Over the last decade,HIVENTURES with 50 billion HUF worth of European Union and HDB funds, became one of the biggest investor companies in the CEE region.
Professionally supervised and supported by the National Research, Development and Innovation Office and the Hungarian Development Bank Plc. (HDB), HIVENTURES aims to invest in and support pre-seed, seed and growth stage companies through our venture capital programs, thus helping pre-established or young, R+D+I focused companies to succeed. HIVENTURES provides the following investment structures:
• Pre-seed investments: supports micro-enterprises with research, development and innovation activities, where the product or service idea already exists, but the final concept development and business content is yet to discover and evolve. Investment time horizon: one year (up to 9 million HUF [approx. 29 000 EUR] capital to each business + 9% share);
• Seed investments: supports micro- small- and middle-sized enterprises that already realized the significant part of the product development, market validation, finished with market testing, however in order to reach the next level they need extra capital, which requires a business plan. Investment time horizon: two years (20-150 million HUF [approx. 65 000 – 485 000 EUR] capital to each company);
• Growthinvestments: supports micro- small- and middle-sized enterprises that already finished the product development, market validation, however in order to boost their sales or enter into international markets they need extra capital. Investment time horizon: between three to six years (up to 500 million HUF [approx.1,6 mio EUR].

Resources needed

Members of the team bring together important knowledge and expertise:
• experienced fund managers;
• track record in venture capital with successful exits;
• experience in corporate finance, banking, investments, project management, business strategy, international diplomacy.

Evidence of success

200+ companies invested in (HIVENTURES portfolio)

Difficulties encountered

HIVENTURES aims to invest in approx. 1200-1300 innovative enterprises in Hungary and in the CEE region. The main challenge is to identify potential investees and to define the adequate ticket size.

Potential for learning or transfer

Attention should be paid on the investment management team composition as well as the due diligence.
Main institution
IFKA Nonprofit Ltd.
Location
Közép-Magyarország, Hungary (Magyarország)
Start Date
January 1999
End Date
Ongoing

Contact

Maria Baracsi Please login to contact the author.