The Startup Ecosystem of Romania

Having witnessed the remarkable success of UiPath, Romania’s inaugural unicorn, the nation has demonstrated its capability to nurture entrepreneurship and expand into international markets. While the goal is to produce 5 unicorns by 2025 through public strategies, it remains uncertain whether this objective can be met in light of challenging funding conditions.

To further this mission, public initiatives like Start-Up Nation and Startup Plus are promoting entrepreneurship and providing assistance to startups, although there is room for increased public sector engagement in establishing an investment-friendly regulatory framework and enhancing the global visibility of the startup landscape. Improved entrepreneurial education at secondary school level and the implementation of entrepreneurship programs would also be beneficial.

Although pre-seed funding is a persisting challenge, the government is directing resources from the National Recovery and Resilience Plan (PNRR) towards bolstering private equity funds across ecosystems. Additionally, FIX Cluj, the largest incubator program in Romania, extends funding of up to 50,000 Euros to young entrepreneurs. These initiatives are essential, as Romania faces greater difficulty than other EU nations in retaining talent domestically. A cohesive approach between the public and private sectors is necessary to cultivate an entrepreneurial culture within Romania, fostering a climate supportive of risk-taking ventures rather than relying on outsourcing to other countries.

While progress is evident, such as through the ROStartup initiative, a collaborative effort between the public and private sectors resulting in the Romanian Startup Ecosystem White Paper, promising developments are also emerging from burgeoning startup ecosystems like Oradea, where tech startups are uniting under the MakeITOradea initiative.

With robust internet connectivity, a substantial number of accelerators and incubators, and a determined network of entrepreneurs striving for recognition, we are optimistic that Romanian startup ecosystems will soon reach new heights and achieve significant milestones.