GapMinder-TechAngels, the first partnership in Romania between an institutional investor and private ones

Business, Start Up

GapMinder Venture Partners BV and TechAngels announce the first partnership in Romania between an institutional investor and private ones. Based on it, GapMinder will participate with a similar amount in any round of investments between 40,000 and 200,000 euro made by TechAngels. During each round of investments will be involved at least two private angel investors.

The main goal of the partnership is to increase the amount of angel-investments. It is estimated that in the following 12 months will be made between 5 up to 10 investments

The companies selected for this program will have access to a cumulated round of investments of up to 400,000 euro, also benefiting from the support of the institutional investor GapMinder by accessing its partners’ know-how and other potential rounds of investments.

“Angel investor investments are the basis of any healthy startups ecosystem, which is the reason why investors can have a substantial contribution for the companies’ development. The angel investors are mainly successful entrepreneurs. Thus, a startup can benefit from their experience regarding multiple business aspects, from employment policy to products strategy and operational aspects. The partnership with TechAngels is the first step we make in this direction and we are open to similar partnerships with other angel investors groups, in the future”, said Cosmin Ochișor, GapMinder Partner.

GapMinder-TechAngels partnership aspires to becoming a model of good practice regarding the way in which such investments are made, with the aim to equally protect the companies which benefit from the investments and the investors.

“The venture capital investments’ philosophy is that the founders of the company should maintain control over these ones as much as possible and after two or three rounds of investments they should still own over 50% of the company”, explained Cosmin Ochișor.

On his turn, Malin Iulian Ștefănescu, TechAngels President added:

“Technological innovation can be Romania’s main competitive advantage. TechAngels brings together angel investors who, individually or together, in syndicated rounds, provide financial resources and business experience to facilitate the growth and internationalization of Romanian technology start-ups. TechAngels investors are entrepreneurs and executives from corporations, with significant experience in their area of activity and well connected, not only with the leaders from different industries, but also with national and abroad investment funds. The partnership with GapMinder comes after an excellent collaboration over time and I believe that it will increase both the funds’ volume to which startups will have access, as well as the value of their results”.

Since January 2018, when it was created, until now, GapMinder invested in 31 companies and reached a threshold of 40 million Euro as fund size.

GapMinder Venture Partners BV is an investment fund set to provide capital for early stage companies with traction and for developing technology SMEs in expansion phase both on local or international level. The focus is on technology and services, sectorial diversification, product-centric and team-centric targets. GapMinder invests in Series A, Seed, and pre-Seed rounds.

Fund’s partners have a hands-on approach as investors, enhancing companies’ organic growth via direct involvement in operational streamlining, corporate governance, financial discipline, and coaching management. The fund is co-financed through the Competitiveness Operational Program 2014-2020.

TechAngels was founded in 2013 with the aim of becoming a common meeting point between tech startups and investors. The group has two main objectives: educate and support young entrepreneurs throughout investments, access to the accelerations programs and many other resources necessary for developing their own business and to encourage the potential angel investors to take the first steps in this field.

European Investment Fund (EIF) is part of the European Investment Bank Group and is the main venture capital for SMEs in Europe, via venture capital instruments, guarantees and microfinance. In Romania, the EIF implements financial instruments funded through structural and investment funds: JEREMIE 2007-2013, SME Initiative and financial instruments from PO Competitiveness, Regional Operational Program and NRDP.

The Competitiveness Operational Program 2014-2020 (POC) supports investments to meet the needs and challenges of low levels of economic competitiveness, in particular with regard to (a) insufficient support for research, development and innovation and (b) infrastructure developed by Technology Information and Communication. POC benefits from a € 1.33 billion allocation from the European Regional Development Fund.