Romanian startup market sees

Romanian startup market sees first VC exits to strategic and private equity investors in 2022

2022 has been marked by many changes, challenges, and uncertainties in the tech financing landscape, but it has also brought the first exits by venture capital funds to strategic investors and private equity funds as well as new startup funding through the European Innovation Council (EIC) Accelerator.

By Claudiu Vrinceanu

Venture capital invests in enterprises that have not yet been proven successful

FIRST VC EXITS TO STRATEGIC INVESTORS

The tech startup ecosystem has developed significantly in the last five years, having recorded somewhere between 500 and 1,000 new startups being born. Of these, 200‑300 got financing from business angels and ven‑ ture capital funds. As a result, we’re starting to see the first exits by venture capital funds following their investments in Romanian tech companies. A prime example this year was the transaction in which MedLife purchased the bulk share package in SanoPass, one of the most active Romanian ventures in the health tech space. MedLife has also started investing in tech after its multiple takeovers of clinics and fitness networks. We also saw the first exit carried out by Cleverage VC, an investment fund launched by several Roma‑ nian investors specialising in health tech.

Meanwhile, SeedBlink also made its first exit from a tech startup, two and a half years after the initial listing. MedLife also bought part of the shares that had been sold to indi‑ vidual investors through the crowdfunding platform.

In general, Romanian founders fall into one of four main scenarios. The first one is the "acquihire" or masked hiring, whereby a corporation buys the startup for its team. A second option is a startup being acquired by a corporation for its advanced technology. There is also a scenario where the startup gets purchased by a corporation for its customer (user) base it has built up over time. And finally, an exit scenario involves the purchase of a startup by a corporation that is existen‑ tially threatened by the new technology or business model being developed by the firm’s founders.

FIRST VC EXIT TO PE FUNDS

Another first recorded in 2022 in the Roma‑ nian IT field was the involvement of private equity funds in tech startups. Previously, only venture capital funds had invested in Romania’s tech industry, but this area is also becoming relevant for private equity funds, which generally invest in large companies with a proven track record and mature firms with an established business model.

By comparison, venture capital invests in enterprises that have not yet been proven successful but that show significant potential and provide an opportunity to make back higher‑than‑typical returns if they deliver on that expected potential. The significant dis‑ tinction between private equity and venture capital has to do with size and risk levels.

More specifically, Abris Capital Partners, a private equity investor, supported Alsendo in acquiring a majority stake in Innoship, to sup‑ port the growth of the delivery management company in Central and Eastern Europe, to‑ gether with its four founders. Gapminder, the leading venture capital fund that invests in technology companies, sold its entire stake in this transaction. Innoship will help accelerate the transition of Alsendo, which already has a presence in Poland, the Czech Republic, and Slovakia, to a specialist supplier of advanced delivery management technology throughout Europe.

STARTUPS FUNDED THROUGH THE EUROPEAN INNOVATION COUNCIL (EIC) ACCELERATOR

According to data published by the Eu‑ ropean Innovation Council, until this year, .lumen had been the only Romanian company selected in the Horizon Europe programme, following a rigorous process, having obtained funding of EUR 9.4 million. Recently how‑ ever, Romanian startup AMSIMCEL, the first GPU-Powered Physical Verification Frame‑ work with High‑Performance Computing capabilities, raised EUR 4.8 million in blended financing through the European Innovation Council (EIC) Accelerator. The company ranks among the 75 innovative European firms that will receive financial support worth EUR 400 million, all in the form of grants and equity investments from the European Innovation Council (EIC) Accelerator.

Video content becomes top campaign tool for marketers

International specialists say that it’s easy to get caught up in chasing new developments and expanding tech capabilities when your team should really be championing what you already have and thinking creatively about how you can put it to better use. But the most important thing that marketers and advertisers can bring to e-commerce is creativity, and not just in terms of design and visuals, but in new and innovative approaches to doing just about anything in the retail space.

By Romanita Oprea

As pointed out by the Digital Marketing Institute, video is a versatile and en‑ gaging content format that not only gives us a real‑life picture of what is going on, but it’s also easy to share across multiple plat‑ forms. In fact, 86 percent of businesses are already using video as a marketing tool. Con‑ sumers like it because it’s easy to digest, en‑ tertaining, and engaging, while marketers like it because it can provide a potentially huge return on investment (ROI) through many channels. According to Anca Ciuluvica, digital media planner at Spoon, these days, when there are so many brands and products and when we, as consumers, are constantly being bombarded with all kinds of information, we need something to catch our attention, and this “something” is a combination of creative ideas, media strategies, and messages. “In the retail space, with most products now being sold online, you need to find the perfect mix of creative formats, messages, and platforms to attract customers and get their attention. If we’re talking about e‑commerce, where the shopping experience is quite similar from one brand to another, the way you can stand out is through the type of communication you use, through design and visuals, as well as through media placement. The right mix can bring you loyal customers, and that is what keeps the business rolling in the long run.”

