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Venture, private capital investments in Hungary rise slightly in 2008

  Some €515 million of venture and private capital was invested in Hungarian companies in 2008, €24 million more than in 2007, but slightly less than the €535 million peak reached in 2006, László Oláh, chairman of the Hungarian Venture and Capital Association (MKME) told MTI.

The average value per investment in Hungary rose to €20.6 million in 2008 from €18.9 million in 2007. The value of venture and private capital investments in Europe fell 27% in 2008, and in Central Europe the decline was more than two-thirds.

The economic crisis has created good conditions for companies to buy up their competitors, and more and more companies are seeking the support of MKME members for such endeavors, Oláh said.

Most Hungarian companies are not competitive in international comparison: they are marginally profitable, inefficient or too diversified, which makes it difficult to attract capital, Oláh said, adding that there are some exceptions such as navigation software company Nav N Go and a certain Budapest-based bakery company. (MTI-Econews)