Role of alternative finance
There are no reliable numbers available of the crowdfunding volume in Romania.
There are two larger platforms which offer opportunity for innovative projects to be launched in order to raise funding,
The review of crowdfunding regulations performed by ECN at the end of 2014, indicates that in 2014, Multifinantare Project financed one project in the artistic sector for EUR 1,500. Other projects are still pending, such as a project regarding a blood substitute amounting to EUR 2,000. Since the end of 2013, Crestem Idei managed to finance another 11 projects and obtained more than EUR 20,000.
There is an overall positive trend in the area of central and eastern europe. No specific data about Romania is available.
Currently, there are approximately 8 active crowdfunding platforms in the country: Crestemidei.ro, Multifinantare.ro, PotSiEu.ro, We-are-here.r, Kazuu.ro, Bursabinelui.ro, Crowdfunding oferit de Universitatea Babeş-Bolyai – Cluj-Napoca, and Sprijina.ro.
There is one platform initiated by the University Babeş-Bolyai aiming at connecting students and financing small university projects.
There is only one crowdfunding platform (Multifi nantare) and it mixes both equity and rewards crowdfunding.
|Reward and donation-based crowdfunding||
Most of the crowdfunding projects are based on donation or rewards-based crowdfunding.
|Is there a specific national regulation in place applying to crowdfunding?||
- Most of the projects are financed through donations.
- Law no 297/2004 on capital markets requires approval of a prospectus by the FSA;
A draft proposal of the law for participatory financing development (“Crowdfunding Project”) was launched for public discussion, by the Department for SME Business Environment and Tourism in September 2014. Since then, there has been no further development.
(source: Osborne Clarke Germany (2016): Review of Crowdfunding Regulation & Market Developments. In: CrowdFundRES - Unleashing the potential of Crowdfunding for Financing Renewable Energy Projects. Deliverable 3.1 (PU).
Ministerul Finanțelor Publice - Ministry of Public Finance http://www.mfinante.gov.ro/acasa.html?method=inceput&pagina=acasa
|Matching funds initiatives|
|Crowdfunding guidelines for entrepreneurs / investors||
The Financial Education centre for capital market investors (ASF-SIIF) has published, on its website, a short guide to what crowdfunding is and the potential risks.
|Guidelines for researchers on crowdfunding for R&I|
NAME: Crestem idei
PROJECT NAME: World's Lightest Armor
PLATFORM: Crestem idei
DESCRIPTION: This project aimed at creating a light Kevlar-made armor which is applicable directly under your clothes. This technology provides a practical solution for having more protection without losing comfort. The product aims to satisfy the widespread need for safety. The project achieved its objective and was funded in June 2016.
AMOUNT RAISED: € 1,199 out of € 1,102
Furthermore, Romanians are not genuinely willing to take risks. Lack of business experience and knowledge, shortage of capital and low incomes are also barriers for enabling crowdfunding projects. The lack of confidence increases reluctance to participate on such platforms. Back in the 1990’s, several institutional attempts to build on pyramidal type financial mechanisms ended in complete failure, causing many people to lose lots of money. This brought on a significant backtrack and mistrust from the general public to any sort of financial breakthroughs.
Casi Project Policy Brief for Romania
Cristian Moisoiu, Kaisa Matschoss, Petteri Repo, Anita Tregner-Mlinaric (2015): Crowdfunding in sustainable innovation - Insights from and for Romania.