HUNGARIAN STARTUP ECOSYSTEM, 2014

ECONOMIC SNAPSHOT OF THE HUNGARIAN STARTUP ECOSYSTEM IN 2014

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?

QUANTITATIVE STUDY

Statistical analysis of data from 125 startups, 54 investors, and 93 deals.

RETROSPECTIVE ANALYSIS

Systematic observation of economic indicators over the course of the years.

QUALITATIVE STUDY

Interviews with founders, investors and support organisations.

INVESTMENTS

TOTAL CAPITAL RAISED

$69.3m (€54.9m) in 27 deals

NUMBER OF DEALS

5

10

15

20

25

30

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

2014 2013 2012

DEAL CURRENCIES

EUR 1.2m in 5 deals

HUF 1.8bln in 20 deals

USD 60.6m in 4 deals

TOTAL CAPITAL BY STAGE

Angel: $595k (€477k) in 2 deals

Seed: $3m (€2.4m) in 19 deals

Venture: $66.1m (€52.3m) in 8 deals

AVERAGE CAPITAL BY STAGE

Angel: $297.5k (€238.5k)

Seed: $156k (€125.9k)

Venture: $8.3m (€6.5m)

INVESTMENT RANGES

5%

10%

15%

20%

25%

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

TYPES OF INVESTMENTS

Percentage

Angel % Seed % Venture %

Value

Angel $ Seed $ Venture $

ORIGIN OF INVESTMENTS

Percentage Value

Domestic $ Foreign $Domestic % Foreign %

CAPITAL INVESTED

Spectrum Equity, Accel Partners

Valor Capital

Euroventures

Széchenyi Tőkebefektetési Alap, Private Investors

Traction Tribe

Primus Capital

OTP-DayOne

Finnish Business Angels Network, Evli Bank

Energen Group

OTP-Day One

Fiedler Capital

European Pioneers

iCatapult

Axel Springer Plug and Play

Kitchen Budapest

$10m $20m $30m $40m $50m $60m

CAPITAL INVESTED

Valor Capital

Euroventures

Széchenyi Tőkebefektetési Alap, Private Investors

Traction Tribe

Primus Capital

OTP-DayOne

Finnish Business Angels Network, Evli Bank

Energen Group

OTP-Day One

Fiedler Capital

European Pioneers

iCatapult

Axel Springer Plug and Play

Kitchen Budapest

$1m $1m $2m $3m $3m $4m

CAPITAL RAISED

PreziMobilengine

TresoritKarma Platform

Maven 7Piqniq

EnbritelyNow Technologies

CryptTalkSortPadStatzUp

Hashtag Charity (#charity)SmartDrive

CommsigniaRemotaid

RoboPhoneMadBarz

VegasLockDownPlays

SongArcIntNineOpp.io

TappointmentFunspotter

TepLiteUp

SnapClipShokaMe

Pubify$10m $20m $30m $40m $50m $60m

CAPITAL RAISED

MobilengineTresorit

Karma PlatformMaven 7

PiqniqEnbritely

Now TechnologiesCryptTalkSortPadStatzUp

Hashtag Charity (#charity)SmartDrive

CommsigniaRemotaid

RoboPhoneMadBarz

VegasLockDownPlays

SongArcIntNineOpp.io

TappointmentFunspotter

TepLiteUp

SnapClipShokaMe

Pubify$1m $2m $3m $4m

TRENDS

NUMBER OF DEALS

5

10

15

20

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Angel Seed Venture

VALUE OF VENTURE DEALS

$20m

$40m

$60m

$80m

$100m

$120m

2010 2011 2012 2013 2014

VALUE OF SEED DEALS

$500k

$1,000k

$1,500k

$2,000k

$2,500k

$3,000k

2010 2011 2012 2013 2014

AVERAGE INVESTMENT SIZE

$3m

$6m

$9m

$12m

2010 2011 2012 2013 2014

Venture

$150k

$300k

$450k

$600k

2010 2011 2012 2013 2014

Seed

INVESTMENT RANGES

10%

20%

30%

40%

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

2012 2013 2014

2

1

3

Average value of seed deals shows six-fold increase;

Seed financing overtakes venture financing in rounds;

Venture financing rebounds after low period of 2 years.

HUNGARIAN STARTUP ECOSYSTEM, 2014ECONOMIC SNAPSHOT OF THE HUNGARIAN STARTUP ECOSYSTEM IN 2014

DATA AVAILABLE ONLINE, VISIT US AT: STARTUPS.HU

Startups.hu is currently tracking 125 Hungarian tech startups, and 93 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.