Two EU-supported PNRR funds, operational in Romania, secure financing for their investments
Romania is set to witness a significant boost in its private equity and venture capital ecosystem, with the allocation of €30 million each to the Sparking Capital II Fund and the PCP SEE II Fund under the National Recovery and Resilience Plan (PNRR).
The Sparking Capital II Fund, managed by the same team behind its successful predecessor, will focus on early-stage technology investments, particularly in sectors such as information technology, business-to-business software, applied artificial intelligence, production process digitalization, fintech, and real estate software (proptech). The aim is to expand and consolidate its technology investment strategy, supporting the private sector with advanced technological solutions.
On the other hand, the PCP SEE II Fund, managed by Provectus Capital Partners, a team rooted in Croatia with operations throughout Southeast Europe, will invest in mature companies rather than early-stage startups. Adopting a multi-sector strategy, it will focus on healthcare, consumer products, and business services.
These funds are part of a broader effort to foster growth in the Romanian economy through targeted investments in technology and mature sectors. The PNRR, with a total budget of €28.5 billion, is based on six pillars addressing Romania's needs while pursuing EU priorities.
The already active funds have invested approximately €90 million in Romanian companies, and it is anticipated that by 2026, around twenty investment funds will secure resources to invest in Romanian firms. The government has approved contributions totaling €242.5 million across 13 funds for investment in Romanian companies.
The European Investment Fund mediates the allocations to the Sparking Capital II and PCP SEE II Funds. The PNRR includes measures on sustainable transport, education, health, building renovation, and digitalization of public administration. It also includes €13.6 billion of non-reimbursable funds (including REPowerEU measures) and €14.9 billion in the PNRR budget are loans under the Recovery and Resilience Facility.
The Sparking Capital II Fund and the PCP SEE II Fund are expected to make a significant contribution to Romania's economic growth and the development of its private equity and venture capital ecosystem. The Sparking Capital II Fund aims to consolidate its early-stage technology investment strategy, while the PCP SEE II Fund will invest in mature companies and follow a multi-sector strategy focused on healthcare, consumer products, and business services.
The Sparking Capital II Fund, with its focus on early-stage technology investments in sectors like information technology, fintech, and proptech, aims to expand and strengthen its strategic approach to technology investments, thereby supporting the Romanian private sector with advanced technological solutions. On the other hand, the PCP SEE II Fund, adopting a multi-sector strategy, plans to invest in mature companies within healthcare, consumer products, and business services, rather than early-stage startups.
