Vlad Cazan, KFactory: ”We are not working with a plan B”

The documentary "Romanian Startups: Roaring Tigers of Europe", made by the start-up.ro team, spans across 33 years of history, from the first entrepreneurs in the transitional years to the initial technology company transactions that brought Romania into the international spotlight.

Romanian Startups: Roaring Tigers of Europe - The Extended Series will present the people who built the Romanian ecosystem and who discussed with the VideoCorp and start-up.ro team for this documentary. In this series you will find the extensive interviews and find out the stories of those who built entrepreneurship in Romania.

Rather than starting with some projections in a Power Point presentation, KFactory began as a project with early customers, evolving into a product-focused startup aimed at transforming manufacturing through digital innovation.

”We built it along the way with an agile approach”, says Vlad, considering this approach crucial for building viable solutions in an undigitized industry like manufacturing.

During our interview for the Romanian Startups: Roaring Tigers of Europe documentary Vlad Cazan, one of the cofounders of industry 4.0 startup KFactory, touched on the importance of thinking internationally from the very first moments, designing their product to solve universal manufacturing problems rather than local ones.

“Each startup should think from the start internationally, otherwise, it’s not working. Our product platform was designed to be replicated and adopted not only in Romania but in Europe, the US, and beyond”, Vlad mentions.

They faced significant challenges raising initial investment, as Romania’s venture capital landscape was immature at the time, with only a handful of funds understanding industry 4.0 solutions.

Despite some disadvantages of starting a deep tech company in Romania, such as smaller funding rounds and a less mature ecosystem, Vlad pointed out Romania’s strong IT talent pool and the spillover benefits from multinational companies as significant competitive advantages.  

• KFactory officially launched in 2019 after initial years of project-based development and accelerator participation.
• The founders’ unique blend of IT and manufacturing experience fueled KFactory’s focus on digitalizing an underserved manufacturing sector.
• The startup began with real projects and customers, evolving organically rather than starting from a traditional business plan.
• International expansion was a strategic priority from day one, targeting global manufacturing challenges.
• KFactory plans to leverage emerging AI and industrial IoT trends to scale and transform manufacturing processes across Europe.

• Undigitalized manufacturing is a huge opportunity: The founders’ insight into manufacturing’s digital gap was pivotal. Despite manufacturing being critical to economies worldwide, it remains one of the least digitized sectors, presenting a large market opportunity for startups like KFactory. Their approach—starting from actual projects and customer needs rather than theoretical ideas—allowed them to build a solution grounded in real industry pain points, increasing their chances of success. This pragmatic approach contrasts with many startups that begin solely with a concept or pitch deck.
• International vision is crucial for startup success: Vlad stresses that a startup, especially in tech and deep tech, must think globally from inception. Building a product that solves universal problems rather than localized issues makes scaling and attracting international investors more feasible. This mindset is essential in relatively small markets like Romania, where domestic demand and capital are limited. It also aligns with global startup norms, where international market fit often determines longevity and funding potential.

• Romania’s IT talent pool is a competitive advantage: Despite ecosystem challenges, Romania benefits from a strong IT talent pool, bolstered by multinational companies establishing service centers in cities like Bucharest and Timisoara. These centers not only provide skilled employees but also elevate the local knowledge base and create a supportive environment for startups. This talent density can offset some disadvantages related to funding or ecosystem maturity and provides a solid foundation for tech ventures like KFactory.
• AI and virtual assistants will accelerate industry 4.0 adoption: Vlad Cazan recognizes AI (including tools like ChatGPT) and virtual engineering assistants as transformative technologies that will drive manufacturing’s digital evolution. Industrial IoT and AI markets are projected to multiply significantly in the next five years, representing a massive growth opportunity. Startups that can integrate these technologies into scalable platforms will lead the industry transformation, helping manufacturing companies overcome digital inertia and improve efficiency, quality, and innovation.

Roaring Tigers of Europe is a production by start-up.ro and Videocorp, part of the Romanian publishing company InternetCorp, active for almost 20 years on the market. The documentary was made with the support of partners BCR, Orange, and 2Performant. Community partners included Guran Consulting Global, How to Web, Launch, Impact Hub Bucharest, Flaviu Simihaian, Rubik Hub, SoftServe, and the Romanian-American University.