Innovative Funding Solutions Explored at "Alternative Funding for Startups and SMEs" Conference in Moldova
Chisinau, December 09, 2023 - Identifying funding sources and exploring options for business and startup development were the main topics of the conference "Alternative Funding for Startups and SMEs" held in Chisinau. The conference covered topics such as crowdfunding, business angels, venture capital funds, equity funding, funding programs, and grants—additional financing options for entrepreneurs at the beginning of their journey who lack fixed assets or guarantees to obtain the necessary funds. The event brought together officials, entrepreneurs, startup founders, investors, and individuals interested in alternative funding methods available in the local market.
Dumitru Alaiba, Deputy Prime Minister, Minister of Regional Development and Digitalization, stated,
"Currently, in the Republic of Moldova, we have about 50 thousand companies, and from a certain perspective, we need more entrepreneurs to create more value, contributing to the growth of the economy. One of our main priorities is to promote entrepreneurship, and the success of each entrepreneur is our main mission. For this, we work primarily to provide maximum freedom, as we know the startup community prefers doing business, and we must help them feel like they are in a vast ocean, where they can create and benefit from support."
John Riordan, Deputy Head of the USAID Mission in Moldova, expressed,
"It's a pleasure to be here because there is a lot of talent and innovation in this room, which is super impressive to me. The theme of alternative financing is of real interest, both for Moldova and our partners. USAID is taking the approach to developing the startup and innovation system in Moldova to a new level. Thus, Moldova is becoming known as a destination for startups, including participation in international and local events. Meanwhile, a more robust infrastructure for entrepreneurs and SMEs is being built, encouraging them to grow in Moldova, to keep talents here at home—a goal we have been working on for some time and is starting to yield results."
The first panel discussion focused on lending, a financing technique that operates based on models connecting loans with investors, and Equity Crowdfunding—a mechanism allowing large groups of investors to fund startups in exchange for equity. The guests discussed how alternative instruments can enable citizens to invest their available resources in business projects. Discussions also focused on the efficiency of the legal framework for alternative financing, including the evolution of crowdfunding and regulations adopted to support new financing methods.
Natalia Bejan, Executive Director of Startup Moldova, said,
"The purpose of this event is primarily to inform entrepreneurs and startup founders that there are alternative financing methods. We come before them with eloquent examples where small businesses have benefited from financial support, either from grants or dedicated government programs. The conference is a starting point for those who want to launch a crowdfunding campaign, wish to attract private investors, or are about to apply for financial support within a program—to inform themselves and make informed decisions regarding their business."
Tudor Darie, Founder and CEO of Fagura, stated,
"Raising capital through crowdfunding helps companies easily obtain funding through loans or equity. Companies also gain validation from the community and new customers or partners. It's essential to choose the right instrument. Sometimes, the business needs a loan if every invested euro generates a profit of 2 or 3. Other times, the company needs equity crowdfunding to attract funds in exchange for shares. For a professional equity crowdfunding campaign, entrepreneurs need about six months. The first step is assessing the community's interest in investing in the business. For a loan, you need 15 minutes, and you submit the application; everything is simple and transparent."
Another topic addressed emphasized funding programs and grants offered by our country's authorities for early-stage entrepreneurs looking to expand their business. Company founders who have already benefited from financial support shared their contracting grant experience, the challenges in the field, and the need for constant support from authorities in scaling their business.
Olga Melniciuc, Founder of investitii.md, mentioned,
"Investments are needed anytime, anywhere for business development, especially when companies lack resources to scale their business ideas. For example, investments from Business Angels are for those companies that have access to funds only from private investors, and these people help them grow faster, develop the product, attract partners, make the first sales, and enter other markets. Plus, the company is already generating income and enters this capital fund 'game' and can enter other markets to benefit from investments."
The event also welcomed entrepreneurs from Romania, such as Cosmin Ochișor, VC Partner GapMinder, who shared their approach as investors, strategic consultancy, and direct involvement in operational organization, corporate governance, and financial discipline among companies looking to expand rapidly. An interactive workshop was organized during the conference, where participants had the opportunity to interact directly with industry experts, ask questions, and exchange experiences and best practices to develop their business.
According to the study "Impact of Foreign Direct Investment on the Moldovan Economy, 2012-2022," foreign direct investments in our country increased by approximately 50% compared to 2021 and about 16% compared to 2019. Meanwhile, enterprises with foreign direct investments are, on average, twice as productive, directly reflecting in higher economic growth.
The conference "Alternative Funding for Startups and SMEs" was organized by Startup Moldova, investitii.MD, and Fagura Moldova, with the support of the Future Technologies Activity, funded by USAID Moldova, Sweden, and Ukaid.
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