irina anghel - seepea - entrepreneurship vc romania - stanford - feb 28 2011

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


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.


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)

Aka THE MOTHER IN LAW


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


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).


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

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

Looking for more than

just relaxing financial constraints

Getting also additional strategic guidance

Looking for Angels and VCs

They bring the

money…

But they can

also

open some doors

And facilitate access to top talent

Add different

perspectives

Push towards new markets

Support Innovation

proverb)

Back to Romania


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]


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



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).


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.

Later Stage

Early Stage


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


Looking for angels…


For more information please contact us at:

Thank You!

Irina Anghel

[email protected]

+4021 231 0812

irina anghel - seepea - entrepreneurship vc romania - stanford - feb 28 2011

Documents

prospects of private

venture capital industry

place romania

western europe

romania attorney

educational system romania

eastern european average

private companies active