Raiifeisen Bank Romania to launch platform for startups

Raiffeisen Bank said on Tuesday it will launch on March 20 a platform to support Romanian startups.

The Factory by Raiffeisen Bank financing programme will take place online between March 20 and June 29, as a multi-stage project contest, the bank said in a press release.

Following the competition, the most innovative and viable business ideas will be supported with up to 50,000 euro ($40,500).

The teams selected for the final stage will be invited to present their business plan in detail.

Through this programme, Raiffeisen Bank aims to encourage startups a with solid business plans. Credits will be provided through the COSME program, with a guarantee from the European Investment Fund.

“Startups have a hard time getting funding from financial-banking institutions, as their average rate of success is 50%. The program is a chance for entrepreneurs who believe in their business ideas and in their ability to succeed,” Raiffeisen Bank’s retail vice president Vladimir Kalinov said.

Loans requested by the participants may be overdraft or investment type, and the repayment term will be up to 5 years for investments and 12 months for overdraft with preferential interest. Also, the selected startup companies will be exempt from the grant fee and will benefit from a grace period of up to 6 months.