The era of cheap capital that enabled aggressive spending on customer acquisition is over. Iterate faster – with scarce resources, you can’t spend too much time validating your hypothesis.
Founders should focus on generating revenues, rather than growth at all costs and should iterate faster as with scarce resources, they can’t spend too much time validating their hypothesis, are some pieces of advice offered by three of the more than 100 mentors of the fifth edition of Startup Reaktor, the first Go-To-Market accelerator in South-Eastern Europe, launched by the Romanian Tech Startups Association – ROTSA. Startup Reaktor is dedicated to early-stage tech startups in the South-Eastern European region that want validation and rapid international expansion, particularly in the top 10 countries in Western Europe, the UK, and the Scandinavian area.
Founders can sign up for Startup Reaktor until Friday, November 15th.
The accelerator is open to startups that belong to sectors such as data automation, artificial intelligence, enterprise software, CleanTech, FinTech, eHealth, PropTech, EdTech & future of work, AgriTech, market places, transportation & mobility, aerospace & defence, smart-city, and cybersecurity and data & analytics.
Accelerator’s evaluation criteria include: the composition and expertise of the founding team, the business model, the targeted impact of the solution, the potential for international scaling, the size of the targeted market, the identified competition, and the solution validation and defendability.
Access to over 100 international experts
The activities of the Startup Reaktor are aimed in particular at enabling startups to quickly launch and develop in international markets, to demonstrate the investment value of the startup at the end of the accelerator program and to facilitate the attraction of pre-seed funding between EUR 50,000 – 300,000 through the traditional investors associated with the accelerator program: Seedblink, TechAngels Romania and EIT Digital.
Startup Reaktor is backed by over 30 European tech ecosystem organizations and founders will also have access to over 100 international experts (mentors and business developers) from 10 partner countries in Western Europe, Scandinavia and the UK, to guide them in achieving their international expansion goals. With expert advice from mentors, the founders will be able to identify and launch in a new European markets or to find distribution channels that can generate immediate traction for their companies’ solutions.
Sell, sell, sell
“In a context of scarce financing you should ask yourself:«How AI can bring my actual technology/solution to another level? How can AI assist each team member of the company? Can some recruitment be delayed by using AI?». Then sell, sell, sell: focus on finding your first paying customers locally and internationally. Iterate faster: with scarce resources, you can’t spend too much time validating hypothesis. You must put in place an efficient test & learn framework”, states Julien Nicolas, Head of International EuraTechnologies, a French tech innovation incubator, and mentor for Startup Reaktor.
Revenues, alternative funding and prioritize existing customers and core markets rather than pursuing aggressive expansion
“First, focus intensely on generating revenues rather than growth at all costs. The era of cheap capital that enabled aggressive spending on customer acquisition is over. Your funding runway is now your lifeline, so optimize unit economics, reduce unnecessary costs, and prioritize building a sustainable business model that generates positive cash flow. Second, look beyond traditional venture capital for funding. Consider alternative financing options like revenue-based financing, corporate strategic partnerships, or government innovation grants (such as Innovate UK), which are particularly accessible in Europe. Third, double down on your existing customers and core markets rather than pursuing aggressive expansion. In capital-constrained environments, it is crucial to solidify your position where you already have traction. Focus on increasing customer lifetime value, reducing churn, and generating referrals from your current user base. This approach not only requires less capital but also demonstrates to potential investors that you can build deep, defensible market positions – a particularly attractive quality when funding is scarce”, says Claudia Duffy, European Patent Attorney, Founder of Innovare IP and mentor for Startup Reaktor.
Claudia Duffy adds that European Commission offer substantial support for startups through programs like Horizon Europe and these sources often come with fewer strings attached than VC funding and can help bridge gaps during this tight funding period.
The UK’s solutions for supporting early-stage startups
As Startup Reaktor addresses startups that aim to expand internationally, Cristina Dragu, Director for Foreign Direct Investment CEN at the British Embassy Bucharest and mentor in the accelerator, reminds founders about the measures the UK Government is taking to support early-stage companies and venture investments in them.
The UK government has extended two leading investment schemes – The Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) – by 10 years from April 2025 to April 2035 in order to support startups.
“Built on over £41 billion investment generated over the last 30 years, the schemes are designed to encourage investment into new or young companies through tax-relief incentives, encouraging innovation, creating jobs and stimulating economic growth”, explains Cristina Dragu.
Developed in partnership with EIT Digital, European Startup Network – Brussels and Strategy Tools – Norway
In its fifth edition, the current program is developed in partnership with Techcelerator, EIT Digital, TechAngels Romania, SeedBlink, European Startup Network – Brussels, Strategy Tools – Norway, as well as local investors.
The startups will also be supported throughout the year to take part in European business missions and conferences that facilitate development in new markets, such as 4YFN in Barcelona, Deep Tech Days in Paris, EU Startups Summit in Malta, Viva Technology in Paris, The Next Web Amsterdam, Tech Week in London, Pirate Summit in Cologne (Germany), Web Summit in Lisbon, Slush in Helsinki.