Startups in Hungary - statistics & facts
World-famous products and companies trace their roots back to Hungarian startups, such as Prezi, the country’s first unicorn, Ustream, and LogMeIn. Hungary’s capital, Budapest, has grown into one of Europe’s main startup hubs over the past few years – owing to its rapidly developing facilitating ecosystem, and skilled local IT specialists.
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.
Numerous successful companies have emerged from Hungarian startups, and the country's capital stands out as a key European hub, accommodating various enterprises with significant growth prospects. However, funding has undergone a significant downturn in recent years, making the landscape more challenging.
Hungary's startup landscape
A considerable number of startups with a high growth potential are listed under the Information and Communications Technology (ICT) vertical, such Bitrise, the country’s most funded startup as of 2024. Moreover, several high-performing startups operate in the fintech, media 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 AI also utilizes artificial intelligence in its product, designed to revolutionize cancer treatment by using simulated cell technologies.Fierce competition for funds
In 2023, the majority of startup enterprises were financed by the founder’s own capital, with only a smaller share of businesses attracting venture capital investments. The number of startup funding deals, as well as the value invested in companies decreased over the past years, creating a highly competitive environment for startups. In 2024, Colossyan benefitted from the largest founding round, raising over 20 million euros.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.
Numerous successful companies have emerged from Hungarian startups, and the country's capital stands out as a key European hub, accommodating various enterprises with significant growth prospects. However, funding has undergone a significant downturn in recent years, making the landscape more challenging.
