BR Interview | On a mission to increase the number of Romanian IP-based products in the world

Innovation Labs Demo Day 2024 gathered around 500 attendees from the local startup ecosystem as part of a wider effort to help more local startups go global. Daniel Rosner , Innovation Labs Co-founder & Chief Growth Officer, spoke to BR about the need to boost the country’s startup culture and the emergence of founder teams straight from high school.

By Ovidiu Posirca

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What were the highlights of this year’s Innovation Labs Demo Day and how did the winners stand out?

Innovation Labs 2024 was filled with many highlights and firsts. One standout moment was the launch of our long-term strategic partnership with venture capital firm Early Game Ventures. As a first, during Demo Day they offered their own investment prizes, totalling EUR 500,000, to two ambitious teams that were enrolled in this programme edition with promising cybersecurity startup ideas. Additionally, our updated curriculum prototyped in the Bucharest programme, focusing on product management, now places greater emphasis on dedicated mentorship and one-on-one contact with industry professionals.

16 teams qualified in the national Demo Day final, out of 85 early-stage startups that benefited from the free-of-charge mentorship programme for 10 weeks. Additionally, 13 other teams had the opportunity to showcase their tech MVPs during the Startups’ Fair, which took place before the Demo Day pitches on stage. As a Demo Day conclusion, six teams were awarded on stage, based on the votes received from 36 jury members.

This year's champions introduced groundbreaking innovations in fields like medical recovery, gaming, cybersecurity, and sustainability, leveraging the resources and guidance provided by the Innovation Labs programme.

Innovation Labs Demo Day gathered up to 500 attendees from the entrepreneurial ecosystem, including startups, investors, mentors, jury members, entrepreneurs, as well as relevant stakeholders from the private and public sectors.

What trends are you seeing among the new generations of startups accepted in your accelerator?

The 2024 edition of Innovation Labs encouraged participants to develop projects that addressed one of the following nine business verticals: Agriculture, Blockchain, Cybersecurity, DevTools, DigitalHealth, Lifestyle, Retail & E-Commerce, Smart City & Industry 4.0, Sustainability. These are only guidelines, since most of the products developed within the programme can fall within more than one category. We have noticed that participants were increasingly willing to integrate new technologies into their products. Over the years, we’ve observed that the top trends tend to be followed, whether we’re talking about blockchain or AI, VR or AR, software or hardware.

As a result, during and after the 2020 pandemic we witnessed an emphasis on AI and MedTech projects, while projects in the last 2 years have aimed to alleviate social problems and sustainability concerns.

We’re noticing increased interest from high school students wanting to participate in Innovation Labs. There were 4 high school teams in this year’s edition.

How open are startup founders to the support they get from Innovation Labs mentors?

Mentorship, particularly from certified industry experts, is crucial for early-stage startups as it provides invaluable insights into the industry they aim to enter and can significantly influence the success of their business ideas. This is why we have revamped the curriculum in Bucharest, with more focus on product management, to help teams validate their business ideas at an earlier stage through dedicated mentorship.

How can Romania further boost its entrepreneurial culture? Do established startups play a role in this process?

Romania has been making strides over the past years towards fostering a tech entrepreneurial ecosystem. This progress is evident in the motivations of our programme participants. Multiple stakeholders, including those in the educational system, policymakers, and established companies and startups all play crucial roles in enhancing Romania’s entrepreneurial culture.

A key factor in cultivating an entrepreneurial mindset is education. To this end, Innovation Labs has partnered up with 19 universities across Romania to reach students and introduce them to the possibility of starting their own startups. One of the main long-term goals of our programme is to increase the number of Romanian IP-based products in the world.

Established startups also have a critical role in this process. Looking at examples from Poland, Ireland, and Israel, we can see how successful startups with significant exits have created a ripple effect, energising the entire entrepreneurial ecosystem.

By sharing their experiences, mentoring, and investing in new ventures, established startups can significantly contribute to the growth of Romania’s entrepreneurial landscape. We also encourage the sharing of best practices and experiences within our programme. Each year, we invite Innovation Labs alumni to share their dos and don’ts with current cohorts, offering insights on navigating the programme and scaling early-stage startups.

What are the medium- and long-term goals of Innovation Labs?

The medium and long-term goals of Innovation Labs are centred around expanding and fortifying its presence in the entrepreneurial and innovation landscape by delivering excellence in all its activities. We will prototype new ways of learning in the programme, to increase mentorship efficiency during the 10 weeks of intense mentorship activity.

We plan to enhance team diversity and effectiveness through interdisciplinary collaboration while increasing the number of ambassadors and providing teams with open challenges developed with the support of programme partners. Innovation Labs also aims to establish a robust alumni network, engage in strategic dialogues within the entrepreneurial ecosystem, and foster partnerships with public institutions to amplify its impact.

How can Romania have more startups with the capacity to scale up in the region?

When considering a startups’ scaleup potential, it’s essential to address both structural and social factors. Structurally, this involves improving access to early-stage funding and investment, as well as expanding the presence of startup hubs, co-working spaces, and accelerators. Additionally, streamlining bureaucratic processes and integrating entrepreneurship education into university curricula or earlier stages of education are pivotal steps.

On the social front, fostering a culture that embraces risk-taking, innovation, and resilience is equally important. Compared to neighbouring countries like Bulgaria, Romania tends to approach entrepreneurship more conservatively. Encouraging a shift towards valuing entrepreneurial initiatives and highlighting success stories can inspire more individuals to pursue business ventures.

Which are some Innovation Labs Accelerator alumni that stand out in the local startup ecosystem?

Innovation Labs has incubated numerous successful startups, each making significant strides in their respective fields.

CODA Intelligence, a white-label, multi-tenant, cloud-agnostic SaaS vulnerability management platform, was acquired in 2024 by American company PDQ, after almost 10 years of growth.

Pentest Tools, for instance, has emerged as a leading online platform for penetration testing and vulnerability assessments, serving over 500 active customers worldwide and employing over 60 people.

OxidOS, specialising in secure operating systems and tools for embedded software in the automotive industry, secured a substantial EUR 1.2 million funding round in August 2022.

Veridion (formerly Soleadify), another notable success story, is building a self-updating global database of businesses, leveraging automated data extraction to create detailed business profiles. Their innovative approach attracted over EUR 7 million in funding in the last 4 years.

Many of the successful startups born within Innovation Labs continue to be involved in the programme by offering mentorship and diverse resources.