Startups in Hungary - statistics & facts
Hungary's startup landscape
A considerable number of startups with a high growth potential are listed under the in the Information and Communications Technology (ICT) vertical, for instance AImotive, Bitrise, and Barion Payment. At the same time, several high-performing startups operate in the Finance and Insurance and the Biotech and Healthcare sectors.Artificial Intelligence (AI) plays a crucial role in multiple ongoing projects, as in the case of AImotive – one of the largest independent teams focused on developing camera-first, automated driving technologies. In another field, the simulation-focused drug discovery company Turbine also utilizes AI in its product, designed to revolutionize cancer treatment by using simulated cell technologies.
Fierce competition for funds
In 2022, the majority of startup enterprises were financed by the founder’s own capital, with only a smaller share of businesses attracting venture capital investments. Even though the startup funding value has been steadily growing over the past period, the number of deals has been decreasing year over year, creating a highly competitive environment for startups. The fraud prevention company SEON received the largest investment ever recorded on the Hungarian startup market, raising 94 million U.S. dollars' worth of funds in the second quarter of 2022.Developing the startup ecosystem in the country belongs to the government’s long-term goals, which is reflected in its increasing involvement in startup financing. Hiventures, a government-supported venture capital company, has been one of the major investors in the Hungarian startup market, with over 750 total investments made as of 2022. Moreover, most startups benefitting from local venture capital investments raise money from state funds.