Romania has maximum 100 angel investors and only half of them are active, according to Peter Barta, CEO of the Post-Privatisation Foundation. Romanian startups struggle with finding financing, he said.

“If banks financed startups with high risk, I don’t think you’d deposit your money there. We lack funds which are useful at the beginning of the road, namely the early-stage or pre-seed funds,” Barta added, cited by local Wall-street.ro.

The business angel law, which was approved at the end of April, has certain shortcomings, he said. The law allows individual investors to put money in startups and early projects and gives them certain tax benefits. However, the problem lies in the fact that anybody can become a business angel, by the new law, should they comply with several conditions at the same time.

As an alternative, startups can use the three Fs to find financing, namely family, friends, and other fools. Entrepreneurs also need to put in their own money. If you don’t invest, it means you don’t take up risks, Barta said.

Business Angel Law could bring 500 Romanian firms up to EUR 10 mln

Romania greenlights Business Angel Law. What are the benefits for individual investors?

editor@romania-insider.com