DEVELOPERS AND TENANTS JOIN FORCES TO EMPOWER WORKFORCE
April, 2021 / Volume 25, Issue 3
www.business-review.eu
8
ROMANIA’S STAR SECTORS
13
IN THE AGE OF REMOTE WORK, LOCATION STILL MATTERS FOR STARTUPS
28
CROWDFUNDING CAMPAIGNS HELPING OUT SOCIAL ENTREPRENEURS
36
EVERGENT INVESTMENTS SETS TARGETS ON REAL ESTATE, AGRIBUSINESS AND CLEAN RESOURCES
www.business-review.eu Business Review | April 2021
• Editorial •
EDITORIAL 3 REAL ESTATE
Anda Sebesi • Editor-in-Chief • 6 Residential market expected to drive Romania’s FDI growth in coming years
COVER STORY
Stars sectors shining in 2021
F
10 EVERGENT Investments sets targets on real estate, agribusiness and clean resources
MAIN STORY
rom an economic perspective, Romania performed well last year, even under the pressure of the pandemic. Foreign investments halved over the first ten months of the year com-
pared to the same period in 2019, but this was offset by a growth
13 Romania’s
in governmental spending and investment. With the strongest in-
star sectors
crease in Gross Domestic Product in the European Union in the last quarter of 2020, of 5.3 percent, and a total decline of 3.9 percent over the whole year, Romania needs better management of all its
ENTREPRENEURSHIP
economic instruments in order to achieve a V-shaped recovery. According to the Business Sentiment Index survey conducted in September by the Foreign Investors Council (FIC), many re-
28 In the age of remote work,
spondents expressed concern regarding the worsening business
location still matters for startups
environment, the Romanian market’s low attractiveness, and the
30 Crypto boom may fuel new
deterioration of their own initial investment plans.
investments in startups
Nevertheless, we’ve decided to dedicate this month’s top story to Romania’s star sectors, highlighting some of the most dynamic and resilient players of the pandemic year. From logistics to the
CITY
chemical industry, IT & telecommunication, automotive, and retail, these sectors will all need to face the challenges of a local business environment that will be strongly influenced by the persistence of the coronavirus pandemic. Last but not least, this month’s cover story is dedicated to EVERGENT Investments, the former SIF Moldova, which changed its name in March and aligned with the new European legislative framework on alternative investment funds.
36 Crowdfunding campaigns helping out social entrepreneurs
38 What’s new in town?
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | April 2021
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Brio.ro uses AI and launches mathematics training module By Mihai Cristea knowledge and increase student performance. For example, if after a standardised test the report highlights gaps in certain types of knowledge, the students can then do fur-
Florin Godean the Country Manager of Adecco Romania, is the new President of the SwitzerlandRomania Chamber of Commerce. Godean took over the Country Manager role at Adecco Romania in 2011 and under his leadership, the company became a market leader and has kept its position for 8 consecutive years. He is a graduate of the West University of Timisoara, with a degree in economics. “The Swiss business environment in Romania and the community of companies around CCE-R are recognised for solidarity and proactivity,” Godean said.
ther training only on that type of problem, until their results improve. In addition, students can also choose the training tests which are aligned with what is being taught in class
Currently, Brio.ro offers tests in mathematics, Romanian language and literacy
page 5
helps them learn the subject much more easily, throughout
Brio.ro, the first and only stan-
all users, and more will be devel-
the year. Hence, besides being
dardised digital testing plat-
oped later for students in grades
an evaluation provider, Brio is
form in Romania, will upgrade
V-VIII and high school.
also becoming a learning pro-
The training module was de-
vider,” says professor Dragos
the platform by launching a
veloped following a EUR 30,000
Iliescu, CEO, Chief Scientist,
mathematics training module
funding obtained in the Innova-
and founder of Brio. Currently,
which is based on program-
tors for Children accelerator, a
Brio.ro offers tests in mathe-
matic item generation. Upon
programme developed by Impact
matics and Romanian language
launch, the tests will be avail-
Hub Bucharest in partnership
which fully cover the school
able in a beta version for the
with Impact Hub Basel and Fon-
curriculum, as well as literacy
first 200 students in grades I-IV
dation Botnar.
tests. In the coming period,
the types of tests available on
who register on the platform,
Alexandru Oprea has taken over the role of Country Manager at REHAU Romania. Oprea started his career at REHAU Romania in 2004. In 2010 he was appointed Sales Manager for Bucharest and Bacau within the Building Solutions division, became Head of Sales of the entire Building Solutions division in Romania in 2011, and in 2015 he took over the same department at REHAU Bulgaria. Since 2018, he has been a member of the REHAU Romania Administrative Board, and in 2020 he served as Deputy Country Manager.
at any particular time, which
“By launching this new test
the platform will add subjects
and in another month or so, the
module, we provide a much more
like history, biology, chemistry,
tests will be made available to
complex tool to help improve
physics, and digital literacy.
Uber arrives in Galati By Mihai Cristea On April 1, Uber became avail-
in 2015, in Bucharest, and then
able in Galati, making it the sec-
went through a rapid expansion
ond city in the Moldova region
to Cluj, Timisoara, Brasov, and
where the service is operating,
Iasi, having added Constanta last
after Iasi was added in 2019, and
summer and Craiova just last
the eighth Uber city in Romania.
month. As in all other Romanian
Uber first launched in Romania
cities, Uber drivers in Galati are
Uber will bring its most popular service in Galati UberX
www.business-review.eu Business Review | April 2021
NEWS 5
Sameday expands easybox service By Mihai Cristea Sameday, one of the leaders
Andrei Jerca is the new Managing Director of Element Industrial. A professional with 14 years of experience in the real estate industry, Jerca has worked for companies such as Europolis, CA IMMO (Asset Manager), P3 (Head of Asset Management Romania) or CBRE (Head of Industrial Services), having been involved both in the management of a portfolio of 300,000 sqm of logistics space as well as in the development of logistics and industrial projects amounting to 200,000 sqm.
of the local courier market, announced the expansion of its easybox service upon the inauguration of the 1000th locker, at 5 Lanariei Street in Bucharest. The company aims to double the existing easybox network by the first quarter of 2022. Currently the operator of the largest network of delivery machines in Romania, Sameday launched its first locker in Bucharest in September 2018, and has constantly expanded this service ever since, covering all counties in the country,
Sameday launched its first locker in Bucharest in September 2018
including both major cities such as Bucharest, Cluj, Con-
For the location of easybox lock-
as they are looking for effi-
stanta, Iasi, Timisoara as well
ers, Sameday has into partner-
ciency, predictability, conve-
as smaller localities. There are
ships with shopping centers,
nience, and flexibility. What we
now about 250 lockers in the
gas stations, residential centers,
have managed to build so far
capital city, over 60 in Ilfov
but also with individuals, own-
through the national network
County, and almost 700 across
ers’ associations or local public
of easybox lockers is the result
the rest of the country. Except
authorities.
of a continuous investment
for the Bucharest-Ilfov region,
“The launch of our thou-
in technology and a constant
the counties in the country
sandth locker is an important
effort to improve and integrate
with the highest number of
milestone in the Sameday strat-
the feedback received from our
easyboxes are Cluj (85), Timis
egy. It allows us to be closer to a
partners, as well as from end
(71), Iasi and Constanta (58),
growing number of consumers
users,” said Lucian Baltaru, the
and Brasov (48).
and to better serve their needs,
CEO of Sameday.
Tanja Blatnik has been appointed as General Manager for Romania by the Euroins Insurance Group. Blatnik is joining Euroins Romania after over 20 years of experience in the insurance industry, during which she has led important operational teams and projects across Central Europe. Before joining Euroins Romania, Tanja Blatnik was the executive director for operations at Generali Insurance Slovenia and at Adriatic Slovenica Insurance Company.
fully licensed to safely drive passengers to their destinations. Uber will bring its most popular service to Galati – UberX. “People are very interested in alternative means of transportation all over the country, and Galati is no exception. That is why we want to become a reliable partner for local authorities and to provide people in Galati with affordable and safe transportation alternatives,” said Ana Maria Borlovan, Country Operations Manager at Uber Romania.
Cristian Pana is the new Managing Director of Ubisoft Romania. Having been with the company for the past 18 years, Pana started out as a Video Game Tester. In 2015, he joined Massive Entertainment, Ubisoft’s Studio based in Malmo, Sweden, as Producer, and later became Executive Director of the Production Department.
www.business-review.eu Business Review | April 2021
6 REAL ESTATE
Residential market expected to drive Romania’s FDI growth in coming years The residential sector in Romania performed above expectations in terms of total sales in 2020, with an increase of 19 percent compared to 2019, according to data from the National Cadastre Agency. The result was better than even the most optimistic estimations, considering the fact that 2020 had two months of total lockdown. By Aurel Constantin consultant SVN Romania. Significant developments are also being recorded in other regional residential markets in Romania, such as Constanta, Brasov or Cluj-Napoca. Of all the residential units currently being developed in and around Bucharest, approximately 18,000-20,000 could be delivered this year. The number will depend on the degree to which developers will be able to maintain their current pace of construction and the ease with which they will complete delivery papers. This volume of deliveries would be similar to the one registered in 2020, when a new record was established in Bucharest and its surrounding areas, despite the COVID-19 pandemic. 20,733 residential units were delivered in the region last year, up 40 percent compared to 2019, according to data from the National Institute of Statistics. “The overall difficult context we are living through has had a limited impact on the local residential market, which withstood the macroeconomic shock caused by the COVID-19 pandemic. Significant increases in the
E
The premium and luxury segment is due to register its best results in 2021, with around 700 units expected for delivery
number of closed transactions were recorded in all regional residential markets in Romania, with new delivery records in Bucharest and
urostat statistics show that 45.8
in Bucharest, with a total investment value of
the best level of accessibility for purchasing a
percent of the Romanian population
EUR 1 billion.
new home in recent history. Today we are in
The capital city and its surroundings are
a far better position compared to March 2020,
this context, both local and international
among the most sought-after regions in the
when the health crisis started. Therefore, 2021
developers are expanding their investments
country, with a total population of over 3
has the potential to bring more great results,”
in new and modern residential units. Accord-
million people. Over 24,000 new residential
said Andrei Sarbu, the CEO of SVN Romania.
ing to data collected by the Bucharest Real
units are under construction in this area, ac-
Estate Club, over 50 projects were delivered
cording to the “Romania Residential Market
2021 TO BRING SIGNIFICANT CHANGES
in 2020 or are under development until 2023
Genome 2021” report released by real estate
The supply of new housing in 2021 will see
lives in overcrowded homes. Given
www.business-review.eu April2016 2021 Business Review | May
COVER REALSTORY ESTATE14 7
insignificant changes from 2020 figures. The
In January 2019, the same apartment
tors,” said Dan Flesariu, Head of Real Estate
largest share of the units due to be delivered
would have amounted to 107 average wages
Transactions, Strategy and Transactions at
this year in Bucharest and its surroundings
(or a period of 8.9 years). A year before that,
EY Romania. One of these factors is that more
– 55.2 percent – will target the mass market
the price of the home would have repre-
than 80 percent of the housing stock is about
segment, with developments in large urban
sented 117.6 average wages (9.8 years). During
40-50 years old or older, which means it is
neighbourhoods or on the outskirts of the
the market peak of 2008, you’d have needed
obsolete, physically depreciated, and energy-
city and with prices that reach EUR 1,300 per
no fewer than 393.6 average wages or the
inefficient. Apart from the fact that half of
net square metre.
equivalent of almost 33 years of work. We
Romanians are living in overcrowded homes,
should note that the average wage in Bucha-
there are also high rates of domestic migra-
which wages have continued to increase in
rest is approximately one third above the
tion and commuting. According to the World
recent years. At the same time, the demand
national level.
Bank, a net total of 2 million people migrated
Approximately 8,300 new residential units due to be delivered in 2021 will target the middle market segment, a figure similar to the one recorded in 2020. Prices for such units usually start around EUR 1,300 and go up to EUR 2,000 per net square metre. The middle market segment will thus continue to attract a significant share of deliveries, in a context in
for well-located homes, either at the heart of large neighbourhoods or in the semi-
from rural to urban areas in the first decade of the current century, and the trend is expected
central and northern areas of Bucharest, has
A DRIVER OF FOREIGN DIRECT INVESTMENTS
continued to grow. In general, these units
The residential sector was the unexpected
have bigger-than-average surfaces and high-
winner of the pandemic, as opposed to the
million Romanians working abroad intend to
quality finishes.
industrial sector, which had been expected to
gradually return to Romania in the foresee-
The premium and luxury segment is due
to continue in the second decade. Furthermore, almost 30 percent of the 4
do well from the very beginning. The overall
able future, and they are seeking homes at
to register its best results in 2021, with around
feeling about the residential sector was
European standards. “We expect that the
700 units expected for delivery. Usually,
rather bleak during the lockdown of spring
home rental market will mature and that
premium and luxury units are located in the
2020, but it recovered quickly and
northern part of the city and have trading
sharply during Q2-Q4 2020.
prices that start from EUR 2,000 per net
Transaction volumes
square metre. Overall, the high-end market in
in 2020 matched the
Bucharest has a yearly value of EUR 250 mil-
2019 levels, while
lion, according to SVN Romania estimates.
overall prices
professional investors in dwelling stock will step in,” Dan Flesariu added. The Bucharest Real Estate Club notes that while
The accessibility of purchasing a new
grew by an esti-
one-bedroom
home in Bucharest reached the best level in
mated 5 percent.
apartments re-
modern history at the beginning of 2021. To-
“Demand
day it is for times more accessible to purchase
for residential
a new home in Bucharest than it was in 2008,
spaces is on the
according to the profile index calculated by
rise and, as long
SVN Romania.
as prices maintain
In January 2021, you needed 99.6 national
a reasonable and
main the most popular in the middle segment development mix, thanks to their low prices,
average net wages to purchase a new one-
healthy margin over
bedroom apartment in Bucharest (50 sqm)
inflation, this trend should
or the equivalent of a period of 8.3 years of
be sustainable. Despite the
work, compared to 102 average net wages
fact that Romania has the highest home
(8.5 years) that would have been required in
ownership rate in the EU (around 96 percent),
not been affected by the pandemic and who
March 2020, when the COVID-19 pandemic
the demand for new homes is expected to
are willing to pay as much as EUR 4,000-
broke out in Romania.
keep growing based on several critical fac-
5,000 per square metre of exclusive property.
the luxury segment continues its development trend. There are increasingly sophisticated clients whose incomes have
www.business-review.eu Business Review | April 2021
8 INTERVIEW
Developers and tenants join forces to empower workforce With the pandemic having changed the way we live and work, real estate developers and tenants need to find ways to provide a safe working environment for employees. By Anda Sebesi context. Each project has its own advantages: for example, Business Garden Bucharest has 30 percent of its space dedicated to the garden, where the employees can work, play chess or ping-pong, drink their morning coffee or just take a break outdoors. On the other hand, Timpuri Noi Square has a large recreational plaza area, together with a multimodal football court where employees can have fun and enjoy team sports in order to reconnect with each other when they return to the office.
