Page 1
South-Eastern Europe Private Equity and Venture Capital Association ©
Romanian Case Study
South Eastern European Entrepreneurship
Department of Mechanical Engineering
Program European Innovation and Entrepreneurship
(graduate course ME421)
Irina Anghel Secretary General
Southern Eastern Europe’s Private Equity and Venture Capital Association
28th of February 2011
Page 2
South-Eastern Europe Private Equity and Venture Capital Association ©
SEEPEA Overview
2
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.
Page 3
South-Eastern Europe Private Equity and Venture Capital Association ©
Personal History
Law
• Attorney at law;• Founder of a Romanian Law
Firm;• President of the Future of
the profession commission AIJA;
• Law professor @ Law School & B School
VC
• Pioneer of legal advice for PEVC funds in Romania;
• Secretary General SEEPEA;
Entrepreneurship
• Founder and CEO of an NGO dedicated to entrepreneurs;
• Global Ambassador GEW (2008)
Page 4
Aka THE MOTHER IN LAW
Page 7
South-Eastern Europe Private Equity and Venture Capital Association ©
The Triple Helix Concept *
From innovation to economic development - adapted model
7
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.
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
Government
Business
Education
Page 8
South-Eastern Europe Private Equity and Venture Capital Association ©
We need more real entrepreneurs…
8
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).
Page 9
South-Eastern Europe Private Equity and Venture Capital Association ©
The challenge …
Romanians don’t believe hard work helps one get ahead
9
% 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
Page 10
with a complex a solution involving
10
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…
An Eastern European problem…
(with historical roots)
and
Page 14
Looking for more than
just relaxing financial constraints
Getting also additional strategic guidance
Page 15
Looking for Angels and VCs
Page 16
They bring the
money…
Page 17
But they can
also
open some doors
Page 18
And facilitate access to top talent
Page 19
Add different
perspectives
Page 20
Push towards new markets
Page 21
Support Innovation
Page 25
South-Eastern Europe Private Equity and Venture Capital Association ©
Quality of Educational System and Brain Drain
25
Brain drain
Romania 116th place
Quality of the educational system
Romania 84th place
Math and science education
Romania 43rd place
Management schools
Romania 98th place
Tertiary education enrollment rate
Romania 22ndplace
* Source: The Global Competitiveness Report 2010-2011 [International Ranking of 139 analyzed countries]
Page 26
South-Eastern Europe Private Equity and Venture Capital Association ©
General Framework
26
Favoritism in decisions of
government officials
Romania 123th place
Intellectual property
protection
Romania 81th place
Public trust of
politicians
Romania 116th place
Transparency of
government policymaking
Romania 137th place
Strength of investor
protection
Romania 33th place
* Source: The Global Competitiveness Report 2010-2011 [International Ranking of 139 analyzed countries]
Page 27
South-Eastern Europe Private Equity and Venture Capital Association ©
Emerging Exporting Nations
27
The emerging software exporting nations are Romania, Bulgaria,
Ukraine, Poland, Czech Republic, Hungary.
90% of the software export is due to
outsourcing for Western Europe and
North America.
Romanian software export increased in 2010
reaching 500 mil. EUR (bellow 2008 level the
highest so far).
Page 28
South-Eastern Europe Private Equity and Venture Capital Association ©
2009
2010
0.5%
1.9%
3.1%
40.7%
52.7%
10.0% 47.4%
44.2%
Seed Start-up Later Stage Venture
Growth Rescue/ Turnaround Replacement Capital
Buyout
Investments - Market Approach by Stage
28
* EVCA Regional Reporting, 2010
Total Investments
102,837 mil EUR
Total Investments
220,881 mil EUR
The were no investments in Seed and Start Up companies on the local market in 2010.
Page 32
South-Eastern Europe Private Equity and Venture Capital Association ©
Quality of Infrastructure
32
Internet bandwidth184 MB/s per 10,000 population
16
Mobile telephone subscriptions 119.3 per 100 population
36136 134
Quality of overall
infrastructure
Quality of roads
Quality of air transport
infrastructure
102
Quality of railroad
infrastructure
70
* Source: The Global Competitiveness Report 2010-2011 [International Ranking of 139 analyzed countries]
Page 33
Looking for angels…
Page 35
South-Eastern Europe Private Equity and Venture Capital Association ©
For more information please contact us at:
Thank You!
Irina Anghel
[email protected]
+4021 231 0812