Government to invest more in domestic startup companies

The Hungarian government will invest HUF 5.6 billion in the latest fund of Euroventures, one of the most successful domestic venture capital investors, through Széchenyi Funds.

Minister of Finance Mihály Varga said at a press conference on Friday that the government seeks to strengthen as many companies as possible that represent high added value and increase the competitiveness of the economy.

The current program targets mature startups that need capital to grow even more. One of the most successful domestic specialists for such investments is Euroventures, which has been operating for more than 30 years. In the current transaction, Széchenyi Funds will raise capital for Euroventures’ latest and fifth fund, making it its largest investor, he explained. In doing so, it precedes organizations such as the European Bank for Reconstruction and Development (EBRD) and the European Investment Fund (EIF), which is owned by the European Investment Bank (EIB). The firm has the knowledge and experience to accelerate the development of the most viable Hungarian technology companies, he explained.

Funding will be provided primarily to technology companies involved in information technology, biotechnology, or environmental technologies. Companies’ ability to export will also be an important consideration, the minister said, as they are looking for startups with products or services that can compete in the international market as well. 

Dénes Jobbágy, President and CEO of Széchenyi Funds, said that their main goal has been to promote the development of the domestic capital market. In the last 10 years, about HUF 56 billion has been invested in 130 target companies.

Péter Tánczos, Managing Partner of Euroventures, emphasized that the new partnership would open up further opportunities to strengthen regional activity. The group invests in mature yet fast-growing tech companies that dare to think internationally and create significant value, he said.

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