Antoniu Panait, Vastint
How has the pandemic changed the way office buildings are perceived by tenants and what have developers done – in terms of investments – to support their tenants’ safe return to the office?
Could the benefits mentioned above be part of your tenants’ employer branding strategies?
enced burnout, while a third stated they did
Project details and amenities can be lever-
not feel connected to their colleagues.
aged by employers in corporate branding
In our case, the property management
strategies and have a direct impact on HR
teams of both Timpuri Noi Square and Busi-
recruitment and retention processes. Apart
ness Garden Bucharest have invested a great
from that, there are also several other aspects
Since the start of the pandemic, companies
deal of time and effort to ensure that the
to mention, including the office layout and
have had to react quickly and cautiously
buildings are ready to safely welcome our ten-
desk occupancy ratio. Location continues to
while remaining flexible in order to adapt to
ants’ employees back to the office at any time,
be one of the most important decision drivers
the constantly-changing environment. The
while maintaining operational budgets under
as recent research has re-confirmed that for
first step was to shift either completely to
control. Timpuri Noi Square was the first
over 64 percent of employees, office acces-
working from home or to a hybrid scenario.
office project to obtain Bureau Veritas' Safe
sibility and the safety measures taken inside
No person or company was spared of the
Guard certification, in June 2020, followed
the office building are the two most important
uncertainty of the near future and most em-
closely by Business Garden Bucharest.
factors in deciding whether to take or keep a job.
ployers had the same goal: keep employees safe and companies active. ings about returning to the office full time,
What are the benefits that green and sustainable buildings can offer to employees in difficult times like these?
companies still need time to assess the impact
Green and sustainable buildings mean more
To what extent do you think this adaptation of office buildings will contribute to a better employee performance?
of remote working and decide what the future
than technical specifications, but those have
Developers and tenants should make a joint
should look like. After a year, we are able to
a direct impact on the comfort of their us-
effort, as the comfort provided by the build-
understand more and weigh pros and cons
ers. Healthy air conditioning and a superior
ing quality and proper safety measures – both
while taking a thorough look at the past year
ventilation system – providing 100 percent
in common areas as well as in leased space
in order to plan out next steps. It is important
fresh air – combined with Vastint’s standard
– are directly related to higher productivity.
to see the downsides of the working from
3-metre floor heights and openable windows
A proper working environment means happy
home period, with research having shown
are key factors in providing proper ventilation
employees, which improves focus and leads
that 69 percent of employees have experi-
of offices, which is very important in today’s
to increased efficiency.
While employees may have mixed feel-
www.business-review.eu Business Review | April 2021 May 2016
SUSTAINABILITY COVER STORY 149
Setting highly sustainable goals Vanessa Butani, Head of Sustainability at Electrolux Europe, talks to Business Review about the company’s strategic goals and offers insights into how our day-to-day lives could be more sustainable. By Anda Sebesi and challenge the perception that healthy cooking is difficult, takes a long time, and doesn’t taste good.
What can you tell us about the innovative features and technologies embedded in Electrolux appliances? We always try to challenge ourselves and we set targets like reducing the amount of energy we use in our products by 25 percent by 2025. In terms of specific technologies, we have the FridgeCam, which allows consumers to remotely check on the contents of their fridge via a mobile app, and it’s very helpful because using what you already have helps you avoid overconsumption and food waste.
What are Electrolux’s business objectives in terms of sustainability?
ing to become a consumer-driven experience
Sustainability is truly part of our DNA and
actions that have allowed us to leverage our
Can you provide some details about the Sustainable Eating concept?
part of who we are as a global appliance
heritage and build our brand have been our
Through the Electrolux Food Foundation
manufacturer. As a leader in sustainability,
campaigns, including Make It Last, where our
we promote sustainable eating by helping
we launched the Better Living Programme
target is to make clothes last twice as long
consumers reduce food waste, adopt more
in 2019 as an 11-year action plan that aims
and have half the environmental impact. In
plant-based eating, minimise nutrition loss in
to shape better and more sustainable living
order to achieve this, we’ve had to get back to
cooking, and enhance sustainable eating ex-
around the world. Its focus is an evolving
consumers and change their behaviour and
periences. Public data shows that 52 percent
list of 100 bold actions that we pledge to
habits. Through the Make It Last campaign
of people consider themselves to be climate
undertake by 2030. These actions represent
we help consumers use our products in a way
conscious, yet we don’t live as sustainably as
our commitment to the four 2030 targets
that can make their clothes last longer. And
we would like. Hence, empowering consum-
which we have defined across the categories
it is not just about the washing machine; it
ers and trying to close the gap between what
of Better Eating, Better Clothing Care, Better
is about using it the right way, understand-
they want to do and what they are actually
Home Environment, and Better Company.
ing its functionalities, and thinking ahead.
doing is a big challenge. Many people don’t
For example, Future Sustainable Kitchen,
Our study called The Future of Laundry,
understand all the functionalities of their
an online event that took place recently,
which included around 13,000 people across
appliances and how they could use them in a
brought together experts from across the food
Europe, found that many of us learn to wash
more sustainable way, so all the technologies
ecosystem to discuss how we could all work
our clothes from our parents and our habits
we’ve introduced allow consumers to find
together to turn sustainable eating into the
need to be updated considering the high qual-
easier ways to cook food in a healthy man-
preferred choice.
ity of detergents nowadays, as well as how
ner. Last but not least, in October 2018, the
powerful our washing machines are and their
Electrolux Food Foundation launched Food
What measures has Electrolux taken in order to achieve these sustainability goals?
multiple functionalities.
Heroes, an educational initiative for kids, in
The first step was recognising our role and
with SideChef, an all-in-one home cooking
aim is to inspire the next generation to eat
what we could achieve by setting ambitious
platform that provides over 18,000 interac-
more sustainably and teach them about the
targets. We created a consumer experience
tive smart recipes with dynamic guidance. We
important relationship between food and the
organisation to show that we were really try-
want to help people cook more sustainably
welfare of our planet.
company. In addition, among the concrete
On the food side, we’ve partnered up
partnership with AIESEC and Worldchefs. The
10 COVER STORY
www.business-review.eu Business Review | April 2021
EVERGENT INVESTMENTS SETS TARGETS ON REAL ESTATE, AGRIBUSINESS AND CLEAN RESOURCES
www.business-review.eu Business Review | April 2021
COVER STORY 11
In March 2021, SIF Moldova became EVERGENT Investments. For the first time in Romania, a financial investment company is changing its name and aligning with the new European legislative framework on alternative investment funds. EVERGENT Investments is the company with the largest capitalisation of all financial investment companies listed on the Bucharest Stock Exchange (RON 1.38 billion). Over the last 10 years, the company has seen sustained growth dynamics, with the fund’s compound rate of return reaching 9.23 percent, which is 1.77 percent above the average return obtained by all other equity funds in Romania. Business Review talked to Claudiu Doroș, the CEO of EVERGENT Investments, to find out more about the company’s plans. By Aurel Constantin How has the pandemic influenced the activity of EVERGENT Investments?
full of tough news and measures, the psychological effects of which
The pandemic’s impact on the global economy has highlighted the
review our strategic options, and reach conclusions that were not
importance of resilient investments and risk management in times
at all surprising. One of these was the fact that EVERGENT’s private
of prolonged turbulence. Robust businesses, solid strategies, and
equity portfolio is robust and profitable, and that two sectors – resi-
high-performance portfolios that can generate profit even in crisis
dential real estate and agribusiness – are by far the best options for
cannot be built overnight; they require a deep understanding of
future growth. We have realised that our portfolio has had excep-
asset management and capital markets. The healthy growth with
tional risk/return ratio during these times, so we have decided to
perseverence of a business must be carried out in well-planned
bravely invest in development. In the medium term (3-5 years), we
stages, over a long period of time. The 2008 economic crisis and the
will reach an exposure of 25-30 percent of our assets in these sectors,
turmoil caused by the pandemic have shown us that, just like in any
compared to 10 percent currently. Our real estate projects, namely
other modern crisis, those who have the resources and the strength
Veranda Mall in the Bucur Obor area, Baba Novac Residence in the
to hold on and to rebalance their investment positions can generate
Dristor area, and Atria Urban Resort – a four-stage development proj-
sustainable profits.
ect near Straulesti lake with an environmentally-friendly concept
are still difficult to evaluate, we have managed to test out our ideas,
2020 might have been a lost year in terms of both global and local
through its special landscape design and above-average quality of
stock exchange indices. But as the saying goes, “good things happen
living – have a strong potential of generating positive cash flow for
to those who wait.” Our current strategy, which we have made pub-
EVERGENT Investments. This encourages us to move on to the next
lic, aims to generate value for our shareholders in the long run.
level of quality, targeting premium areas and other big cities. The
One of EVERGENT Investments’s strategic directions is an active
Agrointens company, which manages almost 100 hectares of blue-
management of its listed portfolio, based on two stable pillars: the
berry fields, has confirmed our financial projections and will enter
finance and banking sector and the energy and utilities sector. In
a new accelerated development stage through new field purchases
the last 10 years, we have focused primarily on the two listed banks
and plantations of a high qualitative level. We are already leaders on
in our portfolio (TLV and BRD), to a great extent on the shares of
this market in Romania and we have decided to also take the lead in
the biggest Romanian producers of oil and gas (SNG and SNP), on
the region, as demand in the EU, our target market, is very high.
energy (EL, SNN shares), as well as on national transport operators
To conclude, we have a new goal of purchasing land and driving
(TGN and TEL). We have kept our exposure on the shares of these
development with special yields based on the fact that our busi-
companies despite the pessimistic views expressed by some vocal
ness model has been validated even during the pandemic, and our
analists in the public sphere, which were somehow understandable
experience gives us the confidence to believe that we hold the recipe
due to the uncertainty generated by the pandemic. The solidity of
for long-term success. We can let figues speak for themselves when
these companies’ business model, their available resources and
it comes to EVERGENT Investments’s results during the pandemic.
reserves as well as their high-performance portfolios have made
Our 2020 net profit reached RON 56 million (consisting of net profit
them less vulnerable. Stock exchange indices that cover these shares
and net gains reflected in earnings from other comprehensive
serve as proof. In Q1 2021, we saw a beautiful recovery of the decline
revenues), which exceeded our forecasts by 44 percent. Addition-
recorded in the summer of 2020. Obviously, we have permanently
ally, the value of investments reached RON 177 million in 2020, 68
recalibrated the listed portfolio portfolio based on predictable short-
percent above the budgeted level.
medium term evolutions, in order to increase its performance, and we have been successful so far. In the long run, we will benefit from obtain sustainable revenues from new investments for our share-
What is the outlook for the investment market in the next 12 months considering the fact that we are still dealing with the pandemic’s restrictive conditions?
holders. Furthermore, although we have all gone through a period
Capital markets are on an upward trend globally, and the movement
double-digit yields, which is not at all easy in our industry. We will
www.business-review.eu Business Review | April 2021
12 COVER STORY
that started at the end of 2020 – of increased capital inflows from
citizens’ need for quality homes, the easier and cheaper financing
technology companies towards traditional companies, with a cyclic
process, and the profitable activity for developers, where quality,
evolution – is having an impact on the Romanian market as well,
experience, and responsibility make all the difference.
which confirms our expectations of an economic recovery. “We can state that we are experiencing the beginning of a new economic
Where do you see EVERGENT Investments five years from now?
cycle, which is also stimulated by support packages in the EU, US,
EVERGENT Investments is a powerful as well as a modern company,
and Asian countries. We are noticing enthusiasm among individual
built through a great and lengthy endeavour, and has been setting its
investors, who have more economic resources than they did before
goal of being a leader. We have aquired an efficient and sustainable
the pandemic, but also have an appetite to invest on the Bucharest
business model and we are one of the top players of this industry in
Stock Exchange. Romanian and foreign institutional investors, pen-
Romania, with well-rooted and transparent values and an excellent
sion funds, local and regional investment funds were all encouraged
financial performance. This success is based on our professional
by the Romanian market being upgraded to emerging status.
ethics, which are grounded in responsibility, innovation, and perfor-
Considering the fact that the Bucharest Stock Exchange recently
mance, as well as our personal values, which are embraced by each
exceeded its 2007 record, with the BET Index reaching 10,961 points,
team member. We are passionate about what we have been doing so
the best performance in its 24-year history, we strongly believe
far and clearly understand our mission of managing assets to obtain
that we have good reasons to be optimistic about the year ahead. The fact that stock exchange indices are
value in the long run. As a result, all our actions are centred on our shareholders and the benefits we can offer them. As we have already shown, we like to
recording historic highs these days must be
believe that we have in-depth knowledge to
looked upon from a broader perspective,
recognise and take advantage of oppor-
alongisde an analysis of parameters such
tunities to generate valuable long-term
as total volume, liquidity, depth. Our
investments. But we also have the
market is small and still cheap com-
ability to set up an optimal exits when
pared to other emerging markets, but
an investment reaches maturity or our
these weaknesses are in fact hiding
projected financial target.
big opportunities, and investors know
Within a decade, we have doubled
that. Since the start of the year, the main
the assets under our management to
indices have increased by 10 percent on
over RON 2.2 billion, and to make this
average. That is why a growth scenario of
happen we have invested and re-invested
another 10 percent is credible, to reach a 20 percent total increase over 12 months. There may come times of corrections, with high volatility levels, but these should be seen as aquisition opportunities. Moving
roughly RON 2 billion. During that time, we distributed almost RON 700 million as dividends. We have generated an average ratio of value appreciation for shareholders, cashed in dividends in addition to an
on to the real estate market, in the residential sector, all statistics
asset increase of 13.2 percent, and recorded a performance above the
show buyers’ interest remaining stable and demand progressing
average return of all equity funds in Romania. We are not looking for
towards larger apartments, in order to accommodate remote work-
exotic markets or products. We would like to continue investing on
ing needs, together with a preference for open areas like terraces,
the Romanian capital market, which we know very well. We have
gardens, and parks. Data also show that the amounts available for
developed an efficient and sustainable business model, which is
apartment purchases are at the highest level of the past few years, as
bound to remain successful and provide us with a continued “drive
are salaries, which also encourages banks with excess liquidity to rev
for performance,” just as our slogan states.
up crediting engines. As the end of the pandemic approaches, we’re seeing demand for
The EVERGENT Investments Board of Directors will continue to implement a well-defined investment strategy and seek to reward
houses increasing, and areas with natural greenery near Bucharest,
shareholders through an optimal mix between a predictable divi-
the biggest real estate market in Romania, will become new destina-
dend policy and annual redemption programmes, which will offer
tions for the systematic development of condominium-type hous-
superior yields now and in the long run, as opposed to a simple
ing, with high-quality facilities and services. For instance, along the
delivery of dividends.
