About 500 Romanian companies could receive in the next 12 months total funds of EUR 5-10 million from business angel investors, following the Business Angel Law approval, said Florin Jianu, former Minister of Tourism and Small and Medium-Sized Enterprises.

The most interesting projects are in IT, services and tourism, according to Romanian entrepreneur Marius Ghenea, reports local Mediafax.

Business areas with high growth potential will be the winners as investors search for projects with potential, not businesses which grow slowly and have low yields, Ghenea said.

At the end of April, the Chamber of Deputies approved the Business Angel Law, which allows individual investors to put money in startups and early projects and gives them certain tax benefits. Anybody can become a business angel, by the new law, should they comply with several conditions at the same time.

The business angel should not already be involved in the company they want to invest in. The person will become an associate in the firm by contributing cash or in-kind. The investment can stay between EUR 3,000 and EUR 200,000, and should be paid via the local banking system. The investment should also be registered in the company’s accounting.

The new law limits the business angel to 49% of the company via their investment, controlled either directly or through intermediaries.

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