In Iasi, the millionaires which make millionaires

The businessmen from Iasi Bogdan Pitigoi and Gabriel Mardarasevici will finance with 250.000 euro the development of an outdoor advertising network. The idea was of a young of 20 years from Iasi and will be sustained through the “business angels” system.

One quarter of a million dollar is the sum which two businessmen from Iasi have decided to entrust to a student of 20 years old in order to develop a business. Five years ago, Gabriel Mardarasevici (right photo) and Bogdan Pitigoi (left photo), two businessmen from Iasi have launched the project MP Business Angels through which challenged the ones that had innovative ideas and a modern vision on businesses to obtain profit. At near by half a year from launching the project, the first applicant turned up and became partner of those two millionaires from Iasi in a business of 250.000 euro. The first project which will be financed by Pitigoi and Mardarasevici will have as target the development of a billboard network with led in the big cities of Moldavia. “It’s a business which assumes installing monitors with leds in several locations. In Bucharest there are many, but in Moldavia they weren’t develop enough. In the first stage we’ll buy five monitors, which we’ll install in areas from all Moldavia”, Razvan Antohie (photo centre), the administrator of MPA Net work, company which has created within this partnership, stated. He will own 25% of the company’s stocks, and the rest will be divided equally between Gabriel Mardarasevici and Bogdan Pitigoi. “It will be an outdoor advertising company. Initially, we’ll act on regional plan, and then we’ll extend it at national level. This proposal we considered as being interesting and we’ve decided to support. Together we’ve created an emulation and we’ve thought about the direction which the business should follow, because the initial plan was a little different. Our intention was also to direct towards unconventional advertising”, Gabriel Mardarasevici stated.

An idea with origins in the Netherland

With 250.000 euro will be purchased five huge monitors with led, the young administrator following to deal of all the details. For the moment he makes evaluations in order to establish the best locations for installing billboards, makes an analysis of the market and discusses with the suppliers of billboards. “The idea came up after I was in the Netherland with a scholarship, during the high school. There, these types of monitors are everywhere. In our country I’ve seen them only in the Capital City”, Razvan Antohie says. His monetary contribution at the business will be of 10.000 euro, money which he received from his parents. In his family neither his mother nor father deal of businesses, his mother working in justice domain and the father being constructor. “My business plan was of five pages and assumed installing only two billboards in Iasi. Further has developed. I think that in mostly two years and a half the investment will be recovered”, the young contractor said. The profit fallows to be reinvested, and the network to be extended in all that means the outdoor environment from Romania. “The domain of advertising is in full expansion and building of this type of network in our area means an opportunity. I’m glad to support a young man from Iasi in developing this business that will bring money also from other areas of the country towards Moldavia” Bogdan Pitigoi states. “When I’ve started the evaluation of the projects we were counting on an algorithm of strict calculation related to the business plans which we had in front of us. We’ve noticed that there is one more element of evaluation, very important: the empathy against contractor. At this first project, the attitude of the contractor had an important influence on the score”, Gabriel Mardarasevici says.

How did the “angels” choose

They say that three aspects were evaluated. “Firstly we took into account the risks. Secondly, it mattered how anchored was in reality. But most important was the empathy, because we’ll be partners with this young man. We’ve discussed with also six candidates, but we’ve considered that he was the closest of what we’ve wanted”, Mardarasevici explains.

Services, the most searched domain

The appeal launched by those two businessmen in winter gathered in a few months 20 business plans. Of these, six entered in a final stage of analysis. “The most of the projects aimed the services, especially the ones from the virtual space. Here there is an area not explored yet. Also, the last project with which we are in advanced stage of discussion, we only have to polish the idea, is on the domain of electronic trade”, Gabriel Mardarasevici stated. “The angels” from Iasi have also received a proposal to develop a business in the domain of production, but which lost the competition because of the cost too high. “The investor estimated the needed financing to 120.000 de euro, but after we’ve analyzed in detail the business plan we’ve realized that the investment will exceed 400.000 euro”, Mardarasevici says. Those two entrepreneurs were invited to Bucharest at a similar competition, but only for projects in the virtual space, among the investors being counted also Radu Georgescu or Marius Ghenea.

What is a “business angel” ?

A business angel is a natural person which invests a part of its patrimony in an innovative company. In addition to the money, a business angel will place at the disposal of the contractor his competences, experience, the relations which he has and a part of his time. Usually, a “business angel” doesn’t effectively imply in administrating the business, but he only sketches the strategic lines which his initiator must fallow. Not a few times, the decision of these contractors of becoming investors of a business that is in first stage is more related of intuitions that of pre-established severe criteria. By his experience, a real “business angel” has an especially flair in discerning the potential of a new business idea.

“The profile of a business angel”

In USA, where this type of business is extremely popular, it was even drawn up a profile of “angels”

• average age: 47 years old;

• an annually revenue of almost 90 000 USD (considered a big revenue);

• a wealth which usually doesn’t exceed one million dollar (about 750.000 dollar)

• graduated – had their first business;

• they invest about 37 000 USD in each new business;

• 9 out of 10 investments are directed to the small new businesses with less then 20 employees;

• the most often reason for rejecting a business is the small potential of increase, the high price of stocks, the lack of managerial capabilities and the lack of information about the entrepreneur

Who is Bogdan Pitigoi

Bogdan Pitigoi is the owner of the Casa Auto Tester company. His wealth is estimated to 18 million dollar. His main activity is in the auto domain, the company which he owns having in its portfolio 12 brands of vehicles which he commercialize through the network from Iasi and Moldavia. Two years ago he sold half of his stocks to the car company of the magnate Ion Tiriac, with who he was already partner. The transaction rose to a few millions euro. Pitigoi says that he plans to build an auto complex for each brand he commercializes. Only a few weeks ago he launched the new complex for Land Rover. The group of companies owned by him recorded in 2006 a turnover of 20 million dollar and obtained a profit of 2,3 million dollar. The businessman is impassioned of vehicles, not just in commercial meaning, but he is also a race pilot.

Bogdan Pitigoi invested also in the domain of the soft industry, obtaining important profits from the businesses in loan system. However, to these companies, he was minority shareholder.

 

Who is Gabriel Mardarasevici

Gabriel Mardarasevici is the founder of the Radix Company, which activated in the IT area. Two years ago he sold the stocks to the Ness Technologies company, company within now occupies the position of director of development for Romania and Eastern Europe. A part of the money obtained as a result of the trading he invested in the tourism domain. At Vatra Dornei, he finalized the construction of a chalet named «La Mos Vencu». The complex is used especially for teambuilding or meetings for the people from IT. According him, the value of the investment rose to over half a million euro. Also, the investments of the businessman directed towards the real estate market. He purchased an office headquarter with a surface of 1.600 square meters in the centre of the town which he had rented. He also bought other hectares of terrain also in Iasi. Per total, the investment in the real estate area rose to about two million euro. Besides businesses, the businessman from Iasi offered himself a present of 200.000 euro. More precisely, he bought last year a Bentley Continental Flyng Spur car, one of the most expensive cars which circulate in Iasi.