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Romania, one of the leaders in European tech’s fastest-growing regions

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Central and Eastern Europe is catching the attention of foreign investors and Romania could become an important European tech ecosystem,http://business-review.eu/ reads

Romania and Estonia rank first among Central and Eastern European (CEE) countries in terms of the value of investments in local startups in the last seven years, according to a Dealroom study.

Romanian startups have raised $ 1.3 billion in investment since 2013, on par with Estonian startups. Poland ranks third in the region with investments of $ 0.9 billion, followed by Lithuania ($ 0.6 billion) and Hungary ($ 0.3 billion).

Based on the value of venture capital investments in early stage phase, Estonia ranks first with $ 1 billion in investment, followed by Poland ($ 0.7 billion) and Romania, Hungary and Lithuania (each with $ 0.3 billion). Poland also surpasses Romania in terms of the number of venture capital financing rounds, with 823 such rounds, compared to 266 rounds for Romanian startups.

In the last decade, the CEE region has created 8 “unicorns”, or private companies valued at at least 1 billion dollars, Romania being present with 2 unicorns on the list: UiPath, startup detached in 2015 from a Romanian company specialised in providing solutions software, recently valued at over $ 10 billion, and eMAG.

As a context, more than 20 tech Romanian startups raised financing from venture capital funds, business angels and crowdfunding during the first semester of 2020.

Romania has the second largest pool of developers in CEE

Romania has one of the largest pool of developers in CEE and this could be the base of the new generation of successful IT startups. Romania is long been known as home to a pool of great developer talent – the second largest in Central and Eastern Europe (CEE) at 139.000, more than countries like Czech Republic and Hungary.

The regional champion is Poland, with 401.000, over twice the number of Romania in second place, according to a Polish Development Fund (PFR) study.

Czech Republic, the third country in Central and Eastern Europe, has 130.000 IT developers and Hungary 105.000 programmers.

However, a recent study conducted by Codecool shows that Romania has an annual deficit of over 15,400 programmers.

Data published by the National Institute of Statistics (INS) indicated a number of 140,000 employees in the IT industry in Romania, most of them in Bucharest (46%), Cluj (12%), Timisoara (9 %) and Iasi (6%).

This year, in May, the average net salaries of Romanian employees working in the field of information technology were about 7,800 lei (1,600 euros), being the highest in the Romanian economy, but among the lowest in the IT industry globally, the local market remains extremely competitive in terms of wage costs.

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