HUNGARIAN STARTUP ECOSYSTEM, 2013

ECONOMIC SNAPSHOT OF THE HUNGARIAN STARTUP ECOSYSTEM IN 2013

STARTUPS.HU

WHY?

We are living in a golden age of digital entrepreneurship, when tools and capital needed to transform concepts into reality are accessible to more people than ever. Never before has it been cheaper and easier to start a company and attract potential customers from all over the world.

High growth technology startups look to be the primary growth engine of the new information economy. With that in mind, it is utterly important to analyse the economic profile and performance of startups, all with the goal of helping entrepreneurs, investors, and policy makers understand how they compare to the global startup ecosystem.

HOW?

RETROSPECTIVE ANALYSIS

How did the factors of the Hungarian ecosystem develop over the years.

QUALITATIVE STUDY

Interviews with founders, investors and support organisations.

QUANTITATIVE STUDY

Statistical analysis of data from 92 startups, 43 investors, and 56 deals.

STARTUPS

YEAR OF FOUNDING

5

10

15

20

25

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

TECHNOLOGY

Hungary

Silicon Valley*

Web Mobile Web+Mobile Software

* Source: Startup Ecosystem Report 2012, Startup Genome Project, 2012

STAGES

Hungary

Silicon Valley*

Discovery Validation Efficiency Scale

* Source: Startup Ecosystem Report 2012, Startup Genome Project, 2012

OPERATION

Hungary

Silicon Valley*

Bootstrapped Funded

* Source: Startup Ecosystem Report 2012, Startup Genome Project, 2012

ROUNDS OF FUNDING

Hungary

0 1 2 3

JOB CREATION

Hungary

Silicon Valley*

Discovery Validation Efficiency Scale

* Source: Startup Ecosystem Report 2012, Startup Genome Project, 2012

NUMBER OF EMPLOYEES

1

2

3

4

5

5-9 10-14 15-19 20-29 30-49 50-99 100+

INVESTMENTS

TOTAL CAPITAL RAISED

$3.12m (€2.3m) in 12 deals

NUMBER OF DEALS

5

10

15

20

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 2012

DEAL CURRENCIES

USD 240k in 2 deals,

EUR 120k in 3 deals,

HUF 608m in 7 deals.

TOTAL CAPITAL BY STAGE

Angel: $77k (€60k) in 1 deal

Seed: $456k (€339.5k) in 7 deals

Venture: $2.6m (€1.9m) in 4 deals

AVERAGE CAPITAL BY STAGE

Angel: $77k (€60k) of 1 deal

Seed: $65.1k (€48.5k) of 7 deals

Venture: $646.3k (€482.5k) of 4 deals

TYPES OF INVESTMENTS

Percentage

Angel % Seed % Venture %

Value

Angel $ Seed $ Venture $

ORIGIN OF INVESTMENTS

Percentage Value

Domestic $ Foreign $Domestic % Foreign %

INVESTMENT RANGES

0%

10%

20%

30%

40%

$0-$50k $50k-$100k $100k-$250k $250k-$500k $500k-$1m $1m-$2m $2m+

2012 2013

CAPITAL INVESTED

Finext Startup, Day One Capital

DBH Investment

Széchenyi Tőkebefektetési Alap

Day One Capital

iCatapult

Undisclosed Investors

Enterprise Ireland

Tekes, Startup Foundation

Propeller Venture Accelerator

Startup Chile

MNG International Investments

$0.2m $0.4m $0.6m $0.8m $1.0m

CAPITAL RAISED

OptoForce

Agorix

Virtual Call Center

Sopreso

EDMdesigner

Sighter

iLandGuide

Mixgar

Antavo

Synetiq

Quargo

Brickflow

Internfish

Bandalizer

BookBox

$0.2m $0.4m $0.6m $0.8m $1.0m

TRENDS

NUMBER OF DEALS

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Angel Seed Venture

VALUE OF VENTURE DEALS

$20m

$40m

$60m

$80m

$100m

$120m

2010 2011 2012 2013

VALUE OF SEED DEALS

$100k

$200k

$300k

$400k

$500k

$600k

2010 2011 2012 2013

AVERAGE INVESTMENT SIZE

$3m

$6m

$8m

$11m

2010 2011 2012 2013

Venture

$150k

$300k

$450k

$600k

2010 2011 2012 2013

Seed

HUNGARIAN STARTUP ECOSYSTEM, 2013

ECONOMIC SNAPSHOT OF THE HUNGARIAN STARTUP ECOSYSTEM IN 2013DATA AVAILABLE ONLINE, VISIT US AT: STARTUPS.HU

Startups.hu is currently tracking 92 Hungarian tech startups, and 56 related investments. We are also tracking the economic profile of these Hungarian startups, which we plan to release as annual reports. Feel free to use our data, and remember to credit the site as your source.

Startups.hu was established in an effort to build an extensive database of Hungarian startups, their economic performance, and the hard working entrepreneurs behind them. We want the site to become the source of an informed overview of the startup ecosystem in Hungary.

Our goal is to make the Hungarian startup ecosystem transparent and predictable, thus more attractive for international venture capital.