A3 Bucharest-Ploiesti motorway, after a few kilometres of logistics
Within the next 5 years, we will harvest some of the results from
and residential developments, there are woodland areas with excel-
our current portfolios and will direct our investments towards
lent air quality, especially around Moara Vlasiei and Ghermanesti
rapidly-expanding and valuable new sectors, including a strong
exits, and they are quite close to well-established communities such
component of social and environment responsibility. Sectors such as
as Snagov. The pace of building and selling in other big cities of Ro-
intensive agribusiness, clean resources, eco-friendly buildings and
mania, such as Iasi, Cluj, Brasov or Constanta, is also encouraging for
housing, and perhaps even new technologies that could increase
investors. We can actually see a virtuous circle developing between
citizens’ quality of life will be some of our main targets.
www.business-review.eu Business Review | April 2021
Romania’s star sectors With the strongest increase in Gross Domestic Product in the European Union in the last quarter of 2020, of 5.3 percent, and a total decline of 3.9 percent over the whole year, Romania’s economy managed to withstand the first year of the pandemic. Along with a series of measures taken by local authorities at the macroeconomic level, the business environment played a significant role in this achievement. Business Review decided to talk about five star sectors of the local economy – from logistics to the chemical industry, IT & telecommunication, automotive, and retail – which performed well last year and are now well equipped to face the challenges of a local business environment that will be strongly influenced by the persistence of the coronavirus pandemic.
MAIN STORY 13
www.business-review.eu Business Review | April 2021
14 MAIN STORY
Romania remains a giant of the global chemistry industry This year, Chimcomplex will open the most modern polyol plant in Central Europe, after an investment of EUR 40 million at Oltchim. Stefan Vuza, the president of the company, tells Business Review how operations carried out by Chimcomplex are consolidating Romania’s position on the map of global chemistry industry giants. By Anda Sebesi What can you tell us about the inauguration of the newest polyol plant in the region, in Ramnicu Valcea?
Chimcomplex-Oltchim has a strong focus on innovation. How do you keep up with giants in western Europe?
This year we are going to complete our
Tradition and experience matter and
investments in the newest and most ef-
Romania has been – and continues to
ficient polyol plant in the region, worth
be – a giant in the world of chemistry.
almost EUR 40 million. This will increase
This is how Chimcomplex has managed
our production capacity to over 140,000
to become a strategic company for the
tonnes/year, and we will be among the
national economy as well as a champion
top 8 players in Europe by volume. Poly-
of the chemical industry, and it has the
ols are used in a variety of sustainable
right infrastructure to begin moving
applications, from wind turbine blades to
Romania towards a green future. We want Romania to become one of
insulation materials for the construction industry. At least 10 polyols produced at
the biggest Hydrogen Hubs in Europe.
Oltchim can be found in any apartment.
Our plan involves several phases, which will transform both our production
Our special polyol plant is designed with high-performance features in terms
systems, making them completely green,
of digitalization, energy efficiency, and
as well as the energy sources we use,
disposal of manufacturing waste. Its
turning into a country project worth over
annual production capacity will be the
EUR 1 billion. We are also innovative in
equivalent of 3,500 km of new 2x2m
terms of the chemical recycling we have
flexible mattresses. The new plant will benefit from the exceptional
been doing for several years now. In 2020 alone, we recycled over
work carried out by our team from the Polyols Centre for Advanced
1,000 tonnes of hydrochloric acid. We are one of the top three com-
Research and Development, which has an experience of over 40
panies in the EU that have such projects, along with giants Covestro
years of operation and cooperation with Romanian customers and
and Dow.
laboratories as well as international universities and research institutions.
It certainly is. We are specialised in polyols, and in order to stay in
The European Union has indicated that it will only support industries whose carbon footprint is diminished by investments in new technologies. What are Chimcomplex propose in this new context?
the lead, we’ve had to do constant research and innovation. Oltchim
We capture and reprocess over 5.400 tonnes of CO2 every year.
has always conducted and financed research in polyols, and we
Chimcomplex-Oltchim absorbs CO2 emitted by other industries and
have also designed and built polyether production facilities and
uses it in chemical processes alongside green (and newer) blue or
contributed to the attainment of over 80 patents, which allowed the
gray hydrogen. We will continue to invest in new technologies in
export of polyethers to over 43 countries in Europe, Asia, and Africa.
order to increase the CO2 mass we are able to capture and we will
Innovation projects and the flexibility of development teams are the
reprocess it into 12 finished products, through 6 production lines.Our
company's top strengths. Today, we have conducting research for
new plant will produce polyols which use CO2 as a raw material in or-
14 new patents. Just to give you an example, we are talking about
der to reduce carbon footprint, resulting in significant environmental
polyols from vegetable oils, i.e. polyols that use castor oil as a raw
benefits. In essence, we will be among the top 10 companies in the
material.
world that are manufacturing polyols without causing pollution.
Is chemistry research still being carried out in Romania?
www.business-review.eu Business Review | April 2021
MAIN STORY 15
The impact of COVID-19 on foreign investments and legal services Jörg Menzer, Partner, Head of Central and Eastern Europe (CEE) offices, and coordinator of the international clients practice at Noerr, talks to Business Review about the pandemic’s impact on foreign investors and legal service providers in Romania. By Anda Sebesi How hard has the COVID-19 crisis hit investors in Romania?
resulted from this crisis period
At the beginning of the pandemic,
truly made these relationships
many projects, investments, and
more intense.
were rather surprising, but they
business expansions were halted or postponed. It was crucial for impact on its current activity and
How have client needs changed over the past year based on your experience at Noerr?
to build the mechanisms it needed
First of all, we can say that legal
to deal with the situation. And
consulting has not been negatively
due to travel restrictions as well
affected by the crisis – in fact, I
as the need to move employees
could say the opposite has hap-
into home offices and strengthen
pened. We reacted very quickly,
digital backbones, national and
we established both a CEE and an
international investors started to
international coronavirus centre to
look inward.
deal with the latest legal changes,
every business to understand the
In the last few months, I’ve
and focused on the needs of our
seen renewed interest in projects that had been put on hold, new
clients. The full-service structure of Noerr helped a lot here. Our
projects, as well as opportunities arising from the crisis. Additionally,
clients needed a proactive approach during these times of constant
many companies have understood the opportunity provided by the
change, which includes the legal environment. Uncertainty and
crisis, whether it’s that of acquiring other businesses or setting up
unpredictability were suddenly key drivers for every business and
new business models using the drivers
our role was – and continues to be – to
of digital transformation.
deal with this unprecedented situation in an agile way.
What impact has the crisis had on legal service providers? Most law firms, including Noerr, quickly switched to partial or full remote
What lessons did you learn in the first year of the pandemic? The only predictable thing is the
working models. This was quite easy
unpredictable, so we must always be
to do for some – for example, Noerr
ready and willing to change. This is
moved 1,200 people online within 10
part of the Noerr culture and a driver of
days – while others struggled more. The
our 2025 strategy. Digitalization is defi-
real impact of this is still to be under-
nitely a must for mature companies.
stood, and it will end up shifting the
However, what we have learned is that
way legal services are provided in the
digitalization can be used to bring more
future. Furthermore, the way we inter-
flexibility in interactions with clients.
act with clients changed as Zoom and
Businesses must not shy away from
Teams meetings kicked in. Personal
new models and be ready to switch
discussions sometimes went even deeper and were easier to handle,
gears if necessary. Building talent remains a major goal, as we always
as consultants and clients looked beyond the professional relation-
have to rely on each other and build team spirit as digital communi-
ship and also saw the “human” side of it. These developments that
cation tools turn into business as usual.
www.business-review.eu Business Review | April 2021
16 MAIN STORY
Mihnea Radulescu, Vodafone: Our role goes far beyond providing traditional telecommunications services; we are now technology providers Technology has been a crucial element of the past year and the telecommunications infrastructure can now be seen as a utility service, along with power, water or gas. Business Review talked to Mihnea Radulescu, Business Director at Vodafone Romania, to find out about how technology and digital services are supporting the economy and how telecommunications operators’ role has been evolving towards technology providers. By Aurel Constantin The importance of technology has been made clear to us over the past year. How does digitalization contribute to economic recovery plans?
companies that have done better have
One of the things we’ve learned from
Some firms have acknowledged these
the coronavirus pandemic has been
realities. It is clear that small compa-
how important technology is in our
nies need help, especially now that it
day to day lives. It is easy to imagine
is becoming increasingly difficult for
how much more difficult this pandemic
them to survive. We now have a chance
would have been like 15 years ago,
to advance digitalization by using
without the connectivity and mod-
European funds, but also that it would
ern communications tools available
be great if absorption processes were
today. We can see that the telecom-
simplified.
been the ones with a higher degree of digitalization, such as restaurants that had more online sales than before.
Another important aspect is under-
munications sector has supported the economy just as much as energy or any
standing the term “digitalization.” We
other utilities have over the past year.
talk about it a lot, but different people
Hundreds of thousands of people have
and institutions have very different
been working from home, using vari-
interpretations of it. Many companies
ous levels of technology, which would
do not know what they need in terms
have been impossible without this IT&C
of digitalization. Some think they just
infrastructure. The crisis has opened many eyes, both in the general
need some equipment, others think they just need a website. At Vo-
population as well as among companies and public authorities, to the
dafone, we try to stand by them and explain what a minimum level
fact that the country’s technological capability has largely contrib-
of business digitalization means and how companies’ specific needs
uted to its economic resilience.
can be translated into the right digital solutions that bring real value
The crisis has confirmed what was already known from country
to their business.
reports, like the DESI Index, that technology adoption among Romanian companies is very low, which makes them vulnerable to the up to 250 employees. The worst situation is that of companies with
Digitalization is a process of transformation that the entire economy is currently going through. What are some concrete solutions that companies and institutions should adopt?
less than 50 employees, which are the most numerous in Romania.
Understanding digitalization requires education. There are differ-
Small businesses account for 52.7% of total value added and 65.8%
ent levels of education one may attain on this matter; some require
of employment in Romania. . But Romania ranks 27th among EU
short-term training, others involve a long-term effort. For the long
countries on the Integration of digital technology by businesses,
term, we need the education system to begin addressing these
well below the EU average. The rate of of SMEs selling online, for
needs. But for the short term, the responsibility falls more to tech-
instance, is 11%, according to DESI Index, while the European aver-
nology providers. There are about 700,000 companies in Romania,
age is 18 percent.
and Vodafone has a significant share of the market. We do talk to our
economic crisis. Those most exposed are SMEs, i.e. companies with
A digital economy is very much based on the digitalization of
customers about digitalization and we help them understand what
these small companies, including the adoption of minimal technol-
they need, so we contribute to raising the level of education around
ogy solutions like a website or an online shop. During this crisis,
this matter. Choosing the best approach to implementation is anoth-
www.business-review.eu Business Review | April 2021
er story, but there are funds available for digitalization consulting. Speaking of digital solutions, we should also acknowledge the differences between the private and public sectors. In the public sector, we should first look at the different subsec-
MAIN STORY 17 operators have made great efforts to bring equipment and solutions to these families. 250,000 tablets were delivered following the tender coordinated by the Education Ministry, and Vodafone Romania was one of the providers, with more than 100,000 tablets delivered.
tors. Apart from a few institutions, it is a well-known fact that most
But it was not an easy thing to do within a very tight deadline and
government bodies are very far away from what we might call digita-
considering the huge demand for devices during this period,. And it
lization. Even though some progress has been made, there is a whole
is not enough; Digital content is almost non-existent, so the whole
layer that’s either missing or is unfit for the needs of both institu-
system must be completely reformed to be brought into the present.
tions and citizens. I would call that layer ICT (information and com-
There are digital solutions that could bridge this gap, but they are
munication technology), to include everything that has to do with
not enough to create a modern education system. And if things don't
platforms, servers, data centres, software, cloud, security solutions,
change soon, entire generations of children will suffer.
and others. Let's take the Health Ministry as an example: it lacks a well-developed, centralised system that could help it communicate with other institutions about the population’s health.
