate financial inclusion because

in setting up

it can play a very important role in provid-

our social

ing liquidity to entrepreneurs. “We believe

business.

in matching different types of financing

A crowd-

(grants/crowdfunding/credits, etc.) so that

funding

entrepreneurs can choose from a wide array

campaign

of instruments to best suit their business,”

brings you

Raluca adds.

much more than just the funds you raise. It

for support. “There are so many incubators

brings connections, future business opportu-

and accelerators now – such as Ashoka Fellow

are different types of crowdfunding: it can

nities, visibility, and exposure. It reconnects

Pablo Santeufemia’s Bridge for Billions – that

be based on donations, rewards, equity, and

you with old friends and forces you to focus

allow you to develop your ideas in a struc-

lending. For now, given the Romanian regula-

and send a clear message. For us, it also led

tured, matured, knowledgeable way that miti-

tions, only donation, reward, and equity

to new, long-term partnerships,” Roxana

gates the downfalls of feeling overwhelmed

crowdfunding are possible. “At this moment,

explains.

while you’re getting started. At Ashoka, we

Another aspect to consider is that there

connect many social entrepreneurs to pro

crowdfunding is not specifically regulated in Romania. There is a European regulation for

SUPPORTERS’ LEAGUE

bono or low bono resources that enable them

crowdfunding among member states, but it

The turning point that Ashoka Romania tends

to get the mentoring and support they need.

does not apply to national crowdfunding plat-

to observe during workshops is the change of

The social investment toolkit developed by

forms like consolid8. Romania’s crowdfund-

mindset from grants and recipients to capital

our colleague Mark Cheng is also a strong

ing legislation is still in development,” Raluca

and clients. And for classic entrepreneurs,

place to start.”

www.business-review.eu Business Review | April 2021

38 CITY

What’s new in town?

By Oana Vasiliu

With the pandemic still in full swing, the local cultural scene continues to struggle as authorities remain unable to make any predictions that could help cultural operators plan out their events. But some venues are still open, so let’s take a look at what’s happening this month, even though restrictions have been tightened again across the country in an attempt to keep the third wave of infections under control.

Discover Florica Prevenda's new artshow on her mind since the 90s, including issues like communication in the digital world and the self-representation of the human generator and consumer of instant information.

The exhibition presents mixed media on canvas – acrylic, modelling paste, and wood inserts – which it uses to build human geometries of a special chromatic expressiveness.

Until April 17, the public can enjoy “The Show That Never Was” at Anca Poterasu Gallery, with artists Matei Bejenaru, Oana Cosug, Larisa Crunteanu, Sebastian Hosu, Fork Restaurant is situated in Ana Tower

Adelina Ivan, Aurora Kiraly, Iosif Kiraly, and Zoltan Bela.

The group show focuses on the notion of

FOOD & DRINKS

ART

A series of new places have popped up across

Strata Gallery, the newest art gallery in town,

the exhibition art space and its network of

the city, including OTOTO Store (5 Mendeleev

features an exhibition by Darie Dup titled

collective efforts, desires and hopes, setbacks,

Street), The Great Hill winebar (6 Dr Louis

“ALLreadymade”, which will be open to the

and ideals that emerge from it. The artists’

Pasteur Street) and the Fork The Restaurant

public until May 11.

works provide a glimpse into the liminal

sky bar (1C Poligrafiei Blvd).

ALLreadymade is about things that are

space between the artistic laboratory and

already there, things that have probably been

existing critical statements of the art scene.

sells products from independent brands –

done before, as well as about something

The exhibition unveils the artistic process or

Romanian and international – including food

more - something else. Darie Dup's exhibi-

otherwise revisits earlier works by turning

and drinks, cosmetics, books, clothing, and

tion should be seen as a continuation of such

a mirror inward, to the limitations and pos-

more. The story of The Great Hill started with

artistic approaches, as long as the object

sibilities of an art space.

the desire of five important wineries from the

represents the centre of his artworks – both

Dealul Mare wine region to promote some of

the common object as well as the one created

Le Marteau sans maître” exhibition will wel-

the best Romanian wines. The place is also

by the artist in the most unique positions and

come visitors until May 1.

an art gallery. The gourmet restaurant Fork

images.

OTOTO Store is a grocery store that only

Ana Tower is the result of over 15 years of cu-

AnnArt Gallery is hosting “_FLORICA_PRE-

At Nicodim Gallery, the “Stefania Batoeva:

Le Marteau sans maître, or The Masterless Hammer, Batoeva’s third exhibition at

linary journeys and in-depth research of top

VENDA _anonymous”, an exhibition that

Nicodim, is a series of drawings and paintings

gastronomy. Its design is based on a unique

brings together a selection of over 30 paint-

which, like the Pierre Boulez composition

concept that combines traditional Romanian

ings made between 2017 and 2018, in the

and René Char poems that inspired them,

style with the contemporary designs found at

form of an installation. In the series of works

celebrate the journey of a once-emancipated

Balvanyos Resort and Gastrolab, offering an

reunited under the title “Anonymous”, the

psychic dissonance occasionally reined into

unforgettable fine dining experience.

artist explores major themes that have been

harmony.