The publications (accessible on the HVCA website) emphasise that while Hungary has built a significant investment ecosystem over the past two decades — supported largely by public and EU-backed capital programs — the sector now faces a critical transition point. “The long-term competitiveness and sustainability of the Hungarian market will increasingly depend on attracting more private, institutional, and international investment capital” - said Balázs Haszonics, Chairman of the HVCA Board and CEO of LEAD Ventures.

The association highlights that venture capital and private equity investors have invested more than USD 3 billion into over 400 Hungarian companies in recent years, contributing substantially to innovation, entrepreneurship, and economic modernisation. However, HVCA believes the ecosystem’s future growth requires a shift from a predominantly state-driven financing model toward a more market-based and internationally integrated investment environment.

“The next stage of development for the Hungarian venture capital and private equity market depends on increasing private and institutional investor participation, improving regulatory predictability, and strengthening Hungary’s ability to retain and scale innovative companies domestically,” – added Balázs Haszonics.

The recommendation package outlines several strategic priorities aimed at improving Hungary’s regional competitiveness and positioning the country as a stronger destination for innovation-driven investment.

The key proposals are:

• creating a more predictable and internationally competitive regulatory framework for investors and fund managers; 

• strengthening incentives for private and institutional capital participation;

• improving growth-stage and scale-up financing opportunities for Hungarian companies; 

• simplifying administrative and legal procedures related to fund operations and investments; 

• encouraging stronger cooperation between universities, corporations, investors, and government stakeholders; and

• increasing Hungary’s attractiveness as a regional investment and innovation hub.

“International experience demonstrates a strong venture capital and private equity sector, that  contributes directly to innovation, productivity growth, export competitiveness, and job creation” – added the Board Chairman. “We at HVCA believe that closer cooperation between policymakers and industry stakeholders could significantly expand financing opportunities for Hungarian companies at all stages of development.”

Hungary has made important progress in early-stage startup financing, but significant gaps remain in later-stage funding, international scaling support, and exit opportunities. “Increasing regional competition for investment capital requires Hungary to align more closely with international best practices in regulation, transparency, and investment policy” – concluded Haszonics.

The publications also stress that long-term ecosystem development cannot rely exclusively on public funding instruments. Instead, sustainable growth will require deeper integration of private market participants and the development of a stable, predictable investment climate capable of attracting long-term capital commitments.

HVCA noted that the proposals were developed with the contribution of industry participants and reflect practical market experience accumulated across the Hungarian venture capital and private equity sector.

The full publications are available on the HVCA website.