www.business-review.eu Business Review | September May 2016 2020
COVER STORY TECH 13 14
Tech scaleup ecosystem: Romania versus Poland While still in its infancy and still developing and aspiring to be more like mature ecosystems such as London or Berlin, the tech startup ecosystem in Romania and Poland should be taken into account when looking at the European entrepreneurial scene. By Claudiu Vrinceanu
tal landscape, we should look at the evolution of deals in the next four months. In the tech area, companies seem to be less In the tech area, companies seem to be less affected by the current crisis
T
affected by the current crisis, but it is clear that we are about to see a resettlement of the market. Investment fund managers expect
he first step the Romanian tech
ments in Romania, namely 39 transactions,
that in the near future – though not the very
ecosystem should take is to catch up
with a total value of EUR 29.3 million. By the
near future – founders will try to tell their
to the Polish environment, and we
number of investments, the second most ac-
stories in a different way, addressing risks that
should start with the financing ecosystem.
tive financing vehicle is Gecad Ventures, with
could arise.
Poland and other developed countries have
18 investments, totaling EUR 20.5 million.
It is important that these risks are not kept hidden, but communicated to others and
everything they need: ideas, motivation,
understood.
enthusiasm, world-class engineers, and more
2. FUNDING ROUNDS (1,376 VERSUS 355)
money. But how is Romania doing in terms of
While Poland can boast of 1,376 rounds of
financing for companies with growth poten-
investments, only 355 financing rounds by
3. EXITS (366 VERSUS 116)
tial as compared to Poland?
private investors have been concluded in
The number of exits made by entrepreneurial
Romania in recent years. On the local market,
companies has risen to 366 in Poland is recent
1. INVESTORS (337 VERSUS 97)
eight teams raised financing in Q1 2020
years, while in Romania this number is 116.
While Poland has a total of 337 investors,
and 15 tech startups and scaleups closed or
Two notable exits have taken place lately on
mainly investment funds, only 97 investors
announced deals in Q2 2020 (the first full
the Romanian market. First, the gaming and
are active in Romania today, according to De-
quarter of pandemic times).
software testing company Whyttest, founded
alroom data. For example, the largest invest-
It is difficult to know how long the eco-
in 2014 by entrepreneur Marius Potirniche,
ment fund in Poland is MCI Capital, which
nomic downturn caused by the coronavirus
was acquired by British quality assurance
invests on average between EUR 5 million and
will last, but the amount of venture capital
(QA) service provider Testronic, part of the
EUR 50 million and so far has had 55 rounds
funding for Romanian tech startups during
Catalis group. Second, investment fund Abris
of investment. This investment fund has
the first semester looks satisfying. The level
signed a new investment in Romania, having
invested EUR 544 million in Polish compa-
of investments is comparable with pre-pan-
bought the Romanian branch of Hungar-
nies. Innova Capital is the second largest fund
demic times, but almost all investments had
ian company Eltex for over EUR 5 million,
in Poland, based on the number of transac-
their negotiation roots before March 2020. Is
through a firm belonging to Romanian hold-
tions, with 49 investments, totaling EUR 13.9
the current situation quite as gloomy as the
ing company Green Group, the owner of the
million. For comparison, of the 97 investors,
previous crises for Romanian tech fundrais-
largest integrated recycling park in Southeast
GapMinder is the fund with the most invest-
ing? For a realistic assessment of venture capi-
Europe.
