Bence Katona, CEO of the venture capital company belonging to Magyar Fejlesztési Bank (MFB), told newspaper Magyar Nemzet that the state-owned company has entered a special market trajectory.
At the start of 2017, we set the goal of strengthening and accelerating the system for and operation of Hungarian startups; today, we support the entire Hungarian entrepreneurial sphere, providing capital financing from the concept phase to large-scale corporate investments. Hiventures Zrt. has now become one of the largest and most active venture capital fund managers in Central and Eastern Europe, he said.
Katona reported that despite COVID-19, Hiventures allocated approximately HUF 14 billion of capital, affecting a very wide layer of the Hungarian economy. He also talked about the KKVPRO business, which was launched in 2019 and targets traditional small and medium-sized enterprises, and InvestPro, launched in 2020 with a focus on the large corporate sector.
Currently, 350 companies are being financed by HUF 38 billion, much of which increased in 2020. In the KKVPRO business, capital financing typically deals with problems arising from generational change and keeping companies in Hungarian ownership. InvestPro’s financing solutions are primarily intended to play an important role in relaunching and reviving the economy.
Hiventures also launched Startup and SME rescue packages in 2020 to help Hungarian companies avoid bankruptcy and protect those companies that were previously functioning well but are facing temporary difficulties from becoming foreign-owned.
So far, more than 20 companies have been provided with rescue capital investments in excess of HUF 3.5 billion.
Due to the epidemic, a special liquidity and capital support program has also been launched, and, if necessary, they are ready to provide funds of up to HUF 50 billion, including state aid, to key companies whose exploitable market opportunities have been exhausted.