With a focus on ideas, not track record, one of Romania’s regional development agencies has its sights set on creating tens of successful tech firms—and at least one unicorn—by 2027.
A unicorn from western Romania? That’s what Romania’s Western Regional Development Agency (ADR Vest) wants to see by the end 2027.
The agency this week began the process of selecting the manager of a new regional accelerator— Romania’s first—which it wants to oversee the disbursement of more than 11 million euros in early-stage firms.
The search, says ADR Vest, is international.
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The financing, from the EU’s 2021-27 Regional Development Programme, will be supplemented by the eventual fund manager, which will also be expected to attract independent third-party investors.
Besides funding, the accelerator will support early-stage high-tech companies with mentoring and market access. Romania’s West Region includes the cities of Arad and Timișoara (pictured above), and already has the second highest GDP per capita (15,500 euros in 2022) of any of Romania’s eight EU regions except for the capital, Bucharest.
Overall, the EU’s Regional Development Programme is worth 1.18 billion euros to the region.
“This is a pivotal moment for the entire West Region,” says Sorin Maxim, general director of ADR Vest.
“One of the key pillars of our regional development strategy in the current financial cycle is to invest in early-stage companies, particularly those with a technological component. We’re focusing on well-known business accelerators that offer seed money, and on venture capital funds as well.
“Our goal is to cultivate a unicorn in our region by 2027—essentially, a start-up that surpasses a billion-dollar valuation. We’re planting the seeds now, and with time, we’ll nurture them to fruition. This type of investment is crucial in supporting companies with great ideas and expertise but lacking resources. This is where we step in to help them grow.”
Technology and innovation
The programme will be implemented in three phases, of which the first is the pre-acceleration stage. The fund manager will offer training, mentorship, and support to individuals with innovative and viable business ideas, aiming to develop these ideas to at least MVP (Minimum Viable Product) stage.
The goal is to create a robust portfolio of SMEs ready to enter the acceleration process.
At the acceleration stage, SMEs with new business ideas in technologically innovative sectors will be offered guidance, training, mentorship, and venture capital funding to help them achieve development and international exposure.
This final stage, seed financing, will target SMEs that have already received initial funding during the acceleration phase, as well as other companies with high potential for rapid market growth.
By the end of the 2021-2027 funding cycle, ADR Vest aims to support at least 100 MVPs in the pre-acceleration stage, 40 SMEs in the acceleration stage, and 10 SMEs in the seed funding stage.
A focus on ideas
“There’s a significant difference between the SME calls from previous funding cycles and what we’re developing now,” Maxim adds.
“Previously, funding focused on a firm’s existing capabilities. Now, we’re focusing on ideas—their potential for market development and the technological innovation they bring.
“Additionally, companies won’t just receive funding; they’ll also benefit from a comprehensive mentoring package provided by the accelerator’s management team. From marketing to technology and financial development, companies will receive assistance that would otherwise need to be sourced externally.”
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