1. Department of Mechanical Engineering
Program European Innovation and Entrepreneurship
(graduate course ME421)
South Eastern European Entrepreneurship
Romanian Case Study
28th of February 2011
Irina Anghel
Secretary General
Southern Eastern Europe’s Private Equity and Venture Capital Association
South-Eastern Europe Private Equity and Venture Capital Association ©

2. SEEPEA Overview
 The Association supports the interests of the private
companies active in the South-Eastern Europe
private equity and venture capital industry.
 We assemble members from 8 countries: Romania,
Bulgaria, Republic of Moldova, Bosnia and
Herzegovina, Serbia, Montenegro, Republic of
Macedonia (the Former Yugoslav Republic of
Macedonia), and Albania.
 SEEPEA's objectives:
 Increase awareness and understanding of the
private equity and venture capital industry in the
region.
 Lobby the relevant national and European bodies
to improve the prospects of private equity and
venture capital and to support the development of
the entrepreneurial spirit.
 Facilitate interaction and the sharing of
knowledge between our members.
 Keep members informed about initiative in PE
and VC market.
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3. Personal History
VC
Law • Pioneer of legal advice for
PEVC funds in Romania;
• Attorney at law; • Secretary General SEEPEA;
• Founder of a Romanian Law
Firm; Entrepreneurship
• President of the Future of
the profession commission • Founder and CEO of an
AIJA; NGO dedicated to
• Law professor @ Law entrepreneurs;
School & B School • Global Ambassador GEW
(2008)
South-Eastern Europe Private Equity and Venture Capital Association ©

4. Aka THE MOTHER IN LAW

7. The Triple Helix Concept *
From innovation to economic development - adapted model
The phenomenon of the triple helix system has been recognized widely in developed countries as a
positive synergy among the three different actors in knowledge spillovers. The integration of the three
segments increases the competitive advantage of economic development, regional or national.
Business
Education Government
Recent research showed that since the helixes are intertwined, any one of them, if strong enough, can
set in motion the other two and by this the entire system. Out of the three helixes, the Business one
seems to be the one with the highest potential in the short run therefore it should be strengthen and
accelerated.
* Model developed by Professor Henry Etzkowitz, Research Fellow at Stanford University
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8. We need more real entrepreneurs…
 For economic growth;
 For better products and services;
 For creating jobs and prosperity;
 For inspiring others to become accountable instead of feeling
entitled.
WHICH MEANS
We need more people who believe
they can shape things by working hard
(and taking risks).
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9. The challenge …
Romanians don’t believe hard work helps one get ahead
% of population believing that hard work helps one get ahead (by regions)*
Romania ranks 5th lowest in the world in terms of feeling that hard work brings
adequate returns, ranking lower than the Eastern European average, lowest in the world.
* Source: Gallup World Poll , January 2011
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10. An Eastern European problem…
(with historical roots)
and
with a complex a solution involving
 Bringing new role models to light in order to inspire a
shift of mentality;
 Creating a national entrepreneurial movement and
dedicated support programs;
 and getting help from…
10

14. Looking for more than
just relaxing financial constraints
Getting also additional strategic guidance

15. Looking for Angels and VCs

16. They bring the
money…

17. But they can
also
open some doors

18. And facilitate access to top talent

19. Add different
perspectives

20. Push towards new markets

21. Support Innovation

22. proverb)

24. Back to Romania

25. Quality of Educational System and Brain Drain
Quality of the educational system
Romania 84th place
Tertiary education enrollment rate
Romania 22ndplace
Math and science education Management schools
Romania 43rd place Romania 98th place
Brain drain
Romania 116th place
* Source: The Global Competitiveness Report 2010-2011 [International Ranking of 139 analyzed countries]
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26. General Framework
Transparency of Favoritism in decisions of
government policymaking government officials
Romania 137th place Romania 123th place
Public trust of Intellectual property
politicians protection
Romania 116th place Romania 81th place
Strength of investor
protection
Romania 33th place
* Source: The Global Competitiveness Report 2010-2011 [International Ranking of 139 analyzed countries]
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27. Emerging Exporting Nations
 The emerging software exporting nations are Romania, Bulgaria,
Ukraine, Poland, Czech Republic, Hungary.
 Romanian software export increased in 2010
reaching 500 mil. EUR (bellow 2008 level the
highest so far).
 90% of the software export is due to
outsourcing for Western Europe and
North America.
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28. Investments - Market Approach by Stage
The were no investments in Seed and Start Up companies on the local market in 2010.
Total Investments
52.7% 44.2% 102,837 mil EUR
2010 3.1%
Total Investments
1.9% 40.7% 10.0% 47.4% 220,881 mil EUR
2009
0.5%
Seed Start-up Later Stage Venture
Growth Rescue/ Turnaround Replacement Capital
Buyout
* EVCA Regional Reporting, 2010
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29. Later Stage

30. Seed

31. Early Stage

32. Quality of Infrastructure
Internet bandwidth
184 MB/s per 10,000 population
Mobile telephone subscriptions
119.3 per 100 population
136 134 102 70 36 16
Quality of roads
Quality of railroad
Quality of air transport infrastructure
Quality of overall infrastructure
infrastructure
* Source: The Global Competitiveness Report 2010-2011 [International Ranking of 139 analyzed countries]
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33. Looking for angels…

35. Thank You!
For more information please contact us at:
Irina Anghel
irina.anghel@seepea.org
+4021 231 0812
South-Eastern Europe Private Equity and Venture Capital Association ©