Eight new risk capital funds began their operation in Hungary at the end of August, with all of them handling the distribution of the European Unionʼs so called JEREMIE funds, providing more than HUF 80 billion of resources for innovation projects, according to a press release sent to the Budapest Business Journal.
Hungarian micro enterprises and SMEs will be eligible to apply for support, which will be distributed by the eight fund management companies accredited by the Hungarian Investment Bank. According to the press release, the aim of the EU support is to aid the realization of innovative projects conceived in less developed regions outside of Central Hungary.
Out of the eight new companies, X-Ventures, Solus Capital, Finatech, and Bonitás have already presented the new program at this Octoberʼs Progress Bar, organized by Drukka Startup Studio.
The creation of Progress Bar was supported by the angel investor team of Baconsult as well as Arete. Nokia supported the event by providing its venue.
Within the framework of smart specialization venture capital program GINOP 8.1.3/B-17, seven new venture capital funds are created, with their grants made of HUF 9.34 bln of EU support along with a minimum of 23% of private capital. Each fund manager will be able to distribute around HUF 10 bln each, totaling approximately HUF 75 bln.
The supported projects must fit the guidelines of the "National Intelligent Specialization Strategy". As a result, the winners of the public tender will invest in seven different fields.
FINATECH Capital Kockázati Tőkealap-kezelő Zrt. will be responsible for projects in the "Healthy society and wellbeing" field.
X-Ventures Alpha Kockázati Tőkealap-kezelő Zrt. is tasked with aiding startups in the "ICT technologies and services" field (excluding Smart City). For Smart City programs (excluding ICT), CV Alapkezelő Zrt. will be responsible.
Bonitás Befektetési Alapkezelő Zrt. will handle "Agrarian innovations".
Primus Capital Kockázati Tőkealap-kezelő Zrt. (Solus Capital) will manage funds for "Intelligent technologies and services", with DBH Investment Kockázati Tőkealap-kezelő Zrt. responsible for "Developed vehicle and other machine technologies", and X-Ventures Béta Kockázati Tőkealap-kezelő Zrt. for "Sustainable environment, clean, and renewable energies".
The seven companies are allowed to allocated capital between HUF 200 million and HUF 1.5 bln per project.
In addition, the VEKOP 2.1.2-17 "Intelligent Specialization Venture Capital program" also creates a new venture capital fund, with HUF 5.13 bln of EU support and a minimum of 40% private funds. The tender to run this was won by Gran Private Equity, which is allowed to finance projects in Central Hungary
Technologically innovative projects with high growth potential will be preferred during the distribution of funds, with the new JEREMIE distributors expected to invest in a total of 150 innovative companies over the course of the next five years.