Report: Investments in Romanian startups registered 12x increase in the last 6 years

Investments in Romanian startups have registered a 12x increase in the last 6 years, reaching EUR 101.7 million in 2022 and making Romania the fifth country in Central and Eastern Europe at the top list of investments raised by startups, after Estonia, the Czech Republic, Croatia, and Poland.

The year 2022 also brought an increase in the number of transactions in the country, from 71 in 2021 to 73 in 2022, respectively in the total volume of transactions, from EUR 91.4 mln in 2021 to EUR 101.7 mln in 2022, according to the third edition of the Romanian Venture Report, created by How to Web in partnership with KPMG Romania and KPMG Legal.

“Venture deals involving Romanian startups stood up to 2022’s strong headwinds coming from the global tech scene and the global economy in general. Coming out of 2022 we see strong signals that deals involving Romania-born startups can actually turn into a much-wanted bet in one’s portfolio, to say the least,” says Alexandru Agatinei, CEO of How to Web.

One important detail that stands out from the report’s conclusions is the tripling of the volume of Series A transactions in 2022, compared to the previous year. At the same time, the volume of seed transactions increased by 29%, reaching EUR 56.4 mln, compared to EUR 43.4 mln in 2021.

A positive increase can also be seen in the volume of transactions concluded in the first round, which increased by 40%, while the volume of follow-on rounds remained at a similar level compared to the previous year.

“Becoming a successful tech company has more to do with perseverance and the founder’s character than about a big idea and inspiration. Founders, their teams, and their backers have to feed their thoughts, take risks with unconventional, creative approaches, and build and promote innovation. In turn, dynamics like the ones we see in the Romanian Venture Report are not just possible, but the successful continuation of industry in our region on a steep rise," says René Schöb, Partner KPMG, Head of Tax and Legal.

The Romanian Venture Report offers a complete picture of the venture capital investments raised by Romanian startups and analyzes the types of transactions, the evolution compared to previous years, the most promising industries or technologies developed by the startups that raised investments, but also Romania’s relationship with the European ecosystem of investors and technology. The report is a flagship material for investors, startups, and entrepreneurs from the entire region.

(Photo source: Daniil Peshkov | Dreamstime.com