Does the technology industry have solutions for all these social and economic problems? Technology and digital solutions are already here and there is
How much do we need digitalization in sectors like health and education, for example?
enough expertise on the market to implement them effectively. Let’s
We’re talking about telemedicine, 5G connectivity, and remote sur-
interactions with citizens mostly take place offline today, with only
gery – these technology solutions are available and could be imple-
a few positive examples of online services. Administrations can
mented. However, there are certain pre-requisites that would make
use sensors for smart lighting or monitoring waste collection and
take smart city and smart administration policies as an example:
these solutions work effectively, like access to the patient’s full medical history. This modern database layer needs to be created with strong security and access controls, with accurate data about patients and their medical history. Today, a doctor can examine a patient remotely, by checking his general state, but he knows nothing else about the patient unless they have been his or her doctor for a long time, because the full medical history isn’t available These data would provide a full image of the patient's condition. Besides that, some simple equipment can also be connected to the system, such as bracelets
recycling, for example. On the traffic management side, there are
that take the patient’s pulse and blood pressure and automatically
platforms available that use artificial intelligence. To streamline
send the information to the doctor.
communication with citizens, government agencies can adopt
Furthermore, the patient must be prescribed a treatment. But
digital solutions that we have implemented for private clients in
that cannot be done without all their medical records, because
Romania. At the same time, telecommunications providers can play
the doctor cannot prescribe something without knowing what the
a more active role in the digitalization process. In Vodafone’s case,
patient might be sensitive to. Also, how does the patient get hold
we’ve no longer been just a telecommunications provider for old
of the prescription? Without an ICT infrastructure behind it, it is
customers for quite a while now. They are now buying security, IoT,
impossible. So we need reform in order for digitalization to be imple-
and automation solutions from us. Of course, telecommunications
mented effectively. We cannot go straight from carbonless paper to
remain the backbone of our services, but we’re doing much more
electronically-signed prescriptions.
today. We aim to bring value to the client's business, to offer solu-
If we keep our focus on reforms, we can go a long way in a short
tions that increase their profitability and reduce their costs. We have
amount of time. There is a solution for any problem when it comes
implemented solutions in sectors like retail, logistics, agriculture,
to digitalization and technology, but we need to put that basic infra-
and fleet management; all this experience and know-how allow us to
structure in place.
play an important role in our clients’ digitalization journeys.
It is much harder to rehabilitate the Romanian railway network
We will launch some new tools to provide assistance to compa-
than to digitalize key sectors like healthcare or education. But we
nies in the digitalization process. We started with big clients, for
need to do it right now, to have the willingness to do it. If we don’t
whom we’ve customised a lot of solutions, but now we are moving
start now, it will end up taking much longer. Last year we saw many
towards a standardisation that will allow us to offer similar solutions
children being unable to attend online education. Communications
to smaller companies as well.
www.business-review.eu Business Review | April 2021
18 COVER STORY
Dacia seeking to democratise electric mobility with Spring model Mihai Bordeanu, the Managing Director of the Dacia brand and CEO of Automobile Dacia, tells Business Review why the automotive market is a driving force for the local economy and how the company’s first fully electric car will impact both the local and the European markets. By Anda Sebesi The automotive market is a star sector in Romania and a major driver of economic growth. How has Dacia contributed to this growth in recent years?
price. This is true not just for
The automotive industry is very
We can therefore say that Dacia
important for Romania, as it rep-
is democratising electric mobil-
resents 14 percent of GDP and 26
ity, making it accessible for all. It
percent of exports. It is a big part
is more than a change; it is a real
of the Romanian economy. Since
revolution, the third one in the
2000, Groupe Renault has invested
history of the brand, after the
over EUR 3 billion in Romania for
launch of the Logan model in 2004
the development of new products
and the Duster in 2010.
Romania, but for all the markets where the model will be sold. Dacia Spring will be the most affordable electric vehicle in Europe.
such as cars, engines, and gearboxes, as well as in improvements carmaker has improved working
How will this launch change customers’ perception of the Dacia brand, in Romania and abroad?
conditions and quality, boosted
Dacia has already evolved enor-
automation, optimised costs, and
mously since the launch of the
integrated new technologies at the
first-generation Logan 16 years
Mioveni plant in Arges county. We
ago. From initially being perceived
to the manufacturing process. The
operate inside a competitive indus-
as a low-cost brand, Dacia has
try which evolves extremely rapidly. The challenges generated by the
come to illustrate the concept of a “smart purchase.” The philosophy
health crisis have motivated us to constantly prepare for the future
of the brand is to offer simple, spacious, reliable, and robust vehicles
by adapting to the new normal and being agile. Romanian authori-
with no unnecessary frills, at the best prices on the market. Dacia
ties have responded well and have helped the car industry through
Spring therefore embodies the brand’s DNA. It is a car that com-
concrete measures: the car fleet renewal programmes ("Rabla" and
bines simplicity, reliability, and affordability. But that’s not all – with
"Rabla Plus"), financial aid for technical unemployment, kurzarbeit
Spring, Dacia proves that an electric vehicle is not necessarily a niche
options, and state aid for companies. Dacia cars are not only made in
product. The advertising campaign created for the launch illustrates
Romania; they are very well made in Romania.
yet another side of our philosophy: the fact that a Dacia car can be both essential and fun.
In late March, Dacia opened online pre-orders for the Comfort Plus version of its first electric car, the Dacia Spring. What does this launch mean for the Romanian market?
How has Dacia adapted to the pandemic?
Indeed, Dacia Spring pre-orders opened online on March 20, the
and the health of all our employees, together with preserving jobs.
first official day of spring. There were more than 4,000 pre-orders
Besides the industrial site, where activity was suspended during
recorded just in the first two days. And we are talking about people
the state of emergency last year, all our other activities carried on
who haven’t even seen the car in showrooms yet. There is a very
uninterrupted, and teleworking was encouraged. We were among
simple explanation for that: with Spring, Dacia is offering an electric
the first industrialists in the country to resume operations after the
urban vehicle that meets customers’ real needs at an unbeatable
lockdown by taking the necessary measures.
From the beginning of the crisis, our priority has been the safety
www.business-review.eu Business Review | April 2021
COVER STORY 19
Top 10 largest industrial parks under construction in Romania Considered to be the star segment of the real estate industry right now, the industrial market continues its dynamic development, with a national vacancy rate of only 8 percent. Romania’s modern industrial spaces stock exceeded the threshold of 5 million square metres in 2020, with 570,000 sqm delivered last year alone, according to CBRE Research.
A
By Anda Sebesi In addition, the western/
round 65 percent of the industrial space de-
north-western region has man-
livered in 2020 was in
aged to pre-lease 75 percent of
Bucharest, which remains Ro-
the supply that is still under
mania’s largest industrial hub,
construction. “As for the
while the other 35 percent was
nature of the activities that
split among regional cities such
will be carried out by future
as Deva, Oradea, Sibiu, and oth-
occupiers of the pre-leased
ers. But how is 2021 looking in
spaces, based on the available
terms of new projects?
data, we know that over half of the space (54 percent) has
INDUSTRIAL DYNAMICS: 400,000 SQM UNDER CONSTRUCTION
been contracted for distribu-
Top developers already have
of the total pre-leased space,
around 400,000 sqm of indus-
while production and logistics
trial spaces under construction
jointly claimed 6 percent of
tion purposes. Next in line was storage, covering 40 percent
the new supply. As distribu-
at the moment, which will increase the country’s modern stock to approximately 5.5 million
tion and storage are the main drivers of demand after a year when
sqm by the end of the year, based on CBRE data. “2021 meets all
e-commerce had a tremendous boost, they’re only strengthening the
the prerequisites to be an excellent year for the industrial property
trend that started taking shape at the beginning of 2020, contributing
market in Romania, after 2020 turned out to be a record year, with
to the new industrial horizon,” said Daniela Gavril, Head of Research
over 930,000 sqm traded. Developers are investing in different areas
at CBRE Romania.
of the country, from the well-known Timis area to Brasov and Bacau,
Last year, 70 percent of total demand was concentrated around
which are beginning to attract growing interest because of quality
Bucharest, while the western/north-western region attracted 16
land and labour force availability,” says Razvan Iorgu, Managing
percent of the total leased area. The main operation performed by
Director at CBRE Romania.
tenants who leased industrial spaces in this region was distribu-
With an overall vacancy rate slightly below 40 percent, the proj-
tion, as half of the total area was leased for this purpose, followed
ects in the pipeline show a higher level of maturity for the Romanian
by logistics with 20 percent and production with 19 percent. Storage
industrial market, while developers have the confidence to integrate
and other types of operations jointly accounted for 12 percent of the
a speculative element into their projects as well, following a record
total contracted area. Even though Romania has seen rapid develop-
year in terms of demand. 64 percent of the upcoming new supply
ment of its industrial market over the last five years, having doubled
will be built in regional cities, which are becoming key locations on
its stock during this period, our country remains below the regional
the logistics map. The western/north-western region of the country
average, with only 260 sqm of industrial space per thousand inhabit-
has attracted the largest share of developments, namely 52 percent,
ants. By contrast, Poland has an average of 510 sqm per thousand
followed by the southern region with 34 percent and the central area
inhabitants, while the Czech Republic reaches 840 sqm. In the next
with 10 percent, while the eastern region will only get 4 percent of
5 years, CBRE data indicate an increase of over 50 percent in the
the total, according to CBRE Research.
industrial spaces stock, up to 8 million sqm.
www.business-review.eu Business Review | April 2021
20 MAIN STORY
Online and offline shopping will come together as one Gianluca Martora, the CEO of Winmarkt Group, the Romanian subsidiary of Immobiliare Grande Distribuzione (IGD), tells Business Review about how the company has been coping with the pandemic and discusses future trends in the retail sector. By Anda Sebesi What is Winmarkt’s vision for 2021 considering the difficult situation we are all currently facing?
were not comparable to those
Even though 2020 was the most
centres and they focused more on
difficult year in the history of our
planned shopping than on impulse
Group, both in Romania and in
shopping. At the same time, the
Italy, Winmarkt and its group (IGD)
traffic reductions were within
are ready to grow again in 2021. In
the limits of our estimates and
fact, our main drivers in 2021 are
expectations. We are clearly aware
recovering lost occupancy rates,
that the pandemic has brought
consolidating strategic tenants,
deep changes to both shopping
finding new opportunities, new
experiences and consumer habits,
tenants, new clusters, and new
and we need to rethink the way we
use destinations. We are counting
communicate with our custom-
on a scenario of gradual economic
ers. The significant operational
recovery and increased consump-
limitations we experienced in 2020
tion over the course of 2021.
provided us with a clear view of
recorded during the same periods of the previous year. However, people spent less time in shopping
the fact that people appreciate
How will the pandemic change shopping centres’ business practices and what will be the top trends from this perspective? In the future, we will need to live with e-commerce: our response
being able to shop in a safe, highlycontrolled environment, with a clear set of rules to be followed.
was and will continue to be improving our shopping centres as places
Can you make a comparison between downtown retail – Winmarkt – and uptown retail represented by big malls?
that provide experiences and services. The entire sector needs to
Big shopping malls are often located in large and medium-sized
understand that these changes must be embraced right now. Online
cities with a wider offer of commercial brands and a focus on food
shopping comes with the advantage of speed and convenience, while
court and entertainment services. And as we all know, these were
offline shopping provides a customer experience that cannot be
the retail structures that were most affected by restrictions, as they
totally replaced by online experiences. We will no longer view offline
were among the most critical clusters. On the other hand, we have
and online shopping as separate; they will come together as one. The
downtown or proximity retail – the Winmarkt network comprises 14
convergence between offline and online retail will be supported by
shopping centres and an office building offering a balanced tenant
technological advances.
mix of international, national, and local brands. "We are downtown" has always been our concept. Our shopping centres cover medium
What can you tell us about the behaviour of local Winmarkt network consumers?
to small surfaces that allow flexible management. We have a variey
In the 13 medium size-cities where Winmarkt operates, the number
because of our format. At the moment, the Group is focused on the
of COVID-19 cases was not as high as it was in Bucharest, so custom-
development of its portfolio, and the pandemic has not changed this
ers reacted differently. When some of the restrictions were lifted, we
target. Proximity retail, street trade, and downtown retail activities –
recorded encouraging flows and satisfactory sales for most of our
including Winmarkt – were less affected by the decrease in customer
merchandise mix. We saw customers gradually returning to shop-
traffic and restrictions, and I hope this will facilitate the recovery of
ping centres, especially in periods with sales, even though numbers
the main economic indicators in the short to medium term.
of non-food stores, and food courts have never been a priority for us,
www.business-review.eu Business Review | April 2021 May 2016
COVER BUSINESS STORY 21 14
Top 3 barriers to international expansion for Romanian firms in 2021 Over the past few years, Romanian companies have started expanding overseas, but certain constraints are expected to influence such scaleup strategies in 2021. Doing business regionally and globally brings up unique challenges for Romanian founders, but it can be an opportunity for growth as well. By Claudiu Vrinceanu
EXPORT PROGRAMMES ARE FROZEN An important challenge for Romanian companies is the fact that the government halted financing for the export promotion and company internationalisation programmes for this year. Let's not forget that in 2020, Romania's exports decreased by more than 10 percent, while its trade balance deficit increased by
For many Romanian entrepreneurs, the way they are represented at international fairs is crucial
about EUR 1 billion. Stopping the internationalisation programme, even temporarily, impacts several
FINANCING
go global. Romanian startups have raised USD
business sectors. Let's just take the example
Access to finance is a basic need of Roma-
1.3 billion in investments since 2013.
of the machine construction industry, a sector
nian companies in the process of expanding
that sells 95 percent of its products on foreign
abroad. The lack of capital is thus a major
LACK OF INTERNATIONAL EVENTS
markets and represents 46 percent of the
barrier to internationalisation for 41 percent
While in-person events will likely start to
value of Romanian exports.
of those who are looking to expand abroad,
come back in the second half of 2021, virtual
but also for 29 percent of Romanian entre-
events will continue to provide strong op-
way they are represented at international fairs
preneurs who have already done so. In terms
portunities for entrepreneurs for at least
is crucial. In fact, there are countries where
of financing in 2021, the vast majority of
another year. The existence of relationships
not being supported by a representative of
Romanian banks expect lending standards re-
and connections inside the target market was
your own government means that you are
lated to company loans to remain unchanged.
a basic requirement for 81 percent of Roma-
not open to doing business. In the future,
However, some banks believe that conditions
nian entrepreneurs when they expanded
participating in international fairs under the
will be tightened for SMEs. Meanwhile, we’ve
abroad. Furthermore, participating in trade
national flag, and not just as individual organ-
seen the launch of new venture capital funds,
fairs abroad was a determining factor in the
isations, will be very important for Romanian
and others are set to invest in the Romanian
internationalisation process for 54 percent of
firms.
technology sector, which has the potential to
business owners.
