OXO Technologies Holding to go Public in 2021

Incubators

OXO Group has announced the creation of CEE tech investment firm OXO Technologies Holding, bringing all of its investments under one roof, with the plan to launch the holding firm on the Budapest Stock Exchange in 2021.

Over more than five years of operations, OXO Group says it has built an investment portfolio of more than 30 startups. The portfolio encompasses early-stage startups and dynamically growing businesses and, in some cases, the group has begun its exit process.  

Since the beginning of operations, the group says it has invested approximately HUF 1 billion. At the end of 2019, the value of its portfolio reached HUF 2.8 bln.

“Whether talking about early or mature phase investments, our portfolio shows an excellent yield potential,” said Dávid Pongrácz, investment director at OXO Ventures.  

“Up to 2020, we have found more than 15 angel and institutional investors, investigated 900 startups, and made 35 investments.”

He added that the group’s strong deal flow is a guarantee of quality in case of future investments, especially since its scope of interest is not limited to Hungary, but includes the entire CEE region. The buildup of regional investments will continue this year, Pongrácz noted.

Szabolcs Botond, angel investor at OXO Group, added, “OXO Group’s extended network of angel investors in itself adds great value to the management of the portfolio. This is complemented by a team of professionals with unparalleled experience in company building, international expansion, and business development, providing us with an outstanding competitive advantage under current market conditions.”

Dynamic Increases

According to the expert, thanks to the inexhaustible source of resources in recent years, asset prices have been dynamically increasing in almost every market. However, the yield potential of venture and private equity stays higher than even other alternative asset classes, although there is increasing uncertainty about valuations and asset prices, he warned.

In his opinion, an investment that only sounds good or has a high PR value has little value in the eyes of serious investors. On the other hand, the valuation of the entire portfolio says much more, especially in terms of forecasting yield potential.

OXO group’s owner and founder is Péter Oszkó, a former Minister of Finance (April 16, 2009-May 29, 2010) in the socialist-backed technocrat government of Gordon Bajnai and prior to that was country managing partner of Deloitte.

“With the transformation we are planning to make the entire portfolio publicly accessible in the first half of 2021, meaning that the holding’s shares will be listed on the Budapest Stock Exchange,” Oszkó explained at a press conference called to announce the move.

He added, “The created investment construction will naturalize an Anglo-Saxon market practice, which, in the future, will allow us to address a much wider range of investors than before.”

Oszkó argued that private and institutional investors who, due to longer investment periods of up to 10 years and the continued high risks associated with low liquidity, have so far failed to enjoy the growth and yield potential of the sector, would now be able to enter the technology innovation investment market.

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