The document analyzes economic data from the Hungarian startup ecosystem in 2014, finding that: - A total of $69.3 million was raised in 27 deals, with seed financing surpassing venture financing. - The average value of seed deals increased six-fold, while venture financing rebounded after a low period. - Most funding came from domestic investors, though foreign investment also contributed significantly.

1. HUNGARIAN STARTUP ECOSYSTEM, 2014
ECONOMIC SNAPSHOT OF THE HUNGARIAN STARTUP ECOSYSTEM IN 2014
STARTUPS.HU

2. WHY?

3. 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.

4. 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.

5. HOW?

6. 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.

7. INVESTMENTS

8. TOTAL CAPITAL RAISED
$69.3m (€54.9m) in 27 deals

9. NUMBER OF DEALS
5
10
15
20
25
30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2013 2012

10. DEAL CURRENCIES
EUR 1.2m in 5 deals
HUF 1.8bln in 20 deals
USD 60.6m in 4 deals

11. 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

12. AVERAGE CAPITAL BY STAGE
Angel: $297.5k (€238.5k)
Seed: $156k (€125.9k)
Venture: $8.3m (€6.5m)

13. INVESTMENT RANGES
5%
10%
15%
20%
25%
$0-$50k $50k-$100k $100k-$250k $250k-$500k $500k-$1m $1m-$2m $2m+

14. TYPES OF INVESTMENTS
Percentage
Angel % Seed % Venture %
Value
Angel $ Seed $ Venture $

15. ORIGIN OF INVESTMENTS
Percentage Value
Domestic $ Foreign $Domestic % Foreign %

16. 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

17. 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

18. CAPITAL RAISED
Prezi
Mobilengine
Tresorit
Karma Platform
Maven 7
Piqniq
Enbritely
Now Technologies
CryptTalk
SortPad
StatzUp
Hashtag Charity (#charity)
SmartDrive
Commsignia
Remotaid
RoboPhone
MadBarz
VegasLockDown
Plays
SongArc
IntNine
Opp.io
Tappointment
Funspotter
Tep
LiteUp
SnapClip
ShokaMe
Pubify
$10m $20m $30m $40m $50m $60m

19. CAPITAL RAISED
Mobilengine
Tresorit
Karma Platform
Maven 7
Piqniq
Enbritely
Now Technologies
CryptTalk
SortPad
StatzUp
Hashtag Charity (#charity)
SmartDrive
Commsignia
Remotaid
RoboPhone
MadBarz
VegasLockDown
Plays
SongArc
IntNine
Opp.io
Tappointment
Funspotter
Tep
LiteUp
SnapClip
ShokaMe
Pubify
$1m $2m $3m $4m

20. TRENDS

21. NUMBER OF DEALS
5
10
15
20
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Angel Seed Venture

22. VALUE OF VENTURE DEALS
$20m
$40m
$60m
$80m
$100m
$120m
2010 2011 2012 2013 2014

23. VALUE OF SEED DEALS
$500k
$1,000k
$1,500k
$2,000k
$2,500k
$3,000k
2010 2011 2012 2013 2014

24. AVERAGE INVESTMENT SIZE
$3m
$6m
$9m
$12m
2010 2011 2012 2013 2014
Venture
$150k
$300k
$450k
$600k
2010 2011 2012 2013 2014
Seed

25. INVESTMENT RANGES
10%
20%
30%
40%
$0-$50k $50k-$100k $100k-$250k $250k-$500k $500k-$1m $1m-$2m $2m+
2012 2013 2014

26. 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.

27. HUNGARIAN STARTUP ECOSYSTEM, 2014
ECONOMIC 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.