The Hungarian Venture Capital and Private Equity Association (HVCA) has published an industry position paper and a package of professional recommendations. The professional advocacy body outlines strategic measures and structural proposals to support the next phase of development of Hungary’s venture capital and private equity ecosystem, as well as to enhance the competitiveness of Hungarian enterprises.
The position paper, available on the HVCA’s website, emphasizes that Hungary has built a significant investment ecosystem over the past two decades, primarily relying on state and European Union funding; however, the sector has now reached a turning point. “The long-term competitiveness and sustainability of the Hungarian market will increasingly depend on our ability to attract more private, institutional, and international investment capital,” said Balázs Haszonics, Chairman of HVCA and CEO of LEAD Ventures.
The Association highlights that in recent years, venture capital and private equity investors have invested several billion euros into more than 400 Hungarian companies, making a substantial contribution to innovation, business development, and the modernization of the economy. At the same time, HVCA stresses that the future growth of the ecosystem requires a gradual transition from a state-driven financing model to a more market-based and internationally integrated investment environment.
“The next phase in the development of the Hungarian venture capital and private equity market will depend on greater participation by private and institutional investors, improved predictability of the regulatory environment, and Hungary’s ability to retain innovative companies domestically while helping them scale internationally,” added Balázs Haszonics.
The policy recommendations set out several strategic priorities aimed at strengthening Hungary’s regional competitiveness and making it a more attractive destination for innovation-driven investments. The key proposals include:
The key proposals include:
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establishing a more predictable and internationally competitive regulatory environment for investors and fund managers;
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strengthening incentives for private and institutional capital investment; expanding growth-stage and scale-up financing opportunities for Hungarian companies;
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simplifying administrative and legal processes related to fund operations and investments;
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fostering closer cooperation among universities, corporations, investors, and public-sector stakeholders;
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and enhancing Hungary’s attractiveness as a regional hub for investment and innovation.
“International experience clearly shows that a strong venture capital and private equity sector directly contributes to innovation, productivity growth, export competitiveness, and job creation,” said Balázs Haszonics. “We believe that closer collaboration between policymakers and market participants can significantly expand financing opportunities for Hungarian businesses at every stage of their development.”
While Hungary has made substantial progress in early-stage startup financing, significant gaps remain in funding later growth stages, supporting international market entry, and providing viable exit opportunities. “The intensifying regional competition for investment capital requires Hungary to align even more closely with international best practices in regulation, transparency, and investment policy,” concluded the Association’s Chairman.
The publications also emphasize that the long-term development of the ecosystem cannot rely solely on state funding instruments. Sustainable growth requires deeper integration of private market participants and a stable, predictable investment environment capable of encouraging long-term capital inflows.
The publications are available on the HVCA’s website: https://www.hvca.hu/en/statement2026
The recommendations were developed with the involvement of a broad range of industry stakeholders represented by the Association and reflect the extensive practical experience accumulated within Hungary’s venture capital and private equity sector.
