Mihai Sfintescu, an experienced venture capital and private equity manager, is in the process of setting up a new fund that will provide seed financing for start-ups in Romania.
He said that the fund will make investments worth several hundred thousand euros, but did not provide further detail because this is an ongoing process.
“We will be targetting young companies that have a product and are in the stage of launching on the market,” said Sfintescu.
He has underlined the fact that Romanian programmers should focus more on building products that can be sold across the globe. His new fund will target IT firms.
“In seed there isn’t any institutional investor,” said Sfintescu, during the fourth SMEs How-To event, which was organized on Thursday by Business Review.
According to the venture capitalist, the local market registers deals over EUR 5 million, but that the financing options in the EUR 1 – 5 million bracket are limited.
Sfintescu has pointed out that the IT and venture capital community are trying to build a financing ecosystem in Romania. This means helping start-ups take the full financing course, starting with pre-accelerator financing to strategic investments at later stages.