Vlad Giogu, group creative director at pas‑ tel, says that championing creativity should be a constant process that continuously develops and grows. And if you care about the creative process and the idea that results from it, then you must provide that idea with the best possible delivery. “The delivery should make use of the latest tech solutions and the latest research data to ensure that the message gets delivered to the exact audience you want and in the way you want it. Creativ‑ ity is always important, just as long as you are not creating for the mere sake of it. Of course, there should be a never‑before‑seen and ar‑ tistic element to what you are creating, but at the end of the day, you’ll have measurable re‑ sults that need grounding in reality. Creativity is more about connecting existing dots in the right context and reaching the right audience rather than re‑inventing the wheel.”

According to Andreea Ghenoiu, creative partner at Jam Session Agency, creativity in e‑commerce communication can give heart

to a system that delivers customer satisfac‑ tion and trust through the product itself. And building love for the brand around story‑ telling helps this customer satisfaction last longer and generates empathy even when the product/brand does not deliver flawlessly. “Love triggers loyalty. It depends on how we define this ‘always new’ or ‘never done before.’ It’s hard to state that something has never been done before; I would say that it depends on how it gets re‑done. If the idea has been done before, but the execution is

fresh or the storytelling angle is different, it means that it is new. Sometimes the way you say something becomes even more important than what you say.”

“The first and best option is always the one you can rely on. Creativity is agencies’ ‘in‑house’ weapon and it should always be exercised on complicated briefs. The e‑ commerce industry is perfect for this because there are lots of challenges, whether we’re talking about the absurdly limited space in offline retail or the flood of online communi‑ cation. Well, when the obstacles are tough, the journey to the mind of the consumer is creativity‑driven, and lots of great ideas are waiting to be discovered,” thinks Cosmin Baba, creative director at Oxygen. A balanced view is also put forward by Radu Olteanu, cre‑ ative partner at 35Creatives Studio by Galeriu & Partners, who says the creativity is key can be both true and false, at the same time. Yes, creativity is important, but so is the tech. He doesn’t see a conflict between those two, but rather an osmosis. “Yes, you can be creative without using technology. But imagine using that tech to upgrade your creativity. It’s not 2.0 or 3.0; it’s infinity.0. Today, we’re seeing a democratisation of technology. People are getting access to things that weren’t even imaginable 5‑6 years ago. Prices are dropping faster than we can assimilate new tech. So

But it also depends how we define creativ‑ ity. Some people define it as something that sells, while others see it as something crazy. “In both cases, whether we like to admit it or not, creativity plays a major role in business development. Everyone must be creative, from a young person making their first steps inside an ad agency to an entrepreneur. In today’s business environment, you must constantly reinvent yourself, and this is a cre‑ ative process in itself. So, everything revolves around creativity. Even in our personal lives, let’s think about that everyday question,

‘What should we eat today?’—the response is a creative one as well,” Radu Olteanu argued. We can watch beautiful inspirational speeches on YouTube, describing epiphanies and creative breakthroughs, but in reality, ev‑ erything is much simpler. Every decision we make involves a certain amount of creativity.

His point is buttressed by the Oxygen rep‑ resentative, who believes that there’s always an amazing new campaign right around the corner of the mind. Nowadays, retail and e‑commerce brands can be found in the most unexpected places, but they end up making sense for consumers thanks to their innova‑ tive campaigns.

why should we be afraid of putting technol‑ ogy to a good use? Let’s bring creativity and technology together.”

NEW ROADS TO CREATIVITY

In this context, how much weight does cre‑ ativity still carry and how much room is there from something that’s never been done be‑ fore, especially in a world where creation and innovation have always been sought after? “Creativity can really make a difference, and the context of a certain time and place can be used as a source of inspiration. Some more courageous brands have even integrated political topics and gained popularity by do‑ ing so (e.g., Burger King’s Brexit campaign). It is important to provide information in a way that people can remember and resonate with, so they’ll start to love it and yearn for it. Creativity might also mean saying something that impacts people’s way of thinking and generates real changes that can benefit us and the planet. As such, there will always be room for new things, because they grab attention in a world that’s full of information,” said Anca Ciuluvica. SKY IS THE LIMIT?

