Fund of Funds for Tech Start-ups and SMEs in Romania: A New Chance of Continuous Funding
Start-ups and small and medium-sized enterprises (SMEs) in the technology sector have grown rapidly in Romania in recent years, but access to funding remains a major challenge.
Todos & Company editorial team · EU funding consultancy since 2006
The context and the need for a permanent investment mechanism
Start-ups and small and medium-sized enterprises (SMEs) in the technology sector have grown rapidly in Romania in recent years, yet access to funding remains a major challenge. The Romanian Government has responded to this need with an initiative to create a permanent funding mechanism, delivered through the establishment of a Fund of Funds dedicated exclusively to tech start-ups and SMEs. The purpose of this mechanism is to provide a stable and predictable source of capital for innovative companies, in line with European trends of permanent support for the digital entrepreneurial ecosystem.
The memorandum adopted at the Government meeting of 21 May 2026 signals a clear commitment to structured support for the technology sector, highlighting the Government's recognition of the sector's potential to contribute to sustainable economic development. The initiative comes at a time when many tech start-ups, including in areas such as artificial intelligence, fintech, software and cloud solutions, are struggling to access suitable funding to scale their products and services.
Who the eligible beneficiaries are and which types of company can access the funds
The Fund of Funds is aimed mainly at Romanian start-ups operating in technology fields and at technology SMEs that need capital for development. These include both early-stage firms with high potential for innovation and scaling, and established technical SMEs that wish to expand their operations or enter foreign markets.
Beneficiaries must meet specific criteria relating to their activity (a focus on technology and innovation), demonstrate growth potential and develop scalable products or services. Companies with a clear business model and a sustainable trajectory, which can use investment effectively to grow their team, advance their technology and reach new markets, may also benefit.
Requirements and documentation needed to apply
To submit an application for funding under this mechanism, companies must prepare comprehensive documentation. This includes a detailed business plan justifying the need for funding, financial projections for the next few years, development and scaling strategies, and a clear presentation of the technical and management team.
Funding sources will be managed through the Fund of Funds, which will work with venture capital funds, private financial entities and other complementary funding instruments. Companies will have to meet legal and compliance requirements, including eligibility checks, and the capital raised will be used in line with the approved objectives, with continuous monitoring by the fund's managers.
The expected impact on the Romanian tech entrepreneurial ecosystem
Implementing this permanent funding mechanism will transform the way tech start-ups and SMEs in Romania access the capital they need. Instead of sporadic funding or pilot projects of limited duration, companies will be able to benefit from a continuous, sustained process adapted to the development needs of each business stage.
The number of start-ups accessing capital is expected to rise, the investment ecosystem to become more professional, and the links between the private sector, government and the academic or research community to grow stronger. In addition, the initiative may help create new jobs in high value-added fields and improve Romania's competitiveness on the European technology stage.
What companies need to prepare and what to watch out for
Interested companies should prepare in good time to make the most of this opportunity. Practical recommendations include the following framework:
- Regular monitoring – Applicants should follow official updates on how to apply, eligibility conditions and submission deadlines.
- Preparing a solid business plan – A business plan that sets out very clearly the growth strategy, the use of funds and the estimated impact is essential.
- Strengthening the team and governance – Investors will assess the team's ability to implement its plans and to manage the business's opportunities and risks.
- Checking eligibility – Ensure compliance with the technical, fiscal and legal criteria set out in the funding scheme.
- Specialist consultancy – Drawing on expertise in EU funds and venture capital investment is recommended to optimise your chances of success.
Access to the permanent funding mechanism can be decisive for Romanian tech companies seeking sustainable development and growth in competitive markets. Active involvement, proper preparation and a clear strategy will be assets for any company that wants to turn this opportunity into reality.
Want to find out what non-refundable funding you can access?
The Todos Company team helps you with the whole process: from checking eligibility and calculating your score, to preparing the application file and submitting the project.
