The funding programme has a budget of HUF 1.5 billion (EUR 4.8 million) from the National Research, Development and Innovation Fund. Incubators can apply for a non-refundable support of HUF 300 million to 500 million (approx. EUR 1 million to 1.6 million).
Awarded incubators will use the received funds to announce calls for proposals to facilitate the development, training and market entry of startups, whereas the winning startups will be able to call the funds awarded on a commercial basis directly from the incubators.
Incubators decide at their own discretion on the selection and reasonable funding of startup projects. No more than 20% of the funds awarded to incubators can be spent on their own operation costs, and at least 80% has to be spent on financing startups. Applicants are required to have own equity accounting for at least 20% of the requested amount.
This new call completes the existing competitive project funding system aimed at establishing, strengthening and developing innovative startup businesses. The strengthening communities of incubators enable the identification and development of promising innovative ideas across Hungary, including now also the Central Hungary Region.
The “Innovation Ecosystem” (EDIOP-2.1.5-15) call opened in December 2015 with a budget of HUF 5 billion (EUR 16.2 million) has become available with a similar objectives but only for the areas outside Central Hungary. On the basis of the complex set of criteria, including the business plan and the plan relating to building and developing the local startup ecosystem, eight project proposals out of those 48 submitted have received the endorsing RDI policy opinion of the National Research, Development and Innovation Office in August 2016, enabling applicants to submit their project proposals to the Managing Authority of the call.
The schemes available for innovative businesses in the framework of the competitive funding system for RDI projects and the government-run venture capital fund launched in October 2016 provide further funds to build up internationally competitive businesses.