We strongly believe that local talent combined with a vibrant startup ecosystem will significantly contribute to innovation in Hungary. The government is co-funding private investments of technological incubators and that of HiVentures, one of the largest VC in Europe.
Startup.co.uk recently ranked Budapest the best European city for startups to launch post-Brexit, citing Hungary’s super-low corporate tax rate, as well as the city’s low cost of living and high quality of life. There are many other reasons to expect the city’s buzzing startup scene to continue to grow, with more than 700 startups and scaleups already located in Budapest, supported by 50+ angel investors, creating a vibrant tech scene. Manufacturing startups, in particular, are attracted to the city due to its great transport links with the EU. The government also offers strong support for startups. It has recently streamlined the company formation process so that new businesses can set up in just 72 hours. The National Research, Development and Innovation (NRDI) Office and Ministry for Innovation and Technology (ITM), recently launched the Startup Factory incubator program with ~$6.6. million in co-funding tech investments. The government is funding VCs and nation-wide educational programs like Startup University. The city’s tight-knit startup community also hosts regular tech events. Security BSides, for instance, is billed as the first grassroots, DIY, open security conference in the world. Another event, Crunch, is a conference for people interested in building the finest data-driven businesses. Successful companies emerging from the ecosystem include Bitrise providing application development technologies, raising a total over €20 million, and SEON Fraud Prevention, which raised a total of €11.6 million in funding. Programming school Codecool has raised a total of €14M over 4 rounds and Shapr3D continues the legacy of Hungarian graphics-based startups.
Ecosystem by the numbers
Magyar Nemzeti Bank launched its Innovation Hub and Regulatory Sandbox framework in 2018 to safely test innovative financial solutions. MKB Bank’s Fintechlab, one of the first local Fintech accelerators, has already incubated 22 startups, many of which relocated to Budapest from other regional hubs for the program. In 2020, electronic payment solutions company Barion raised a $2.2 million Series B round and Insurwiz, an insurtech company raised a $1.3 million Seed round.
Reasons to move your startup to Budapest
Startup-friendly Tax Policies
National Research, Development and Innovation Office
Ministry of Innovation & Technology
Are you interested in diving deeper into this ecosystem? Drop us a message. Our Ambassadors and Partners can plug you in.