For many Romanian entrepreneurs, the
www.business-review.eu Business Review | April 2021
22 FDI
Romania’s FDI figures in Q1 2021: good news and trends Even if the decreasing flow of foreign direct investment (FDI) is becoming visible at the statistical level, there is also some good economic news that can make us optimistic about attracting new greenfield investments to Romania. Romania’s FDI level plunged by 70 percent year-on-year in January-February, more than it did in 2020 (60 percent). By Claudiu Vrinceanu
Barcelona office almost 2 years ago. The new campus will be the company’s first in Eastern Europe, where it expects to employ upwards of 100 people within its first year of operation.
STATE AID FOR FOREIGN INVESTORS Another piece of good news is the fact that Romania can offer the best facilities to foreign companies that want to make investments in 2021, through state aid. In 2020, the government approved state aid for 30 projects with a total investment value of over EUR 500 million. The value of state aid exceeded EUR 170 million for projects approved last year. As a result of these investments, about 3,400 jobs will be created. Finding ways to attract investors, especially in states with an acute need for foreign capital for development like Romania, should be a major element of public policy in this period of economic recovery. Unlike the Romania can offer the best facilities to foreign companies that want to make investments in 2021, through state aid
one in 2008, the current economic crisis is generated by the global health context, so we cannot refer back to measures taken at that time or expect market players to see the same kind of recovery.
NEW FDI PROJECTS
Hella group, with global business worth EUR
Several new foreign investment projects were
5.8 billion, will hire 100 people in the com-
Amazon announced that was on track
carried out in Romania in the first quarter.
ing period at its facility in Timisoara, which
to add another 500 permanent roles by the
For example, Singapore-based BPO company
will thus become the largest administra-
end of 2021 across its sites and that it was
TDCX opened an office in Bucharest, Amazon
tive centre of Hella’s international network.
planning to open a new office in Timisoara
announced three new offices in Romania
The company currently has a total of 4,200
and two new ones in Iasi. Amazon has been
which will create 500 jobs, and more good
employees across its three research and de-
investing in Romania for many years now. It
news came from the automotive industry,
velopment centres, three factories, and one
opened its first office in Romania in 2005 and
with Hella announcing that it had opened a
administrative centre in Craiova, Lugoj, Arad,
has since invested more than EUR 100 million
new development centre in the country.
and Timisoara.
here, developing next generation technolo-
Auto component manufacturer Hella Romania, the local subsidiary of the German
TDCX opened its second European campus in Bucharest following the launch of its
gies and providing an unrivalled customer experience to customers around the world.
www.business-review.eu Business Review | April 2021 May 2016
COVER STORY TECH 23 14
The era of audio creators: how expats can ride the Clubhouse frenzy Two new types of economies are developing during this period, and the pandemic is only accelerating their growth: the Creator (Passion) Economy and the Audio Economy, based on voice content. Expat managers in Romania can benefit from new social platforms to communicate more efficiently with the local business community. By Claudiu Vrinceanu Fiverr and Upwork, to connect freelancers to potential customers. Atelier Ventures, a USD 13 million venture capital fund, has been launched to only invest in startups in the "Passion Economy" sector. The Clubhouse platform is also growing thanks to its exclusivity element and the FOMO feeling induced by the fact that it’s only available on iOS and that access is invite-based. According to experts, Clubhouse creates a new type of content, through which the guest speaker brings together content creators who add value to the discussion, resulting in a new type of influencers. Companies and managers should join the Clubhouse platform and create content there, as it is a space that can generate strong links between users. The application is likely to go
W
Romania has tens of thousands of Clubhouse users
mainstream in the next 12 months, i.e. two years after launch. Romania has tens of thousands of Club-
e are on the verge of a creative
to allow content creators to earn money
explosion, fuelled by the fact that
directly from their audiences. The newsletter
house users – perhaps as many as 100,000
individuals, content creators, as
platform Substack has reached the threshold
– but what’s more important is how many
well as entrepreneurs and investors who de-
of 500,000 paying subscribers and the top
of these users are constantly active. Users
velop content-based businesses have a great
10 content creators in the community have
appreciate the utility of the application, the
chance to generate wealth.
generated total revenues of over 15 million
special type of access it offers, the "live"
dollars. There are only a few dozen Romanian
factor, as well as the fact that most of the
newsletters on this platform, but there is
content is authentic. Expats in Romania,
great growth potential.
managers and entrepreneurs, as well as Ro-
THE FOLLOWING PROJECTS EMERGED IN THE FIRST MONTHS OF 2021: Clubhouse is an audio-based social net-
Meanwhile, Twitter has bought the Revue
manian specialists in various fields must all
working platform where users can listen
newsletter platform. However, the Twitter
become more authentic! Consumers are now
to conversations and interviews on a wide
platform has not been very successful in
consuming business content everywhere,
range of topics. It has raised a USD 1 billion
Romania in terms of adoption. LinkedIn is
whether they’re on the move, at the office or
Series B investment and announced plans
currently developing Marketplaces, a rival to
in their living rooms.
www.business-review.eu Business Review | April 2021
24 WORKING ROMANIA
#futureofwork: Companies seeking new ways to improve employee experience The #futureofwork was discussed during the Spring 2021 edition of Business Review’s Working Romania conference, which welcomed top HR professionals and business leaders. One year into the pandemic, half of all the employees in the country are still working from home, and we are heading towards a hybrid working model in the future. What’s most important to employers today is keeping employees healthy – both mentally and physically – and engaged with their work.
CARMEN DUMITRACHE, TELEKOM
ANDREEA VOINEA, BCR
“One of the first things we did as an employer
“The COVID-19 crisis has helped us improve
when the pandemic started was to create a
our services and become more accessible
programme called Healthy Me, which was
for users. During this period, as forced by
made available to all team members and ad-
circumstances, we’ve also explored new
dressed all areas that we knew were impor-
business models such as the remote
tant for the management of emotions and
contact centre and remote advisory,
knowledge. It included a fitness part, with
which have been well received and that we
physical therapy, yoga, and others, but also a
will expand in the future. Now, in George
Healthy Lead part for managers and leaders,
digital application, we are working to extend
to help them handle the changes caused by
all the retail facilities we have to the corpo-
the current situation.”
rate area."
VERONICA CRISTEA NANU, HUAWEI ROMANIA
RADU MILOS, ELYSIAN SOFTWARE “The pandemic brought a flexible way of
CRISTINA MANCAS, SCHNEIDER ELECTRIC
“We are hearing more and more talk about
working, a hybrid between home and office
“Open Talent Market is a platform that all
digitalization and I think it is important to un-
work, which we support through the Tassis
employees can join to connect with mentors
derstand what it means to us. We must start
application, a collaboration platform which al-
from all over the Schneider network in order
from the premise that digitalization translates
lows you to manage both the team that works
to develop skills they may not have. They can
into better quality of life. And right now, all
from the office as well as the people who work
get involved in local or global projects and
big market players and employers have the
from home. It provides better options for col-
apply for full-time roles. At the South East
opportunity to use digital tools to benefit the
laboration between all employees. Further-
Europe level, the area I manage, Romania is in
entire community. This is not a road you can
more, it also helps set boundaries between
the lead, as in less than a year our adoption of
take alone, especially with these pandemic
work and home, in order to avoid this overlap
this platform has reached 78 percent, accord-
challenges we are all facing.”
between free time and working hours.”
ing to the latest report.”
By Aurel Constantin
www.business-review.eu Business Review | April 2021 May 2016
WORKING COVER ROMANIA STORY 14 25
DOINA FILIP, ORANGE ROMANIA
ANTONIU PANAIT, VASTINT
GEORGIANA ANDREI, REGINA MARIA
“Wellbeing programmes can no longer be
“In order to safeguard employee health,
“Over the past year, we have been less con-
developed successfully and with added value
fresh air is important, and so is the height
cerned with prevention and have only seen
by the compensation and benefits team
of rooms, which should ensure a large
a doctor when we really needed to. I saw
alone. I believe that mixed teams are better
volume of air. Buildings in our portfolio
a study that found that there were 40,000
to co-create such programmes successfully.
have a standard of 3 metres of free space
fewer cancer diagnoses in Romania in 2020.
The development strategy for wellbeing pro-
between the floor and the false ceiling.
This means that there are at least 40,000
grammes is based on three blocks. The first is
We’ve also identified the points where there
people out there who don’t know that they
data, the second is in-depth research carried
are high levels of human contact in our
are sick. As a result, we have seen companies
out by HR people, and the third is employee
buildings in order to reduce virus transmis-
putting more emphasis on prevention and
feedback. It is important to have direct
sion risk. In addition to nebulisation, we have
trying to raise awareness about it, as well as
discussions with all team members, because
also applied materials that minimise trans-
introducing health screening programmes for
they are colleagues, not just employees.”
mission.”
their employees.”
IRENA MOOZOVA, DIRECTOR FOR EQUALITY AND UNION CITIZENSHIP AT THE EUROPEAN COMMISSION
ADRIAN DICA, VERTIV
CRISTINA PATROESCU, ADECCO
“Emails are problematic when working from
“Organisations should start looking into the
home. Today, many employees are develop-
post-pandemic era of work, and keep a few
“The workforce of tomorrow is expecting
ing a phobia of emails. We often find our-
aspects in mind in the process.
more from employers in terms of inclusion
selves unable to finish a task because we need
One is the business strategy, finding out
and fairness, and pay transparency is good
to respond to countless emails. It is therefore
what they can do to mobilise the entire or-
for business. Companies that will adopt these
important to decide what is relevant and
ganisation to achieve certain goals.
measures will be in a good position to attract
what can wait. At the organisational level, we
Then come leadership teams, which must
top talents and be leaders of the future. I’ll
should focus on better ways to plan emails,
give employees autonomy, but make sure
also stress that progress in terms of gender
notifications. A very good solution is to have
they don’t lose control. Third is the culture
equality is a joint responsibility. To generate
training sessions of 1-2 hours every 6 months
of wellbeing, which can make people who
change and speed up progress, we must work
for employees to learn how to manage these
are working from home feel cared for and
together.”
aspects.”
appreciated.”
www.business-review.eu Business Review | April 2021
26 HR
Workactions driving optimism and creativity as pandemic continues The first digital nomad village in Europe opened on the tiny volcanic island of Madeira, one of the two autonomous regions of Portugal. Digital Nomads Madeira launched on February 1 and it aims to attract digital nomads – people who travel the world while they work remotely. The project has been developed by the Regional Government of Madeira, through Startup Madeira, and with the help of a digital nomad consultant. By Romanita Oprea
Iunieta Sandu, NO.MAD Talks
T
Thomas Kolster, Mr Goodvertising
he pandemic and the drastic restric-
online sessions. Of course, they need to make
they were a bit nervous at first, they were
tions imposed by most countries have
sure that proper safety measures are in place.
surprised to see that productivity actually
forced people to change the way they
“With the increasing burden and boredom
increased by 10 percent. Their approach
interact and behave and, ultimately, the way
of working from home and the consistent
hasn’t changed much, as they were already
they work and feel about their workplace,
anxiety and stress around job security, some
open to the idea of having employees work
their job, and themselves. Once restrictions
millennials and post-millennials are willing
from home once in a while. Now, they believe
are lifted in some countries and areas, people
to take workcations in the hills, a farmhouse
that employees can be given more freedom
will be able to take remote working to another
or even move to the outskirts of a city for
to choose where they want to work, as they
level, which has led to the term “workaction”
some time, to take a break from their home
know best what helps their productivity. “The
gaining more and more popularity and even
office and daily routine,” writes livemint.
pandemic has truly changed the way we see
being used as the newest HR tool. Not only
com. According to HR Technologist, worka-
traditional offices. I’ve seen a lot of compa-
do employees prefer to work from different
tions have emerged as a popular engagement
nies adopting the hybrid approach to working
locations than their homes (renting a place
strategy for organisations in the US and
rather than going back to the office-only ap-
in another city or country, in the middle of
Europe as collaboration tools, while advance-
proach. While some are still the most produc-
nature, or even in cities with lower rates of in-
ments in workplace productivity technologies
tive at the office, some are really productive
fection), but HR teams in companies are also
have made it easier for employees to stay in
in the comfort of their own home. As long as
looking at it as a new wellbeing tool. By taking
the loop on work while enjoying time off in
there’s balance, the hybrid approach could
time away from overly-used spaces at home
remote locales.
be beneficial to some companies,” Teletin
or the surrounding areas, employees become
explained. So far at Grapefruit, no employees
more productive, efficient, and creative.
