The world feels tense. A potential US recession, ongoing war in Ukraine, political instability at home and abroad — these aren’t the kinds of headlines that encourage risk-taking. For startups in Romania, the environment in 2025 is anything but predictable.

But uncertainty doesn’t stop innovation. It just changes how investors think — and how founders must act.

It feels like déjà vu

Remember 2021, when a good pitch deck and some traction could get you a seed round in just a few weeks? That hasn’t been the case for a while. As 2025 began, things were starting to look better — investors were slowly coming back, and there was more hope in the air.

But that didn’t last. In just a few months, the mood changed again. With new uncertainty around the economy and global politics, funding has slowed once more. Startups are back to focusing on the basics: extending runway, keeping customers happy, and building steady revenue.

Robert Herscovici, Investment Director at GapMinder, has a clear message for founders: 

“Startups should focus on cost management and churn management. It’s much harder to raise during a recession — VCs are focused on protecting their portfolios.”

VCs aren’t necessarily investing less overall — but they are investing differently. They’re slower, more cautious, and more focused on startups that can prove resilience, not just ambition.

The angels still fly — but not all of them

On a positive note, angel investors, who invest their own money and don’t answer to institutional backers, remain an important source of early capital. But even here, the mood is mixed.

Some are retreating, choosing to wait out the storm. Others are still looking for chances to get in early on the next wave of innovation — especially in sectors that have become strategic for Europe, like defense and space.

“There will always be investors who want to multiply their capital and be part of something meaningful,” says Marius Istrate, President of TechAngels. “But in uncertain times, we can expect some angels to have tighter pockets.”