The European startup market achieved records in terms of both the number and volume of investments in 2018, with the number of capital investments in Hungary growing at the fastest pace year-on-year proportionally, according to EYʼs Start-Up-Barometer.
During the entirety of 2018, European startups received a total of 4,199 investments, up 15% from 2017. The volume of investments grew by 11%, amounting to more than EUR 21 billion in total, according to the EY study.
In Hungary, 132 startup investment transactions took place, twice as many as the preceding year, a growth unmatched across the continent. The sharp increase means that Hungary is now in eighth place in Europe regarding the number of investments, ahead of Russia and Denmark. From the CEE region, only Hungary managed to crack the top ten.
"In Hungary, the startup ecosystem is increasingly developed and partially thanks to this, the domestic startup community is one of the most active in Europe," says Ferenc Nagy, expert of EY Hungaryʼs transaction advisory branch.
"It cannot be emphasized enough that an innovative mindset and a good idea are not enough by themselves to achieve success," he adds. "A dedicated and authentic team is indispensable, and so is an international business mindset and strategy, playing a key role in the founders finding the optimal investor for their future plans for themselves."
The largest value of startup investments, EUR 7 bln, was registered in the United Kingdom, followed by Germany (EUR 5 bln), and France (EUR 3.5 bln).