Blog

No matter how incipient it might be, any business called startup goes through a series of stages until it reaches maturity. Once I have defined it as a venture initiative looking for a business model, the most natural classification of the stages has to do with the type of financing. (more…)

The top 10 technological trends of 2019 include, according to consulting company Gartner, exotic notions, such as “digital germs” or the software programmed by the artificial intelligence. The top also includes relatively better known technologies, such as Blockchain or quantum computing.

Autonomous Things. From robots to drones and driverless cars, these are assisted by artificial intelligence (AI) and, in the near future, they will turn from independent devices to interconnected artificial communities. For instance, an autonomous car could deliver the package to your door, but the robot aboard the car will bring it inside your house.

Augmented Analytics. AI – as Machine Learning (ML) – will intervene also in the presentation and processing of various sets of data and metrics used in marketing, sales or finances. Artificial intelligence will automate and assist the entire data processing phase, which could lead to a so called Citizen Data Science. This means that anyone will be able to access and process complex sets of data, starting from clear research ideas, without having, however, advanced technical competencies.

AI-Driven Development. It may seem something of a sci-fi nature to think that machines could program other machines, but a working environment in which the human programmer is assisted by algorithms and artificial tools already exists. Gartner estimates that by 2022, 40% of the new projects will be carried out by human developers assisted by AI.

Digital Twins. This has to do with digital models or replicas of offline reality in the virtual environment. The “digital twins” has existed since the birth of the computer assisted design, but this kind of virtual replica will proliferate fast given the billions of sensors of the Internet of Things class which has started to come out globally.

Empowered Edge. Edge computing is somehow the opposite of cloud. In other words, it involves data processing as close as possible to the source of the data, to save the effort of sending them to a network. Gartner predicts that to the IoT devices, AI specialized chips will be added over the next few years to be used for the data processing in the vicinity of the source.

Immersive Experience. This is about all technologies in the Virtual Realty/Augmented Reality class, which will create a continuum between virtual and offline world, using all human senses and eliminating barriers such as the screen. If this sounds sci-fi to you, think about the temperature sensors in smartphones or the wearables that measure your pulse.

Blockchain. This has to do with the technology that allows for the decentralized and online keeping of just any kind of lists, under condition of maximum safety. So far, we have seen this work in the controversial field of cryptocurrencies, which replace costly banks by this type of record keeping. However, this technology is a very versatile one and, according to some specialists, Bitcoin and all the other virtual coins will disappear, but Blockchain will remain.

Smart Spaces. It is an extrapolation of the idea of smart cities or houses to just any types of spaces in which the connected devices will interact with themselves and also with human intelligence. More specifically, after smart houses we may have, in the near future, also Intelligent Workplaces. To the wireless printer and other facilities that we currently have, an AI component will be added, consisting mainly in digital assistants and a data structure easy to access and use.

Digital Ethics and Privacy. The European Union has already made the first decisive move in this field with the General Data Protection Regulation, adopted in May 2018, but this issue is of maximum interest also in the USA and Canada or other countries without new regulations. As it can be depicted from the troubles with which Facebook has been faced over the last few years, a part of the data privacy requirement will be carried out by private players, by self-regulation and internal protection.

Quantum Computing. Subatomic particle computers, characterized by different values of truth than yes-no/0-1, will become more than a research topic in the near future. They are a natural asset in fields like pharma, which deals with a complex molecular structure, symmetrical with the logical model on which quantic computers are based.

LinkedIn updated at the beginning of this fall the top of the most interesting startups in 2018. As expected, the top is dominated by tech companies. I’ll analyze in brief of few of them. (more…)

In spite - or maybe because - of this year’s devaluation, cryptocurrencies, or the alternative currencies of the Bitcoin or Ethereum class are seen by the specialists as an investment opportunity. However, be cautious! The high volatility of these investments makes me recommend some prudence in this respect. 