MORE THAN AN HR TOOL
have asked for a workcation. But if a request
Moreover, companies could also send groups
According to Anca Teletin, chief operations
were to come from an employee, Teletin
of employees on workactions together, result-
officer at Grapefruit, once the whole team
states that their approach would be as open as
ing in better brainstorming and ideas than
began working from home, even though
usual. “We’ve always been flexible and under-
www.business-review.eu Business Review | April 2021 May 2016
COVER STORY HR 27 14
standing with our colleagues. From flexible
Creator and NO.MAD Talks Founder, recently
here. When you do business, you have to
working hours for parents to monthly WFH
returned from a productive workaction in
travel. I do see myself as a Dane, a European,
days (before the pandemic), we always sought
Romania. She has been working as a free-
and if the situation allows me to travel to
ways to make our employees’ work environ-
lancer for four years now and, during all this
certain countries where I do have business
ment more enjoyable and flexible. Therefore,
time, she has created a habit of being able to
interests that I can combine with a little bit of
work from different spaces, as
private relaxation, then I would definitely go,”
well as different countries and
Thomas said.
cities. At the end of February, she
Travelling turned out to be a very good
went to Casa Domestic, a cozy
decision, as it brought him inspiration and
house designed for people who
made him happy to be around people and
want a change of vibe while they
meet new ones. “We’ve all been through
continue to work. The house is
challenging times, and we haven’t been able
located in Vistea de Jos, a small
to connect with new people. It was an op-
village near the town of Fagaras.
portunity for me to exercise more. I was stuck
“For me personally it was a blast
in Europe during the winter and wasn’t able
– it felt so refreshing to forget
to get too much sun, so now I feel refreshed
about the traffic noise, the smell
and inspired, and extremely happy to be able
of the city, and all the flood of
to continue to do business for South Africa,
news and information online.
which is crucial for the local economy,” added
I had much more focus there. I
the Goodvertising and Hero Trap writer.
chose the location with the help
Moreover, he agrees with Cezar Dumitru’s
we will keep an open mind towards workca-
of a friend, who made this recommendation.
opinion that workactions can become an
tions as well, but we’ll wait until we receive
I plan to go work in a new place or city every
important trend in the future. While in South
this type of request from our employees,”
month, even if just for a few days. Whenever
Africa, he met people from many sectors
added the Grapefruit representative.
I do this, I feel more creative and productive
including banking, insurance or advertising.,
and I always come home with more ideas and
also in workactions. “It’s a good way to show
travel bloggers in Romania – Imperator Travel
renewed energy. When I change my work-
that you treasure your employees, to give
– who also has a background of working in
place, motivation comes faster. Of course,
them renewed energy. It’s a very difficult time
multinationals in roles that involved a lot
I also hope to travel and work abroad,” said
for all of us and people don’t need to be in an
of travelling and remote working, believes
Iunieta.
Cezar Dumitru, one of the most influential
that workactions are not necessarily an HR
Some people may choose
tool, but a health tool. “Ideally, a healthy
to go on workactions in other
environment should be a mix of face-to-face
countries, as did Thomas Kolster
interactions (which obviously help a lot) and
recently by going to South Africa.
away time, obviously when the nature of
He said he’d always had a special
the business makes this possible. This is a
relationship with South Africa,
worldwide trend and Romania is not exclud-
as it’s the place where he wrote
ed. In some industries like creative or IT, the
his first book, which brought him
trend started before the pandemic, but the
international recognition in the
pandemic forced even companies that had
advertising world – Goodvertis-
considered this practice a no-no to take it into
ing. “I have colleagues who are
consideration, even for the post-pandemic
from here and quite a long his-
world. After this year of work-aways and the
tory with the place. And for me,
advent of high-speed 5G internet networks,
this time around was combining
the workplace of the future will be a mix of
a couple of business meetings,
working from home and working from office.
catching up with colleagues, as
At the end of the day, there are significant
well as having the opportunity
cost savings involved, especially in terms
to relax. Before deciding to come here I first
office every day; it’s a great opportunity for
of space rentals and business travel,” Cezar
read some recent news, then I checked with
employees, as long as they do it safely, and
Dumitru explained.
the hospitals here and obviously looked at the
obviously they must show respect for their
pandemic rates and the lockdown situation
own country by following rules and regula-
PERSONAL EXPERIENCES
in the country. They were all considerations
tions, and do the same in the countries they
Iunieta Sandu, Freelance PR & Content
that I was thinking of when I was went down
visit,” Thomas added.
www.business-review.eu Business Review | April 2021
28 ENTREPRENEURSHIP
In the age of remote work, location still matters for startups In the year since the coronavirus pandemic has taken the world by storm, remote work has become mainstream for office-based employees in large cities, with the comfort of their homes becoming more important than the flashy facilities of modern office spaces. But location still matters for entrepreneurs trying to build up their startups, find new talent, and access a large pool of potential customers. By Ovidiu Posirca can incentivise founders to set up base here? These factors are especially relevant considering that most EU countries have turned entrepreneurial attractiveness into a national strategy (the Baltics, France and Germany, Iberian, and Scandinavian countries), with Croatia even replicating the Estonian eresidency to attract ‘work from anywhere’ freelancers and entrepreneurs,” Paltineanu tells BR. He adds that Romania’s IT skills, good quality-cost ratio, and the relatively untapped potential demand in various verticals are well-known, but while they are all necessary factors, they are not sufficient to ensure the attractiveness of a jurisdiction in a highly competitive world. For instance, UiPath, the robotic process automation (RPA) startup valued at USD 25 billion, was founded in Bucharest back in 2005 as a 10-people team. The city continues to attract people looking for higher pay and Bucharest has a strong edge as a university and research hub with campuses in all fields
better job opportunities. Nearly a quarter of SMEs and large companies are in the Bucha-
B
Romanian capital is the main startup hub,
vanced ecosystem for entrepreneurs compris-
business centres provide certain advan-
while Cluj-Napoca and Timisoara (both in
ing a community of angel investors, accelera-
tages in finding partners, collaborators, and
the west of the country) are trailing behind,
tion programmes, venture capital, and private
avenues for growth, and that fits the profile
according to data from romanianstartups.
equity funds, including corporate-backed
of startups, says Innovation Labs co-founder
com. The portal has 322 startups registered in
entrepreneurial programmes. Cluj-Napoca
Razvan Rughinis. Depending on the business
Bucharest, while 80 are based in Cluj-Napoca
has also built a strong profile as a destination
niche, proximity to users and customers may
and 29 in Timisoara.
for tech-oriented startups.
also be a factor.
rest-Ilfov area, whose GDP stands at more
ucharest and large regional cities in
of I H C, a group that invests in VCs and early-
that EUR 55 billion, according to Eurostat, the
Romania are the most popular loca-
stage startups.
statistics office of the EU.
tions for launching a startup. The
For instance, Bucharest has the most ad-
“Bucharest is a cool city for an expat or a
Cities that are university hubs and vibrant
“Bucharest has clearly become a go-to city
BUCHAREST WANTS YOUR STARTUP
digital nomad, but is it sufficiently friendly to
for entrepreneurs, despite some lags in its
Location absolutely matters for a startup, be-
entrepreneurs from the regulatory, judicial,
evolution. I think the most important area
lieves Ciprian Paltineanu, managing partner
accounting, and fiscal standpoints that it
where improvement should accelerate is
www.business-review.eu Business Review | April 2021 May 2016
ENTREPRENEURSHIP COVER STORY 14 29
access to data, both as open data and as ano-
sized firms (SMEs). The state aid schemes are
moving in sync with innovation, with great
nymised information, from public authorities
financed from EU sources and SMEs can use
care not to stunt it, while of course ensuring
and institutions. It has a strong edge as a uni-
the money for working capital and invest-
stability; the legal system is pro-business,
versity and research hub with campuses in all
ments. However, the third support measure
with special focus on reducing red tape
fields, as well as a strong business centre that
– focusing on investments – was frozen due to
and supporting SMEs in particular; on the
energises a vibrant innovation ecosystem.
corruption allegations, while from the second
accounting and fiscal side, small businesses
measure,
report accounts and file taxes mostly online,
which sup-
on an expedited process with benefit of the
plied work-
doubt as the driving concept; last but not
ing capital,
least, the tax advantages for funding and
only a little
angel investing provide a great incentive for
over 3,000
smart private money to fund innovation and
of the 16,726
growth,” says the managing director of I H C.
accepted
In Bucharest, mayor Nicusor Dan pledged
firms got
to create an entrepreneurial culture among
the money.
young people living in the city and to con-
Meanwhile, PM
vince young entrepreneurs from other cities to start their companies here.
Florin Citu said that the entrepre-
EUROPE COMMANDS EMERGING STARTUP ECOSYSTEM
neur was
Bucharest has been acknowledged as one of
“a hero”
the emerging global ecosystems, ahead of cit-
and that his
ies like Prague, Marseille, and Luxembourg.
govern-
The Romanian capital got a score of 8 out of
ment aimed
10 for performance, which counts the valua-
to remove
tions and the overall success of entrepreneurs
The city offers strong connectivity and high
the red tape that hampers the development
availability of qualified workforce, particu-
of the private sector. The PM suggested that
larly in technology,” Runghinis tells BR.
Romania needs more entrepreneurs with the
countries and USD 348 billion in Ecosystem
courage to start from scratch if their company
Value. Furthermore, Europe is the leading
Iasi, Cluj-Napoca, and Bucharest have been ranked among the top 10 tech cities in
goes bust.
Europe based on cost-effectiveness, accord-
“We
ing to report jointly published by fDi Intel-
want
ligence and TNW. Bucharest is also among
them to be
the Top 100 emerging ecosystems tracked by
encouraged
Startup Genome.
to grow.
The capital city champions the creation
in the Startup Genome ranking. The Emerging Ecosystems represent 49
This is the
of new companies in the country. Some 1,291
culture that
limited liability companies (SRLs) were regis-
we want
tered in the 12 months to January 2021, up 11
to build,”
percent year-on-year, according to data from
said the PM
the National Trade Registry Office (ONRC).
during a conference
STARTUPS COPED ON THEIR OWN IN PANDEMIC ECONOMY
held by
Romania has not implemented any sup-
Group.
port schemes for early-stage startups that
IMPETUM Paltine-
were seeking growth when the pandemic
anu adds that Bucharest – and Romania
continent for emerging ecosystems, with
emerged. Three support measures with a
as a whole – would need to replicate best
38 cities making the list, followed by North
combined budget of more than EUR 1 billion
practices from the UK, which is a role model
America with 32, while the Asia-Pacific
were launched by the government to prop up
for supporting entrepreneurship in a sustain-
region is third with 22, according to the global
independent workers and small and medium-
able manner. “In the UK, regulation is always
report.
www.business-review.eu Business Review | April 2021
30 ENTREPRENEURSHIP
Crypto boom may fuel new investments in startups As the market capitalisation of cryptocurrencies soared tenfold to USD 1.7 billion in just one year, entrepreneurs are looking to bank on the increased investment drive in the crypto space. The accelerated growth of digital currencies put the spotlight back on blockchain, the technology behind Bitcoin, which boasts strong security and flexibility and can be useful in sectors ranging from healthcare to logistics. By Ovidiu Posirca
More business opportunities will emerge as blockchain, the technology behind Bitcoin, is increasingly deployed by startups
T
he last crypto boom ended in early
ICO FUNDING IS OUT, WELCOME IEO
a cryptocurrency using an IEO, but first the
2018, when the market climbed to
In 2017, the idea was that an ICO could re-
entrepreneur should think very carefully
USD 827 billion, after which its value
place angel and venture capital investments
if issuing a coin really makes sense, if the
fell to a low of USD 107 billion. Back then,
in startups, according to Sebastian Cochi-
exchange fees paid to list the coin are really
startups could use raise crypto funds through
nescu, founder & CEO of TailPath, a startup
worth it, and if they are properly prepared
Initial Coin Offerings (ICO). This was a risky
enabling the secure tracking of goods using
for the legal implications that come with it,”
investment for individuals and some of the
blockchain technology.
Cochinescu tells BR.
project teams that raised funds went missing.
“Instead, what we witnessed was a wave
By the first half of 2018, 30 percent of
Nowadays, startups can raise funds by selling
of scams and Ponzi schemes that had a bad
top ICOs launched in 2017 had lost all their
tokens through an Initial Exchange Offering
impact on the image of the blockchain envi-
value, while 86 percent of them were below
(IEO), which is managed by an exchange.
ronment. Nowadays it is possible to launch
their listing price, according to an analysis by
www.business-review.eu Business Review | April 2021 May 2016
ENTREPRENEURSHIP COVER STORY 14 31
professional services firm EY. Moreover, little
should aim to solve a real problem in order to
over 10 percent of ICO-founded startups were
get paying customers as soon as possible.
able to develop an early-stage product in the
“If the blockchain component helps the
“There is a gold rush in the NFT/unique digital assets market; artists and creatives of all types are jumping at this opportunity to
entrepreneur achieve this, then it may make
use the blockchain in order to promote their
This year, the crypto boom is attracting
sense to think about the crypto infrastruc-
brand, engage fans, and generate additional
entrepreneurs bringing various ideas and use
ture and how it could be used,” he explains.
revenues,” says Paltineanu.
first year after raising funds.
cases for blockchain technology and digital
Increasing the adoption of blockchain
The NFT can be used to check the owner-
assets, explains Vlad Centea, the co-founder
solutions will expand business opportunities,
ship of a virtual item on the blockchain. For
and CEO of Morfin, a platform for gamified
just like e-commerce took off as more people
instance, a Nyan cat GIF, a famous internet
token issuing programmes that can be used
started to use the internet, adds Centea of
meme, was sold for more than half a million
for employee engagement and education.
Morfin.
dollars because it was NFT-enabled. In recent
“There are a lot of use cases for block-
weeks, French NFT startup Arianee, which
ated by the crypto assets inflation. However,
chains that businesses could use, from faster
certifies ownership of virtual luxury goods,
most investors have already learned that you
and more sophisticated (cross-border) pay-
raised USD 9 million from investors. Fantasy
cannot just use blockchain for everything,
ments to tokenization – the digital repre-
football platform Sorare, which has tradable
and that mainstream adoption has many
sentation of real assets on the blockchain –,
NFT-based digital cards of football players,
big obstacles to overcome. So, most of these
supply chain use cases, identity use cases,
got EUR 40 million from VC investors.
“There is also an excess of money gener-
ideas (or startups) will not get funding.
and so on,” says Centea.
