STARTUP ECOSYSTEM
Romania Funding volume
Romania’s Venture Capital Landscape
Romania’s venture capital ecosystem experienced a dynamic first half of 2024, marked by both challenges and opportunities. Domestic startups raised €71.7 million across 23 investment rounds, while foreign startups with Romanian founders secured €28.74 million in 6 rounds. These figures underline Romania’s growing prominence within the Eastern European venture capital landscape, despite a slight decline compared to the same period in 2023.
This performance demonstrates the resilience and adaptability of the country’s startup ecosystem amidst global economic shifts. The total investment volume also includes a standout deal: FintechOS’s $60 million (~€56 million) Series B+ round, which served as a significant driver of Romania’s venture capital success in 2024.
Funding Volume
Romanian startups raised €71.7 million across 23 investment rounds in the first half of 2024, complemented by €28.74 million raised by foreign startups with at least one Romanian founder. A breakdown of key funding ranges reveals:
- €829.5K in 9 rounds under €200K (likely more investments occurred at this stage but were not publicly disclosed).
- €2.57M in 7 rounds between €200K and €1M.
- €6.82M in 5 rounds ranging from €1M to €3M.
- €5.5M in 1 round exceeding €3M.
- FintechOS’s $60M (~€56M) Series B+ round.
The average investment size during this period stood at €3.12 million per round, reflecting a healthy mix of smaller angel-backed investments and larger institutional-led rounds.
Source: Startup Venture Capital Funding in Romania: Overview of January to June 2024.
Romania’s startup ecosystem continues to diversify across key sectors such as Fintech, ICT, AI, MedTech, and Green Tech. While major hubs like Bucharest and Cluj remain central to investment activity, regional innovation is beginning to make its mark. Notably, venture capitalists are increasingly focused on profitability and sustainability, preferring to back follow-on rounds that protect their portfolios. According to Razvan Suta, CEE Business Development Lead at Startup Wise Guys, this cautious yet strategic approach has resulted in better-than-average survival rates for accelerator-backed startups.
The first half of 2024 featured several significant funding rounds, showcasing Romania’s capacity to foster innovation across diverse industries. Key deals included:
- FintechOS: Secured $60 million (~€56 million) in a Series B+ round, led by Molten Ventures, Cipio Partners, and BlackRock, cementing its position as a leader in financial product management.
- Genezio: Raised €1.87 million in a pre-seed round led by Gapminder Ventures and Underline Ventures.
- Nordensa: Attracted €1.65 million from angel investors, including members of the Transylvania Angels Network and Growceanu, to democratise investment in football players.
- TOKERO: Secured €1.3 million to develop its utility token for a cryptocurrency exchange platform.
- ELEC: Raised over €1 million to expand its electric ride-sharing and electromobility ecosystem.
Foreign Startups with Romanian Founders
Foreign startups with Romanian founders also achieved significant milestones, raising €28.74 million across 6 deals in H1 2024. Notable investments included:
- Ezra: A New York-based startup with Romanian roots, which received €19.6 million for its AI-powered full-body scan solutions, in a round led by Healthier Capital.
- Deltia.AI: A Berlin-based AI startup specialising in factory technologies, which raised €4.5 million in a seed round led by Cavalry Ventures.
- FilmChain: A startup founded by two Romanian entrepreneurs, which secured €2.8 million to enhance its international film industry solutions.
These investments highlight the global impact of Romanian talent, even as the local ecosystem matures.
Romania in the Eastern European Rankings
While Romania’s venture capital market surpasses countries like Bulgaria and Slovakia, it lags behind others such as Slovenia, Poland, and Estonia in terms of total rounds and investment volume. Private equity investments account for less than 0.03% of GDP, ranking Romania among the lowest in Europe. The market remains highly reliant on government agencies and international financial institutions, such as the European Investment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD), which together represented 61% of all fundraising between 2018 and 2021. By comparison, government sources in Central and Eastern Europe accounted for only 39% of fundraising during the same period, indicating a more diversified investor base in the region.
While Romania’s venture capital landscape still has room to mature, its steady development and growing sectoral focus provide a promising foundation for future growth. As local and international players collaborate to build a more diverse funding ecosystem, Romania’s startups are well-positioned to thrive in an increasingly competitive market.
Resources
Romania Funding volume
Romania’s venture capital ecosystem experienced a dynamic first half of 2024, marked by both challenges and opportunities. Domestic startups raised €71.7 million across 23 investment rounds, while foreign startups with Romanian founders secured €28.74 million in 6 rounds. These figures underline Romania’s growing prominence within the Eastern European venture capital landscape, despite a slight decline compared to the same period in 2023.
Romania Investment in key sectors
Romania’s economic development is closely tied to its strategic focus on technology and education. These sectors have received significant public and private investments, fostering innovation, building a future-ready workforce, and enhancing the country’s global competitiveness.
Romania Innovation index
Romania is actively working to enhance its global competitiveness by focusing on innovation, research, and development. Key indicators of this progress include the Global Innovation Index (GII) rankings, R&D expenditure, and patent activity.
Romania Export/Import Ratio
Romania's trade in technology products demonstrates both strong export capabilities and significant reliance on imports, revealing key trends in the country’s technology and manufacturing sectors.
Romania Startup density
Romania is emerging as a hub for innovation and entrepreneurship in Southern and Eastern Europe. Known for its historical richness and scenic landscapes, the country is making waves in the global startup scene. Over recent years, Romania’s startup ecosystem has gained significant momentum, attracting investors, skilled talent, and global corporations. The following insights highlight Romania’s global and regional rankings, startup growth, funding achievements, and overall ecosystem value, showcasing its growing importance as a destination for startups and investors alike.
