New hub in Romania aims to create more impact unicorns: 'There's a lot of potential here'

Perhaps Romania isn’t the first European country that comes to mind for investors looking for the next big impact startup to back. Not because there aren't any impact companies, but because they don't normally get as much attention in international media as for example the ones from the UK, Germany and France.

But the country is hoping to change that when the European Institute of Innovation and Technology opens its latest community hub in Bucharest.

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"The hub is meant to be the one single point for the innovation community in Romania to tap into EIT opportunities. And one of the objectives is to reduce the disparities and the innovation gap," Silvia Ursu, EIT community officer for the Romanian hub, tells Impact Loop ahead of the hub’s official launch on Thursday.

Better access to investors

It’s clear from the launch’s guest list that it’s a big deal. Speakers include Romanian education minister Daniel-Ovidiu David and European Commission member Roxana Mînzatu.

"The EIT is the largest European innovation ecosystem and it brings together students and entrepreneurs with investors, researchers and academia. So this is the largest ecosystem we have in Europe to foster innovation and support scalable solutions to create global impact," Ursu says.

The EIT now has a network of 17 European community hubs that aim to connect startup founders and entrepreneurs with investors, expertise and partnerships. Several more hubs are set to open this year in Greece, Albania, Poland, Serbia and other countries.

The Romanian hub will be run by Iceberg+, a consulting firm that also has experience coordinating other EIT hubs.

For Romanian founders, it could grant better access to both domestic and international investors and angel networks – as well as training and educational programs.

Only two unicorns

So far, only two Romanian startups have grown to unicorn status with a $1 billion evaluation – robotics automation company UiPath and online retailer eMAG. And that happened in 2018.

But Ursu says the growth of companies like Romanian energy company Prime Batteries shows Romania can be a bigger player in the climate tech world.

"There is a lot of potential here with spill-over into different industries, including health and new ideas around climate tech and energy," she says.