www.business-review.eu Business Review | March May 2016 2020
COVER STORY TECH 27 14
Romania among the most attractive markets for US and UK tech companies Romania is among the 30 most favourable markets for US and UK tech firms, based on a wide range of factors, including the availability of skills, complexity of the regulatory landscape, quality of connectivity and infrastructure, GDP growth, and inward investment. By Claudiu Vrinceanu investors with only a few local Romanian funds able to participate in Series A+ rounds.
TOP PRIORITY FOR TECH FIRMS: ESTABLISHING PRESENCE IN A NEW COUNTRY A broader international footprint is less common for tech companies—only 20 percent of businesses have an international presence in four or fewer countries. Further, the share of firms with a widespread global presence is currently small—just 8 percent were active in over 14 different countries. This is set to change rapidly in the years ahead. For any growing business, establishing a presence in a new country is an exciting Bucharest is the main hub in Romania, driven by its strong digital workforce and diversity
R
time, but it can also be daunting and stressful. Given these challenges, Phil Dunne, head of
omania has been included on a list
companies. The survey revealed that 90 per-
international development for EMEA at Veloc-
of the world’s best markets for tech
cent of tech businesses across both countries
ity Global, argues that firms should be looking
companies in both the United States
were planning to expand to a new market
beyond the most obvious targets, as there are
of America and the United Kingdom. Inter-
within the coming years, and that access to
plenty of countries that are currently more at-
national business growth and development
new customers and talent were the key driv-
tractive to tech businesses looking to expand.
company Velocity Global ranked Romania
ers behind this.
He said: “Saudi Arabia, South Africa, Israel, Portugal, and Greece are all current examples
29th in its Global Expansion Tech Index,
EVOLUTION OF THE ROMANIAN TECH ECOSYSTEM
of places where government incentives are
After years of constant growth, 2019 set a new
tech talent, and we’re beginning to see more
tech companies and considers metrics like
milestone in the development of the Roma-
US and UK companies employing people in
regulation, knowledge, and growth, while the
nian tech startup ecosystem. It was growing
those places as a result.”
index lists the 50 best locations for inter-
up and attracting investors’ interest. Funding
national expansion. Countries were scored
of Romanian startups became more sustain-
nal barriers are the bureaucracy in Romania
according to a range of factors, including their
able and diversified. The pipeline of local and
and the lack of support from the government,
regulatory landscape, availability of skills,
international ventures is no longer driven by
according to a Romanian Business Leaders
and quality of infrastructure and connectiv-
a few small-sized companies in e-commerce
study. It seems that Romanian tech firms need
ity. Countries like Italy, India and Greece
and marketplaces, but rather shows a bal-
a very smooth transition within the target
followed Romania, and Europe was named
anced mix of innovative ideas in FinTech,
market, minimising risks and having more
the most desirable global destination. The top
Biometrics, Blockchain, Robotic Process
external support. One out of three Romanian
performing countries in the index were the
Automation and HR solutions, according to an
firms believe that they don’t have personal
Netherlands, the US, Hong Kong, Denmark,
EY report.
barriers within this process. However, those
which is part of a report on global expansion opportunities for the tech industry. The study examines the top markets for
having a dramatic effect in terms of retaining
For Romanian tech companies, the exter-
and Singapore, having scored highly on each
Bucharest is the main hub in Romania,
who did state their personal barriers men-
of these metrics. The research is based on the
driven by its strong digital workforce and di-
tioned the lack of connections and experi-
expansion ambitions of 1,000 US and UK tech
versity. Top funding is driven by international
ence/knowledge about the market.