“Blockchain technologies and NFTs
“Crypto inves-
It's not 2017 anymore,” Centea
and all these kinds of things are
tors today
tells BR.
not supposed to be main-
have
From a pricing
stream,” said Arianee
perspective, excess
co-founder Fred-
market liquidity in
eric Montagnon, as
a low-yield envi-
quoted by Sifted.eu.
ronment coupled
“In the same way
with the overall
that the very core
increasing volatil-
layers of the internet
ity and uncertainty
are not mainstream.”
has fueled the recent
As for Romanian
crypto bull market. evolution of cryptocurrencies, I strongly believe that we are only
entrepreneurs, there
the
“Irrespective of the
are those who supply
highest risk
such crypto technologies and
appetite, which is the ideal profile of a startup investor.
their attached services, and those who
scratching the surface of blockchain tech-
The era of issuing tokens without a purpose
employ them to digitally transform their
nology. The near future will see more use
is over, so making any kind of public offering
businesses.
cases for digital assets on public or private
will be subject to current crowdfunding legis-
“Technology suppliers will benefit first
blockchains, ranging from financial services,
lation and will not be too different from what
(and perhaps most) from the growing interest
marketplaces, and payments infrastructure
we can see on platforms such as Seedrs (for
in employing crypto technologies. First, large
to tax collection and civic activities,” Ciprian
equity/security token offerings) or Kickstarter
suppliers will find it worthwhile to expand
Paltineanu, managing partner of I H C, a
(for reward/utility tokens),” the co-founder of
their hyper-data centers further and provide
group investing in VCs and early-stage start-
Morfin adds.
dedicated nodes for processing this kind
ups, tells BR.
Meanwhile, Paltineanu of I H C advises
of workload. Second, mature startups will
Romanian startups to focus on the B2B field
continue to branch into this area, while new
HOW CAN ROMANIAN STARTUPS TAP INTO THE BOOMING CRYPTO FIELD?
and work on various novel use cases for
ones will continue to appear, providing ser-
blockchain-based technologies. These may
vices over the ever-expanding infrastructure.
Entrepreneurs launching startups that use
range from financial infrastructures to supply
Third, we will start to see a refinement and
blockchain technology and crypto assets are
chain and industries that require fast, secure,
clarification of use cases where blockchain
facing the same set of challenges as their
traceable, and immutable transactions.
may be the way to go, while for other use cases, there will be a reinforcement of the
peers in other industries. Scaling the business, attracting users, navigating through
NFT COMING IN HOT
fact that current/traditional practices are, in
daily challenges, and looking for fresh fund-
Entrepreneurs could also explore the poten-
fact, still the best choice,” concludes George
ing are all at the top of founders’ minds.
tial of non-fungible tokens (NFTs) to expand
Sarbu, community manager at Innovation
their use beyond collectibles.
Labs.
Cochinescu of TailPath says that a startup
www.business-review.eu Business Review | April 2021
32 TRENDS
Primetime game-tainment – a trend that’s here to stay and grow Wunderman Thompson, a WPP agency, recently launched its annual Future 100 report, lifting the lid on the trends expected to shape the coming year. The report was developed by Wunderman Thompson Intelligence, the agency’s futures think tank and innovation unit. These wide-ranging trends highlight creative innovations which are set to go mainstream, along with shifts in consumer behaviour, across 10 different sectors. By Romanita Oprea It became obvious to her quite early that gaming would be the new entertainment source, and she thinks the rise of e-sports and YouTube stardom has only helped brands acknowledge the opportunities this channel offers. And it only took a few brave visionaries taking the risk and using games and gamification to launch a whole new way of doing things in the “new” marketing. “Primetime game-tainment was around back in the day through Wheel of Fortune or similar shows on TV. But that was the old format. Today’s primetime isn’t bounded by time slots any longer, it’s all about the internet, full time interaction, games for entertainment, and gamification for motivation. And a Cristina Blanaru, Code Name
T
whole galaxy of options and opportunities for consumers to find the products best suited to them and for brands to reach the entire world
he entertainment industry is turning
are elevating game-tainment into a primetime
in a very detailed and highly targeted way.
its attention to game-tainment, a new
attraction.
The concept has existed for a while, and there
One may wonder though: how will this
are plenty of people who haven’t watched TV
record numbers of players and spectators.
trend grow and evolve and why? According to
for a long time but who have a selection of on-
The Sims 4 game, for example, hit a peak of
Cristina Blanaru, business and communica-
line entertainment consisting of Twitch gam-
almost 10 million monthly active users in the
tion specialist at Code Name and founder of
ing broadcasts and YouTube walkthroughs
second quarter of 2020, with 2.5 million join-
AdHugger.net, it was high time this became
or streaming anything and everything on one
ing in May and June. On July 1, 2020, more
a trend. “We’ve had game-tainment for at
platform or another. The only thing that re-
than 160,000 viewers tuned in to watch popu-
least 15 years, since the time when it was only
mains to be done is to update the dictionary,”
lar gamer Ninja play Fortnite on YouTube.
appreciated by a handful of nerds staying up
added the Code Name representative.
Moreover, as Wunderman Thompson’s report
at night to kill pixel-made monsters. That’s
shows, gaming has been steadily growing in
when the very raw draft of game-tainment
Daescu Bortun Olteanu, though games were
popularity and influence over the past few
first appeared. There were star players who
already extremely popular a year ago, the
years, with far-reaching impact: spurring a
became influencers in a nerdy world. Then
pandemic has accelerated the status of gam-
new league of game-fluencers, informing
nerds and gaming came into fashion, the tabu
ing as the king of world entertainment: video
luxury retail, serving as an outlet for wander-
around them vanished, interest in games
games have become the most intensely "con-
lust and wellness, and even as a platform for
increased, and now we’re seeing gaming on
sumed" entertainment products in the world,
activism. But now, with playership sky-
stage, in the spotlight, as opposed to the old
with the gaming industry surpassing in value
rocketing and Hollywood production on an
days’ basements and rooms with the curtains
the music and sports industries combined on
indefinite hiatus, new big brand investments
pulled down,” said Cristina Blanaru.
certain markets (such as North America). But
breed of cinema. Gaming is drawing
According to Ioan Daescu, PR director at
www.business-review.eu Business Review | April 2021 May 2016
COVERTRENDS STORY 33 14
as he points out, what will make video games
Blanaru argued. Ioan Daescu believes that
win in the long term is the fact that they are
the video game scene is booming in Romania,
in which companies are communicating in
no longer simple games, but they’ve become
with big gaming festivals such as Bucharest
this field and how important is the input of a
platforms where you can watch concerts of
Gaming Week and Gaming Marathon, esports
specialised communication agency? “Game-
your favourite artists or enjoy film festivals.
events like the Romanian eSports League or
tainment can be seen as a part of the ‘fluffy’
Games like Fortnite are already competing
Digital Crusade, local video games studios
side (communication) or part of the heavy
with major streaming platforms. Last year,
that are contributing to developing big in-
lifting (the hardcore business strategy). Yes,
Fornite hosted virtual concerts by Travis Scott
ternational titles, and many gaming content
you can make some interactive games and
and DJ Marshmello and the trailer for Christo-
creators who are building big communities.
call them game-tainment, cross your fingers
pher Nolan's "Tenet" premiered on this plat-
It’s therefore not surprising that in February,
and hope that a game with basic features and
form. In February, we saw another premiere:
an UK-based firm ranked Bucharest third
a little branding will deliver for you on the
Fornite was the first game to offer the com-
among the best cities in the world for gamers,
business side. And for that, any decent digital
munity a film festival, which screened some
after Austin,
of the best animated short films of the recent
Texas, and
years, Oscar-nominated or BAFTA Awards
Seoul, South
titles. For filmmakers, it is a huge opportunity
Korea. The
because these films would have had a very
new gaming
hard time reaching such a large audience.
era means
“On the other hand, non-gaming platforms
But how is this trend changing the manner
that video
also want to create bridges between the me-
games are
diums. The Tribeca Film Festival will include
turning into
video games in the line-up of future editions
ecosystems
and it will launch a category to award the
for people
best releases of the year, thus reiterating that
to play, have
video games are artistic products. Therefore,
fun, and
we can say that video games are no longer just
be socially
about gameplay; they are extremely culturally
active.
complex media, where people enter, make
“The
friends, form communities, enjoy concerts
growing
and movies, maybe even set up business
exposure
meetings. All on platforms on which they also
of the in-
play. I believe that games will be increasingly
dustry and video games also means a greater
agency can deliver a relatively well-made
used as social links, they will bring people
exposure and visibility for content creators,
game and a good PR agency will make some
closer together and many will be launched
the gaming influencers. In recent years, they
noise. But businesses need the buzz to get
in the future with this goal of improving and
have become top sources of information and
translated into sales,” said Cristina Blanaru.
encouraging social experiences between fami-
entertainment as well as role models for new
Smart companies also use games, but
lies and friends,” Ioan Daescu added.
generations, as young people are moving
that’s because they have gamification embed-
away from traditional media like TV. This
ded within their marketing strategies and
HOW WILL IT PLAY OUT IN ROMANIA?
exposure will certainly encourage creators
already use at least one form of gaming/
Bringing it closer to home, Cristina Blanaru
to provide quality content for their commu-
playing to maintain the interest and loyalty
stated that as far as she knew, Romania has
nities, promoting healthy values. We need
of their consumers. Furthermore, in Daescu’s
never lacked gamers, people with an appetite
to validate and support creators who stand
opinion, gaming is the new frontier of brand
for varied types of content and entertain-
out not only through an overflow of energy
communication. The gaming ecosystem is
ment or internet literate people. Therefore,
and great gaming skills, but also through
complex and complicated for brands and
primetime game-tainment is bound to be on
proper discourse, a good grasp of the videos
there are countless opportunities. The role of
the rise soon, as it is already nearly there. “It
they make and, last but not least, a positive
a specialised agency is to guide and to "edu-
just needs to become a little more popular.
attitude. There are many names that deserve
cate" brands in communicating as naturally as
And that will happen when ad budgets are
more recognition and visibility, who can
possible with people who play video games,
redirected with a brave push prioritising the
become role models for generations of young
a very demanding audience. “One concrete
new channels rather than the old (digital
people, using their platforms to create safe
thing that I see changing in the near future is
versus analogue) and with a proper segmenta-
spaces for entertainment and dialogue about
that brands will no longer use the term ‘gam-
tion of targets resulting in tailored messages.
their shared passion: gaming,” said the Dae-
ers’ when talking to and about this audience,”
If one does that, success will definitely come,”
scu Bortun Olteanu representative.
Daescu concluded.
www.business-review.eu Business Review | April 2021
34 DIGITAL MARKETING
Influencer Marketing still to be mastered by Romanian brands One of the best-known Romanian bloggers, Cristian China-Birta, recently launched his first book providing brands with valuable insights into approaching and working with influencers, as well as advice to better understand them. The book taps into a market which is growing rapidly in Romania and has the potential to change the way we see digital campaigns. By Romanita Oprea SocialPedia and content manager at SavaBros, says the approach should be different. “I believe that some brands could achieve certain marketing and business objectives if they chose to include content creators in their strategies,” Cornovac explained, adding that it all starts with the strategy, the objectives, the target, the budgets available in the short and medium term, etc. And if it makes sense to bring content creators along, it should be done after a brand and an image has been created, to have something to promote. “No brand should work with influencers just because it’s a trend or because it’s what the competition is doing. Those reasons cannot form the basis of a relevant collaboration,” she argued. Alexandra Ion, Golin
T
Sabina Cornovac, SocialPedia
“If you start seeing yourself or your close friends as the “target audience,” you might approach things differently, in a way that’s
he communication industry has a
sage, in a natural and unique way, and that
better for your brand. Find influencers
fast-changing mood, and so does in-
they are there to engage and interact with
with whom you can build a real, long-term
fluencer marketing, so we must start
the community, no matter the questions that
relationship, one that’s guided by the same
come up,” added Alexandra Ion.
rules as a true friendship. Does it match your
understanding this field better and deepen our knowledge if we want to make sure
But when should a brand use influencers
life philosophy? Is it relevant for you? Does
campaigns we work on have a good success
and when shouldn’t it? “Every brand has to
it spark joy? Does it make you laugh? Is it
rate. According to Golin’s digital manager,
choose the right communication channels
entertaining? These are some of the questions
Alexandra Ion, marketers are starting to focus
for its messages as long as they are aligned
that should get a positive answer. Just like in a
more on quality and results rather than brand
to its business objectives. In other words,
friendship, if you find someone that helps you
awareness alone. They’re taking a long term
you should choose to work with influencers
grow, go for it,” says Simina Zidaru, creative
approach and seeking ways to build partner-
whenever they are able pass your message
director at Tribal Worldwide Romania.
ships that bring great benefits to both sides.
along to your relevant audience to achieve
They view influencers as partners and not
your business objective. However, there are
TIMING AND STRATEGY
only as communication channels, and this is
other things to consider before starting an
Influencer marketing is an important part of
one of the biggest changes so far. “Another
influencer campaign, such as a solid social
any brand’s marketing strategy, so in Alexan-
important aspect is their attention to creativ-
media presence and a large audience of
dra Ion’s opinion, there isn’t a good or a bad
ity and community skills. When you have a
engaged users,” said Cristian Manafu, social
moment to start doing it. Better yet, Golin’s
partnership with an influencer, they are your
media trainer & consultant and managing
digital manager believes that brands should
brand’s voice in their community, so you want
partner at Evensys.
think more about how they should start col-
to make sure that they deliver the right mes-
In turn, Sabina Cornovac, the owner of
laborating with influencers rather than when,
www.business-review.eu Business Review | April 2021 May 2016
DIGITALCOVER MARKETING STORY 14 35
about who they want to collaborate with, and
right partnership, the brand will see results
constantly communicate what may bother
why particular influencers may be relevant
on all layers in the long term. Because they
you or what you don’t like and encourage
for their brand. “But if we must talk about
basically vouch for what your brand does.
your partner to do the same,” Sabina Corno-
when, then I have to say it’s when the brand
And this is huge because somehow, the in-
vac concluded.
understands what influencer marketing is
fluencer becomes part of your brand’s DNA,”
about and only when it has a good strategy
Zidaru explained.
