Testing the Waters: Why startups should consider Romania’s VC ecosystem
by Loredana Gavrilescu Dobrea
Romania’s VC ecosystem is still in a formative stage, but it’s growing steadily. Since the launch of the first dedicated fund in 2012 by Catalyst Romania, the country has built a small but increasingly active network of investors, funds, and public-backed instruments. While it doesn’t yet rival the maturity of ecosystems in Berlin or Paris, Romania is starting to find its rhythm—particularly in early-stage funding and sector-specific niches like health, fintech, defense, and cybersecurity.
For startup founders, especially those with limited access to capital or looking to explore Europe without jumping directly into the deep end, Romania offers a relatively low-friction environment to build and validate. That said, it’s not without challenges: the ecosystem is fragmented, not all VCs are active operators, and many startups still struggle to go beyond seed. This article aims to unpack how VCs work, what makes the Romanian scene distinct, and what both local and international founders should expect.
How Does Venture Capital Work?
Venture capital is a form of private equity funding that targets startups with high growth potential. In exchange for capital, investors—usually structured as funds—take an equity stake in the company. VC funds are managed by General Partners (GPs), who invest money raised from Limited Partners (LPs), such as institutions, family offices, or public programs like EIF or EBRD.
A typical fund has a lifespan of 8 to 12 years, to make several high-risk bets and achieve returns through company exits (acquisitions or IPOs). In Romania, most VC funds are relatively young and often co-financed by European public money, aligning them with strategic priorities like digitization, sustainability, and regional development. For founders, that means a good pitch often includes both business potential and alignment with EU policy goals.
What Makes the Romanian VC Landscape Unique?
The Romanian ecosystem is still catching up to other European markets, but it has several defining features. First, the mix of public and private capital is more pronounced than in Western hubs. Funds like GapMinder Ventures and Catalyst Romania operate with significant EU backing, which influences both their investment theses and geographic focus.
Second, the emergence of regionally oriented funds—like those announced for Vest, North-West, and Central Romania—signals an intent to decentralize funding. While that sounds promising, most capital is still concentrated in Bucharest. Third, Romania’s VC community is relatively small, meaning that personal networks, founder-VC fit, and timing play an outsized role in getting funded. There’s momentum, yes, but also room for professionalization.
Can You Start in Romania and Expand Across Europe?
In theory, yes—and many startups have. In practice, it requires more than traction: it requires a clear international roadmap and a willingness to hustle across borders. Romania offers low operational costs, access to tech talent, and increasing institutional support, making it a good test market.
Companies like FintechOS (raised €55M), TypingDNA (raised from U.S. and European investors), and Druid (AI, backed by Early Game Ventures and scaling internationally) represent great examples. Founders should think of Romania as a smart first stop: a place to validate, iterate, and prepare for larger rounds elsewhere. However, scaling from Romania still requires breaking out of a small domestic market and dealing with cross-border operational hurdles.
What Should Founders Know Before Approaching VCs?
Romanian VCs tend to invest early, but they’re cautious. Many write tickets between €100K–€1M, depending on their investment strategy and growth potential. Be prepared to demonstrate team-market fit, product readiness, and an understanding of the competitive landscape, if you have just an idea, you can validate it in accelerators such as Innovation Labs.
It’s also worth noting that Romanian funds vary widely in style—some are hands-on, others more passive. Some lean on public money and carry bureaucratic constraints. Due diligence processes may be lighter than in Western Europe, but unclear cap tables or IP issues can still kill deals. Bottom line: come prepared, be transparent, and do your homework on the fund before engaging.
What Are Public-Backed VC Funds and Why Do They Matter?
Public-backed VC funds are venture capital funds that receive part of their capital from institutions like the European Investment Fund (EIF), the EBRD, or national/regional programs such as JEREMIE. These funds are designed to stimulate investment where private capital is still hesitant—particularly in early-stage, high-risk, or geographically underserved areas.
Unlike purely private funds, public-backed funds often have a broader mission: to support emerging sectors, reduce inequality in access to funding, and build long-term innovation capacity. For founders, this can mean more patient capital, a stronger focus on impact, and access to networks beyond national borders. Yet, public backing can also come with more formalities—reporting requirements, process constraints, or slower decision-making.
Romania’s venture capital ecosystem is steadily taking shape, with more support for early-stage innovation and a stronger public-private investment mix. New VC funds for the Central, Vest, and North-West regions are currently in development, and are expected to launch in the near future—potentially as early as next year.
These upcoming initiatives mark an important step toward a more regionally inclusive and resilient ecosystem. For founders, this evolving landscape offers a valuable window to build, test, and prepare for growth within a supportive and increasingly connected market.
Is Romania a Good Option for International Founders?
While traditionally seen as a source of tech talent, Romania is now attracting international founders who relocate, incorporate, or pilot their startups here. With its expanding fund base, growing number of accelerators, and founder-friendly cost structure, Romania is becoming a gateway into the broader European market. Well-known accelerators such as Innovation Labs, Techcelerator, and Impact Hub play an important role in guiding early-stage teams through validation and fundraising. Additionally, sector-focused programs like inVest Accelerator, which targets startups in urban mobility looking to expand from Romania to international markets, provide structured support, mentorship, and direct VC exposure. Many VCs in the country welcome "born-global" startups or expat teams who choose Romania as their entry point. The proximity to both Western Europe and the Balkans also makes Romania an ideal operational base for scaling into multiple markets.
Romania’s venture capital landscape is still developing, but it offers real opportunities for early-stage founders. With a growing number of public-backed and private funds, expanding regional coverage, and accessible accelerators, the ecosystem is becoming more inclusive and better equipped to support innovation.
Whether you’re a Romanian founder or part of an international team looking to enter Europe, Romania can be a strategic and supportive environment to start, validate, and prepare for the next stage of growth.