But how far should creativity go without being considered exaggerated or disturbing? “It can go super wild, but what we want to maintain is relevance and truthfulness to the brand. Never forget that ‘your art is commis‑ sioned.’ The storytelling, the influencers, the innovation… all of these should speak as a whole in the name of the brand. We tend to put video on a pedestal. We’ve somehow

developed a system in which ideas are au‑ tomatically translated into videos, and only after we see the idea as an amazing video can we develop the campaign as a whole. That does not mean we don’t do campaigns without video; it simply means that we tend to first imagine the idea as a video,” Andreea Ghenoiu of Jam Session explained.

While pastel’s group creative director believes that creativity shouldn't have limits and that it's a process that ends when the creator is almost certain it needs more, Radu Olteanu argues that creativity is not a product we can measure. Is not something like pota‑ toes, which we can buy per kilo. “Creativity is good as long it serves your purposes. When

it crosses that line and it starts to affect your job or your business, I don’t think I can still call it creativity. It’s only called that when it has a positive impact on your life or your business.” At 35Creatives Studio by Galeriu & Partners, video and photo production for social media is a mélange between different areas of interest, with Olteanu seeing himself simultaneously as a filmmaker/photographer, as someone who understands social media, and as a marketer who can see what people take from his productions, identify the message that sticks, and find the triggers for reaction. He thinks trends are only useful for lazy people, who will grab at trends as if their lives depended on it. In his opinion, one must do everything to achieve the client’s goal, whether it requires them to deploy trends from 2008 or 2018. “There is no such thing as a recipe for success or a standard solution for a brief. Some ‘old trends’ could be useful for a new problem. If we only follow the latest trends, we risk being too much like everyone else. They represent guidelines, options that may or may not be useful. I don’t think your client will be happy about your deliverables if they merely follow trends but don’t actually help them reach their goals. So, let’s be smart, not lazy! Content creations is not a highway. Is rather a car on the highway. And thar car must ride on your strategy. You can have a Mercedes Benz, or you can have a Dacia 1300. If you choose a Mercedes, people will see you in the feed. It’s up to the client. But here is the magic. This Mercedes doesn’t have a 70k euro price tag. It’s a luxury car, with an incredible price, that most of the companies can afford it,” added Radu Olteanu. 35Creatives Studio operates in the niche of tabletop videos/photography for food, drinks, and other products. They are a one‑stop‑shop

where clients can receive full photo and video production services: concept, pre‑produc‑ tion, production, and post‑production, all at reasonable costs. Their productions are mainly used on social media and YouTube, but they are trying to keep their standards high, using some of the best equipment, from lenses and motion control systems to post‑ production facilities. Besides the tech, they are always trying to improve their shoots and have an out‑of‑the‑box approach.

“I think there is a limit and that brands need to be aware of how their actions and their communication may affect people and the environment, but besides that, there is no other limit to creativity, especially now, when AI and automation are playing such big roles in our lives. Creativity comes from the soul and it can’t be replicated easily; it needs a human touch. Through video, a brand can provide more details and make the consumer part of their story,” said the Spoon representative. In recent years, and especially in 2022, Ciuluvica and her teams have seen video performing better than static assets on many platforms, which makes video a must‑ have component of almost every campaign. TikTok has also had a great impact on this format, as many users have moved to this platform and vertical video content is now in high demand as users want to get their infor‑ mation in a quick and entertaining way.

“A video can be the star of a campaign if it hits the right goal for the brand, meaning that it should be part of something bigger, and that integrating it into the campaign map

of deliverables should make its purpose sud‑ denly become clear. Once you understand its role, video becomes more than just a passive way to deliver information, and it can be creatively integrated into the life of the con‑ sumer. On this one I would say we all need to reset our mindsets,” said Cosmin Baba. Young generations feel different about video campaigns and the way stories are being told. The key is to be interesting while pitching the product to them, without overkilling it or reaching cringe levels. “For us, the target is the trendsetter when talking about video content, and what we try to do is take it to the next level and provide them with a video product that’s worth their attention. So, we keep up with them by acknowledging their creativity and mixing it with the technology that serves the right purpose,” added Oxy‑ gen’s creative director.

Romanian creativity goes to Benelux

Wunderman Thompson Benelux has appointed Sandra Bold to the newly created role of Chief Creative Officer. In her new role, Bold will work across Wunderman Thompson offices in Amsterdam, Antwerp, and Brussels, to lead the agency’s creative output and drive excellence across its client portfolio in the region. In addition, Bold is the president of the IAB MIXX Romania 2022 jury—another reason for BR to sit down with her and find out more about all those new challenges and opportunities.

By Romanita Oprea

How would you characterise yourself as a creative? What about as a leader of the creative department?

My ultra‑secret formula, ready in a micro‑ wave minute, is that I’m not pretending to be something that I’m not; I’m trying to not fall in the trap of “a leader should or would, therefore I should or would.” And what is equally important is asking for advice when you feel like you need it.

How did the proposal from Wunderman Thompson arrive?