• Bitcoin continues to decrease. On 22 November, when I wrote this article, the exchange rate (if we may use this term for cryptocurrencies) was of about $4,500. This means that, roughly speaking, Bitcoin has lost all the ground gained up to 2017. This could be a good time to buy, but I, myself, haven’t bought any. First of all, because I do not see myself an expert in speculative earnings and, secondly, I believe in thoroughly built things.
• Ethereum is slightly increasing. The second best known currency exceeded, also on 22 November, 133 dollars, after a historical minimum value of $125.6. This is a slight increase in a long time. If this trend continues over the following months or years, we may be able to speak of a start of stabilization on the cryptocurrency market, after what I believe to have been an initial bubble. For the time being, however, we do not have solid grounds to be optimistic.
• Forbes said in an article that the alternative coins are “in a transition from a bad idea to an actual scam”. Whether such a pessimistic view will take shape in the future remains to be seen. The technology behind cryptocurrencies is still a valid and revolutionary idea. The history of mankind has seen that atomic fission has led to both bombs and nuclear power plants. We should keep an eye on the Blockchain.
• Also read this article from Bloomberg on the investigation carried out by the American Justice Department in respect of the cryptocurrencies price manipulation. Spoiler: is has to do with traders and not with the currency itself.
• To conclude on an optimistic tone, it is also Forbes that says that alternative currencies would be great if the money holders understood the technology. Let’s think a bit about countries like Somalia and China: the money could reach the relatives of those who had left their countries to work abroad and this without the substantial commissions charged by banks or Western Union. I for one am very curious how many if any of the Romanians working abroad use such a solution.

I have purposely looked through contradictory information, just to give you an indication of the complexity of the cryptocurrency market. This article does not aim at discouraging you to invest in such difficult assets, but it is a starting point towards a type of financial education that schools, even those of higher education, provide neither in Romania, nor in other countries. Find the answers to your questions online, as we are living in times when information is (quasi-)free and it produces value.

Bucharest, 15 November 2018. For immediate release. Romanian entrepreneur Octavian Pătraşcu successfully concluded the sale of a building located in Bucharest, Calderon street no. 70, to a foreign investment fund, interested in office buildings in premium locations, present on the Romanian market since 2006.  "We acquired the building one and a half years ago," said businessman Octavian Pătraşcu. "We made the building profitable by acquiring trusted, quality tenants and improving the internal organization and cost-effectiveness. This resulted in a good yield for me and a solid, long-term investment for the buyer." Octavian Pătraşcu is a Romanian businessman with a successful career in fintech, startups and real estate. As an angel investor, he has two successful exits in fintech and one for Vector Watch, a smart Romanian watch, which was acquired by the famous Fitbit wearables company. "For Calderon 70, we’ve sold after the asset became more valuable due to the tenants, but also to market growth," said Pătrașcu.

If you have reached this blog post, this means you have done your homework and you know the academic definition of an angel investor: the term originates from the financers of the plays on Broadway and refers to a person who ensures the cash flow of an incipient business usually with their own money. It sounds romantic, as in a play: a young man with a dream that might change the world is visited one night by a supernatural creature, filthy reach, who helps him make the dream come true and, of course, to change the world. However, you can figure it out that reality is actually different:

• Angel investors finance startups, therefore need other guarantees than the profit margin. It is very simple: startups do not generate profit in the incipient stages and the contributions in capital of the first investors replace exactly this kind of profitability. That is why the investment they make at time zero will be subsequently converted in shares or in another form of participation to business.
• Angel investors usually invest their own money, which makes them more involved in the business in which they invest. It is all but natural that they want to keep close to the entrepreneurs they finance, to ask questions and expect information on the evolution of the business. That is why the investments are made on phases: according to the success of the first phases, the subsequent funding is ensured.
• Angel investors offer more favorable conditions on a short and medium-term than the banks or the investment funds. They do not require either interests or dividends, but that is exactly why they expect, on the long run, profitability (Internal Rate of Return) of 20-30%.

However, if you consider these constraints more thoroughly, you realize they are in fact benefits. The questions asked by a competent angel investor are not obstacles, but tools that help you clarify the objectives. The experience brought about by this kind of financers from other businesses means a contribution of financial culture and not only. Also, remember: a person who is not a parent, nor a spouse has been willing to invest their money in you and this obligates you and makes you a better performing entrepreneur. In a nutshell, a good angel investor is not necessarily measured by the number of zeros of the amount they make available to you. Together with that money, you can win an experienced partner, a sort of brains of your business, which influences you for the better, affecting neither your capacity of entrepreneur nor the reputation that comes with success.