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Govt Invests EUR 15.6m in Venture Capital Fund Targeting Startups

MTI-Hungary Today 2021.10.15.

The government is investing 5.6 billion forints (EUR 15.6m) in a new fund of venture capital fund manager Euroventures through state-owned venture capital fund manager Széchenyi Funds, Finance Minister Mihály Varga said.

Széchenyi Funds will raise capital in Euroventures’ latest, fifth fund, making it its largest investor. The new fund targets startups past their initial launch and in their growth phase, the minister said.

Money will be provided primarily to technology companies specializing in information technology, biotechnology, or environmental technologies. The export capability will be an important factor, as they are looking for companies with products or services that can be competitive on the international market, Varga said.

Finance Minister Puts 2022 GDP Growth at 5.5-6 pc
Finance Minister Puts 2022 GDP Growth at 5.5-6 pc

Hungary's economic output has returned to 2019 levels, which is an "excellent result", considering that the tourism industry, which accounts for 8-10 percent of GDP, has still not fully recovered, Varga said.Continue reading

While restarting the economy the government wants to strengthen as many companies as possible that represent high value-added and increase competitiveness, he added.

The minister noted that in July the government already initiated a 10 billion forint support scheme for local startups in their launch phase through Széchenyi Funds.

Varga said there are over 1,000 startups in Hungary with some 26,000 people on the payroll.

Featured image via Zoltán Balogh/MTI