Participants of the programme

• Deputy State Secretariat for the Implementation of Economic Development Programmes of the Ministry of National Economy as Managing Authority
  
• Hungarian Development Bank as the implementing organisation of the fund of funds
  
• financial intermediaries as fund managers
  
• final beneficiaries as eligible businesses under the equity programme
  

 Financial intermediaries are selected in an open, transparent and non-discriminatory public procurement procedure in line with EU and national law.

The final beneficiaries of the programme

• SMEs with a high growth potential,
  
• in startup or early stage,
  
• pursuing or ready to pursue RDI activities.
  

Preference will be given to projects that directly or indirectly relate to the following objectives and specialisation directions of the National S3:

• Healthy society and well-being
  
• Advanced vehicle and other engineering industry technologies
  
• Clean and renewable technologies
  
• Sustainable environment
  
• Healthy and locally produced food
  
• Agricultural innovation
  
• ICT and services
  
• Inclusive and sustainable society, livable environment
  
• Smart technologies
  

Available budget

The total budget of the equity programme is HUF 5.49 billion. The final beneficiaries will receive HUF 200 to 1500 million capital investment from the financial intermediary subject to the conditions determined in the investment negotiations.

The proportion of private equity

If the venture capital financing takes the form of capital investment, quasi-equity investment or debt investment, the eligible businesses need to involve additional financial sources so that the proportion of private equity on aggregate reaches

• in the case of eligible businesses which have not yet implemented their first commercial sale in a given market: 10% of the provided venture capital financing;
  
• in the case of eligible businesses which have been present in a given market for less than 7 years from their first commercial sale: 40% of the provided venture capital financing;
  
• in the case of eligible businesses which, on the basis of a business plan prepared for the purpose of entering a new product or geographic market, request first venture capital financing in excess of 50% of their average annual sales revenue in the previous 5 years and in the case of additional investment into eligible businesses after the above-mentioned 7-year period: 60% of the provided venture capital financing.
  

Schedule of the programme

• Announcement of the call relating to the selection of fund managers: by 31 March 2017.
  
• Selection of fund managers: 2017 Q3
  
• Start of selection of the final beneficiaries: 2017 Q4
  
• Adoption of investment decisions: by 31 December 2023
  
• End date of settlement period: 31 December 2023
  
• Last date of expenditure charged against the Fund: 31 December 2029
  

(Without refunded sources: 31 December 2023)

• The duration of the capital fund is 13 years.
  

Full description of the equity programme:

https://www.palyazat.gov.hu/vekop-212-17-intelligens-szakosodsi-kockzati-tkeprogram-1