Ion Iacob, FlowX.AI, about Romania’s startup ecosystem: from gray communism to full color economy

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.

Ioan Iacob has all the chances to be building the next Romanian unicorn. Emerging as a spinoff from Qualitance in 2020, FlowX.AI enables banks to build and evolve modern digital capabilities - without having to replace existing systems, retraining teams, or compromising on control.

In 2023, FlowX raised a series A investment of 35 million dollars.

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"If you take care of value creation, all other things—money, valuation—will be taken care of automatically. But if you raise a lot of money without creating real value, that’s when you’re going to be in trouble", says Ioan and mentions the need to focus on delivering genuine value rather than chasing funding or hype, grounding success in substance rather than appearances.

At the beginning of June, this year, FlowX.AI unveiled FlowX.AI5, a groundbreaking technology that enables banks and financial institutions to modernize their business processes and technology 4 to 8 times faster, more securely, and more cost-effectively than ever before.

"We’re bringing sexy into the enterprise world. Enterprise software probably defines our lives more than anything else, yet it has received very little innovation and attention compared to consumer technology. We want to change that", Ioan tells us.

During our 2023 discussion with Ioan, he shared candid insights about the evolution of his mindset, the challenges and opportunities of building startups in Romania, and the broader trends in global entrepreneurship.

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"Startups are something that defies logic in a certain way because you’re betting that this small thing that’s built by just a couple of people at the beginning is going to take on huge companies and win the market against those. It doesn’t make any sense, right? It’s just completely nonsensical."

Our interview with him touched on funding dynamics, the significance of building strong teams, and the vision for Romania becoming a global innovation hub akin to Israel.

Ioan Iacob also emphasized the importance of value creation over hype, the role of exceptional people, and the excitement of solving complex problems with a passionate team.

Key insights from Ioan Iacob

• The journey from Qualitance to FlowX.AI was organic, driven by a desire to solve inefficiencies in enterprise software development.
• Learning from past mistakes made building the second startup somewhat easier, but higher stakes and investor responsibilities increased pressure.
• UiPath’s success revolutionized perceptions of Romanian tech startups, boosting investor confidence and ecosystem growth.
• The entrepreneurial mindset values bold visions and the exponential power of exceptional teams over sheer numbers.
• Central European startups excel in product development but need to significantly improve sales and go-to-market capabilities.
• Funding rounds for FlowX were oversubscribed, underscoring the importance of investors who share vision and values.
• Romania is rapidly evolving into a global innovation hub, with potential comparable to Israel’s startup ecosystem.

Lessons learnt as an entrepreneur in the early 2000 and nowadays

• Organic growth and product-market fit: The decision to spin-off FlowX from Qualitance was not based on chasing market trends but on years of organically evolving solutions to real enterprise problems. This highlights the value of deep customer understanding and iterative product development, which often leads to more sustainable startups than those built solely on hype or external market pressures. The idea that FlowX emerged naturally from Qualitance’s work on digital transformation projects with global enterprises like IKEA and Johnson & Johnson underscores the power of solving tangible business pain points.
• Balancing easier execution with greater responsibility: Having learned from past mistakes, Ioan found out that launching FlowX was easier in terms of operational execution but harder due to increased responsibilities, especially managing investor money. This duality illustrates a common startup founder experience: increased experience reduces trial-and-error errors but raises the stakes as external capital and expectations come into play, which can increase pressure and require more strategic thinking. This also reflects a maturation of the entrepreneur’s role — from builder to steward of resources and people.
• Global market orientation, a prerequisite for scaling: Ioan Iacob stresses that addressing a global problem with a large total addressable market (TAM) is crucial for rapid growth and funding success. This is particularly relevant for startups originating in smaller ecosystems like Romania, where domestic markets are limited. The emphasis on having a scalable product that can serve multinational clients is a critical insight for startups looking to attract international investors and compete globally.

• Exceptional teams are a startup’s core asset: Ioan believes that a small number of exceptional individuals can outperform larger teams of good people. This “compound effect” of intelligence and skill is central to the startup’s advantage and success. It places hiring and team-building at the heart of startup strategy, reminding founders that the quality of people they surround themselves with can significantly influence outcomes.
• Funding as a partnership, not just flow of capital: The founder of FlowX.AI highlights that raising money is not only about the capital but also about the quality of investors and the relationship built with them. FlowX’s oversubscribed rounds and alignment with investors who share values and vision enabled a supportive growth environment. This insight
• emphasizes that founders should prioritize investor fit and long-term partnership over quick funding, ensuring that investors can add strategic value beyond money.
• Romania’s startup ecosystem: from gray communism to full color economy: The historical perspective provided by Ioan Iacob frames Romania’s tech journey as a remarkable transformation from a post-communist economy to a vibrant, innovative ecosystem attracting global attention. The success of UiPath as a trailblazer has helped change perceptions, bringing in capital, talent, and global recognition. The comparison to Israel highlights the potential for Romania to become a powerhouse in intellectual property and innovation, provided it continues nurturing talent and addressing ecosystem gaps such as sales. This narrative inspires optimism about the future and underscores the importance of ecosystem champions in driving change.
• Learnings from Silicon Valley - bold vision and openness: Exposure to Silicon Valley’s culture instilled in Ioan the importance of having a bold vision and openly expressing ambitious goals. This contrasted with the typically humble Eastern European mindset and was transformational in shaping the startup’s approach. The willingness to dream big and communicate those dreams clearly is a key ingredient in attracting investors, customers, and talent. It also highlights cultural differences that startups must navigate when scaling globally.

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.

Watch the full documentary in the video below: