Gov't invests HUF 5.6 bln in venture capital fund targeting startups

Government

The government is investing HUF 5.6 billion in a new fund of venture capital fund manager Euroventures through state-owned venture capital fund manager Széchenyi Funds, Finance Minister Mihály Varga said on Friday, state news wire MTI reports.

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 engaged in information technology, biotechnology, or environmental technologies. 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.

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

The minister noted that in July the government already initiated a HUF 10 bln support scheme for local startups in their launch phase, through state-owned venture capital fund manager Széchenyi Funds.

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

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