CHANGE IN PERCEPTION
in place. There are a few aspects brands must
“The most important thing when a compa-
take into account when it comes to influencer
ny decides to work with influencers is picking
tives have changed in recent years when it
marketing. First, seek quality, not quantity for
the right ones. And by that I mean those who
comes to their interactions with influencers
key metrics. Of course, you want your brands’
are relevant to the company's audience, have
in Romania, according to Cristian Manafu,
As for how much marketers' perspec-
there are four types of companies: those who have never worked with influencers; those who tried once and have never gone back; those who refuse to do so for various reasons; and those who actively work with them. This is a global status quo. “Taking all of these into account, I think more and more commessage to reach as many people as possible,
an engaged community, and are recognised as
panies are embracing influencer marketing
but if you want your brand to be noticed and
experts (they have a long-running experience
as they have more opportunities than ever.
remembered, you need the right partners to
in that field),” said Cristian Manafu.
The niches are getting strong, with micro and
help you communicate. So it’s better to look
Cristian China-Birta points to a very clear
nano influencers are being considered. So
at the quality of their content and community
definition of the objective of an influencer
interactions rather than at how big their audi-
campaign. He says it should be as specific and
ence is,” Alexandra Ion argued.
precise as possible, and then “translated”
thinks there is still a lot of misunderstanding
there's a long way to go,” said Manafu. Along similar lines, Cristian China-Birta
into influencers’ language in the brief. “Many
between brands and influencers, especially
not only campaign-based collaborations.
campaigns go wrong from the beginning
in terms of expectations. According to the
When you have a long-term partnership with
due to the fact that the brand wanted to say
blogger, there are still influencers who believe
an influencer or content creator, you will
one thing, while the influencers understood
brands are there to give them money because
develop a win-win relationship and you will
something else,” notes Cristian China-Birta.
they are cute. Just as how there are marketers
see better results over time.
In other words, the request may get lost in
that choose to work with influencers because
translation.
they believe it’s trendy. Both attitudes are, of
Moreover, one should aim for long-term,
Meanwhile, Simina Zidaru highlights the importance of creativity. Her advice for brand
At the same time, Sabina Cornovac points
course, wrong.
representatives would be to go against the
to the importance of research. Brand repre-
tide and try new things all the time, create
sentatives should read as many articles as
changed the most over the past few years has
content that only their brand could, find new
possible on the subject, spend as much time
been the communication between specialists
influencers, break into new communities. For
as possible on social media accounts they find
and content creators. "I think people have
example, Tribal has a working process where
interesting and, very importantly, make sure
started to look beyond the vanity metrics and
they bring people from the social media
they don’t ignore the voice of communities
understand that, at the end of the day, every-
department and people from the creative de-
and the values of influencers. “At the end of
thing is about money and survival. And that
partment to the same table to brainstorm new
the day, if you aren’t a good fit, strategy no
isn’t generated only through likes, shares, and
ways of approaching influencer campaigns.
longer matters. Last but not least, bi-direc-
comments. We are always engaged in a learn-
“Because the ground is still fresh, there are
tional communication is the key to success
ing process, and that is a good thing. How and
tons of opportunities on how to use influenc-
in a relationship with any influencer. Try to
when will the market become mature? That
ers in a creative, yet effective way. If it’s the
have a clear brief, ask for constant feedback,
depends only on us,” Cornovac concluded.
In Sabina Cornovac’s opinion, what has
www.business-review.eu Business Review | April 2021
www.business-review.eu
36 SOCIAL Business ReviewENTREPRENEURSHIP | May 2016
COVER STORY 14
Crowdfunding campaigns helping out social entrepreneurs When it comes to taking a startup business from a simple idea to actually making it work, each and every step must be carefully planned. While there’s a lot of money and advice available in tech and other business sectors where startups can rapidly prove their profit potential, social entrepreneurs do not have so many pitching and funding options at their disposal. To support those who want to give part of their profits back to communities, a new crowdfunding platform has arisen: consolid8. Business Review went behind the scenes to find out more about this initiative. By Oana Vasiliu If you’re interested in the rewards or you want to support a campaign, you can easily do so through the platform. You just create an account, click “buy”, and make a payment. Each reward will be shipped to you based on the indicative schedule provided by the initiator, after the campaign ends. “We’ve built this online platform to provide people with a space where they can connect with their community and raise capital to transform an idea into a new project or business. People who create a reward-based crowdfunding campaign also get the first chance to validate their idea on the market, as well as the first precious and enthusiastic customers for their business,” says Catalina Check out consolidat8.ro for more information
Azamfirei-Marcu, co-founder & campaign manager at consolid8. It was about time that we had a platform
A NEW ENTREPRENEURIAL APPROACH
the initiating team is confident that it is well-
dedicated to social entrepreneurs and the
consolid8 is an instrument providing growth
tailored to the needs of the community and
creative industries, and consolid8’s strength
opportunities via reward-based crowdfund-
that the budget is realistic.
comes from the know-how of the team
ing campaigns designed by the Structural
“Anyone can back a campaign by claiming
behind it, who has helped more than 160
Funds team at www.fonduri-structurale.ro.
rewards offered by entrepreneurs within the
startups and 30 social entrepreneurs over the
They have created a financial hub providing
predetermined campaign deadline. Essen-
past three years.
support services to entrepreneurs, and each
tially, initiators are selling their services/prod-
“We got to experience their financing
consolid8 visitor can be a campaign initiator,
ucts in advance. We apply the 'all-or-nothing’
needs first-hand, and we know that crowd-
a campaign backer or both.
principle – if the campaign reaches its funding
funding is a very good solution for social
Any social and/or creative entrepreneur
goal before the deadline, the initiator receives
entrepreneurs and creatives. We know they
who has an idea for a new service or product
all the funds raised, then produces and sends
have a great need to test out their ideas and
for their community can create an account
the rewards to its backers. If the funding goal
raise capital and that there was little room
on the platform and launch a campaign. They
is not met on time, backers get reimbursed
on the market for them. consolid8 is the
will get help in refining their idea and design-
for their contributions and the rewards don’t
platform that helps them launch or grow their
ing the campaign, selecting the best rewards,
get delivered. This is a great way of validating
ideas,” Catalina adds.
finding the best ways to communicate with
new products and services with their target
their community, plan budgets, etc. The
audiences,” explains Raluca Preluca, co-
appears to be at the top of the list, especially
campaign will go live on the platform when
founder & community manager at consolid8.
because the revenue that comes out of a
In terms of challenges, the business model
www.business-review.eu Business Review | April 2021
SOCIAL ENTREPRENEURSHIP 37
notes, suggesting
looking at their purpose and social impact is
that their pioneering
eye opening. “On the offer side there are also
work refers to this
challenges in better grasping all the possible
aspect, too.
tools that can enable social entrepreneurs and impact investment. We are confident that we
THE ENTREPRENEUR’S OPINION
will be able to play a strong role in developing
OilRight co-founder
Murray, country manager at Ashoka Romania,
Roxana Damaschin-
one of the organisations acting as advisors for
Tecu wanted to
consolidat8.
this emergent market in Romania,” says Ana
“Crowdfunding is definitely one strongest
reward-based crowdfunding platform is mod-
open a social business in Timisoara that
est. “We are looking for partners who want to
would have a positive impact on the environ-
tools available to develop social finance in our
support us in developing this sector because
ment and employ people from vulnerable
country as it builds on the behaviours that
the vivaciousness of the crowdfunding space
groups. The initial investment came from a
many people are already familiar with due to
enables people to step into the entrepreneur-
European programme, and according to the
our social media and online communication
ship role more often and more easily, and
founder, the biggest challenge was purchas-
consumption – supporting and engaging with
there will be long-term benefits across soci-
ing the necessary equipment and setting up
social entrepreneurs with whom they want to
ety,” Catalina Azamfirei-Marcu argues.
the production space. Still, Roxana needed
be associated. So it comes naturally to people,
more support, so she started a crowdfunding
and we are happy to encourage more and
campaign on consolidat8.
more of them to do the same,” she adds.
ALL NEW Unfortunately, the social finance market in
“I heard about consolid8 during a fund-
According to Ana Murray, those who are at
Romania is still in a nascent phase, in terms of
raising webinar for social startups. I was fa-
the beginning of this social entrepreneurial
both demand and supply. “We are currently
miliar with the concept of crowdfunding and
road should believe in themselves and look
working with international partners and the
was happy
European Commission is backing us in devel-
to see such
oping a financing mix that will suit Romania’s
an initiative
needs. Crowdfunding is still new in Romania,
in Romania.
including that for social entrepreneurs, but
I knew it
we are gladly embracing the pioneering mis-
would be
sion in developing awareness and promoting
the right
its benefits through our acceleration pro-
kind of
grammes,” Raluca Preluca says.
funding to
Yet there is huge potential for crowdfund-
support us
ing to accelerate financial inclusion because
in setting up
it can play a very important role in provid-
our social
ing liquidity to entrepreneurs. “We believe
business.
in matching different types of financing
A crowd-
(grants/crowdfunding/credits, etc.) so that
funding
entrepreneurs can choose from a wide array
campaign
of instruments to best suit their business,”
brings you
Raluca adds.
much more than just the funds you raise. It
for support. “There are so many incubators
brings connections, future business opportu-
and accelerators now – such as Ashoka Fellow
are different types of crowdfunding: it can
nities, visibility, and exposure. It reconnects
Pablo Santeufemia’s Bridge for Billions – that
be based on donations, rewards, equity, and
you with old friends and forces you to focus
allow you to develop your ideas in a struc-
lending. For now, given the Romanian regula-
and send a clear message. For us, it also led
tured, matured, knowledgeable way that miti-
tions, only donation, reward, and equity
to new, long-term partnerships,” Roxana
gates the downfalls of feeling overwhelmed
crowdfunding are possible. “At this moment,
explains.
while you’re getting started. At Ashoka, we
Another aspect to consider is that there
connect many social entrepreneurs to pro
crowdfunding is not specifically regulated in Romania. There is a European regulation for
SUPPORTERS’ LEAGUE
bono or low bono resources that enable them
crowdfunding among member states, but it
The turning point that Ashoka Romania tends
to get the mentoring and support they need.
does not apply to national crowdfunding plat-
to observe during workshops is the change of
The social investment toolkit developed by
forms like consolid8. Romania’s crowdfund-
mindset from grants and recipients to capital
our colleague Mark Cheng is also a strong
ing legislation is still in development,” Raluca
and clients. And for classic entrepreneurs,
place to start.”
www.business-review.eu Business Review | April 2021
38 CITY
What’s new in town?
By Oana Vasiliu
With the pandemic still in full swing, the local cultural scene continues to struggle as authorities remain unable to make any predictions that could help cultural operators plan out their events. But some venues are still open, so let’s take a look at what’s happening this month, even though restrictions have been tightened again across the country in an attempt to keep the third wave of infections under control.
Discover Florica Prevenda's new artshow on her mind since the 90s, including issues like communication in the digital world and the self-representation of the human generator and consumer of instant information. The exhibition presents mixed media on canvas – acrylic, modelling paste, and wood inserts – which it uses to build human geometries of a special chromatic expressiveness. Until April 17, the public can enjoy “The Show That Never Was” at Anca Poterasu Gallery, with artists Matei Bejenaru, Oana Cosug, Larisa Crunteanu, Sebastian Hosu, Fork Restaurant is situated in Ana Tower
Adelina Ivan, Aurora Kiraly, Iosif Kiraly, and Zoltan Bela. The group show focuses on the notion of
FOOD & DRINKS
ART
A series of new places have popped up across
Strata Gallery, the newest art gallery in town,
the exhibition art space and its network of
the city, including OTOTO Store (5 Mendeleev
features an exhibition by Darie Dup titled
collective efforts, desires and hopes, setbacks,
Street), The Great Hill winebar (6 Dr Louis
“ALLreadymade”, which will be open to the
and ideals that emerge from it. The artists’
Pasteur Street) and the Fork The Restaurant
public until May 11.
works provide a glimpse into the liminal
sky bar (1C Poligrafiei Blvd).
ALLreadymade is about things that are
space between the artistic laboratory and
already there, things that have probably been
existing critical statements of the art scene.
sells products from independent brands –
done before, as well as about something
The exhibition unveils the artistic process or
Romanian and international – including food
more - something else. Darie Dup's exhibi-
otherwise revisits earlier works by turning
and drinks, cosmetics, books, clothing, and
tion should be seen as a continuation of such
a mirror inward, to the limitations and pos-
more. The story of The Great Hill started with
artistic approaches, as long as the object
sibilities of an art space.
the desire of five important wineries from the
represents the centre of his artworks – both
Dealul Mare wine region to promote some of
the common object as well as the one created
Le Marteau sans maître” exhibition will wel-
the best Romanian wines. The place is also
by the artist in the most unique positions and
come visitors until May 1.
an art gallery. The gourmet restaurant Fork
images.
OTOTO Store is a grocery store that only
Ana Tower is the result of over 15 years of cu-
AnnArt Gallery is hosting “_FLORICA_PRE-
At Nicodim Gallery, the “Stefania Batoeva:
Le Marteau sans maître, or The Masterless Hammer, Batoeva’s third exhibition at
linary journeys and in-depth research of top
VENDA _anonymous”, an exhibition that
Nicodim, is a series of drawings and paintings
gastronomy. Its design is based on a unique
brings together a selection of over 30 paint-
which, like the Pierre Boulez composition
concept that combines traditional Romanian
ings made between 2017 and 2018, in the
and René Char poems that inspired them,
style with the contemporary designs found at
form of an installation. In the series of works
celebrate the journey of a once-emancipated
Balvanyos Resort and Gastrolab, offering an
reunited under the title “Anonymous”, the
psychic dissonance occasionally reined into
unforgettable fine dining experience.
artist explores major themes that have been
harmony.