I’m a strong believer that most things in life happen for a reason. We might not under‑ stand why some things pop up in our lives, but they do, and it’s our duty to give them a chance. I’m thrilled to take on this new Chief Creative Officer role for the Benelux region. From the creative work they produce to the way they collaborate across areas of expertise, it’s clear that Wunderman Thompson sees the potential in its offices in Antwerp, Brussels, and Amsterdam working together as one.

What are the main values you share?

If you’ve worked in Romania’s advertising in‑ dustry, then you know that you can take any crumb and turn it into a Michelin star dish. Wunderman Thompson has this same vision of locking in and creating opportunities whatever it takes. time as Global Creative Director at Publicis Milan?

I once read in a book that when you are of‑ fered a seat on a rocket ship, you don’t ask what seat it is.

What were the first decisions you took in the new role and what are your main goals?

My goal is to create less spam. We’re in the business of barging into people’s lives, so we might as well barge in with something that entertains them, not just spam them by flash‑ ing a product in their faces. All my decisions tend to go towards keeping that principle alive.

How did you decide to choose advertising and keep on doing it over and over again?

I always thought it was cool that you could think of something and put it into the advertising machine and then it can go out on the market, for everyone to see. There’s some kind of magic there. Being responsible for how a brand speaks and what it does for people: whether it makes them laugh, think, act, react, and more. The part about enter‑ taining people attracts me the most.

What are the biggest challenges in your new role?

I’ll be honest: there are plenty. But if I were to pick a big one, it is all the travelling. I am still not used to it.

How would you describe the 2023 advertising industry?

I’ve been scared to predict the future since I thought that 2020 would be The Best Year Ever—and we all know how that went. Now, in 2022, we’re dusting the pandemic off and it feels like we’re starting to have fun again.

What do you think will be the top trends around advertising creativity in the coming year, and why?

I’m not sure about trends, but what I know for sure is that we need more entertainment.

What is your wish for 2023, professionally speaking?

When business meets sports

Ion Schiau is a board member at the Romanian-Swiss Chamber of Commerce and the managing partner of Albini Prassa, a Swiss watch distributor. He is also one of the few local businesspeople who actively supports sports initiatives, with a focus on rugby.

By Oana Vasiliu

Ion Schiau lived in Switzerland for several years, where he worked for the Swatch Group. He returned to Romania for busi‑ ness purposes and he rapidly became an avid supporter of sports. His company supports several sports clubs, including the rugby club from Gura Humorului (Suceava county) and the rugby team from Alba Iulia. In 2018, in partnership with Tissot, he created a limited edition of 500 watches in collaboration with the Romanian national rugby team.

Why was a sports working group created within the Romanian-Swiss Chamber of Commerce?

First, we believe sports are a driver of change in society, health, and education. Further‑ more, Switzerland has excellent know‑how around sport management, with dozens of international federations and schools focused on sports. We know Switzerland has strong communities that constitute the backbone of elite and performance sport. Most Swiss companies have an important role in these communities, starting from the local level and reaching the regional and national levels. We believe our initiative to create a sports group can have a significant positive impact in the long term.

What is the current stage of the project and what has been the response so far?

All companies from the Romanian‑Swiss Chamber of Commerce have been ap‑ proached, and we will have the first consoli‑ dated feedback ready in the coming weeks.

In a previous interview, you mentioned that your objective was to create a consultancy hub regarding sports sponsorships. How would this work?

Good question. The ambition here is to consolidate what we believe to be good practices, useful tips, coherent presentations and pitches, all of which are being efficiently implemented at a professional level in Swit‑ zerland. I’ve sadly noticed a major lack of such tools and practices among Romanian sports clubs. Enabling local structures to build up their offers—in a sense, their products— and consolidate long‑term relationships is key in engaging communities.

In your opinion, what types of companies should invest in sports? And why?

There’s absolutely no restriction. The base of the pyramid has to be as large as possible, with contributions from RON 100 to RON 1 million; support is important at any level. Now, of course, in order to engage companies in this process, you must build trust, and that can only be achieved through transparency.

I would be truly happy to see companies that are strongly engaged in sports in Swit‑ zerland finding adequate ways to relay their communication and involvement in com‑ munities in Romania. This would represent a coherent extension of their policies.

What’s the most important lesson you’ve learned in the arena of sports management? And what can you tell us about using sports as a communication tool for the brands you’ve represented?

Well, I guess that consolidating a partnership over the long term is the hardest thing to do. We often assume that the handshake and signing a one‑year contract is the ultimate goal, but it’s actually only the beginning of a long‑term effort. Another point I would make is that no matter the sport, if you have a coherent message and dedicated teams, you’ll create a great story and ultimately have a strong impact that is well received by your audience.