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Seed investment

Targeted companies

The Seed investment program supports micro- small- and middle-sized enterprises that already realized the significant part of the product development, market validation, finished with market testing, however in order to reach the next level they need extra capital, which requires a business plan. The investment time horizon is two years.

The type and volume of the investment

The investment is realized through capital increase (share capital + capital surplus), and can be completed with shareholders’ loan. The program provides a standard range of 20-150 million HUF (approx. 65 000 – 485 000 EUR) capital to each company, whereat we request a minority interest in the invested company in return. The payment is transferred in two installments in different proportions. In order to receive the second installment we require a detailed report about the use of the first installment, outputs and accomplished milestones.

Financing costs

According to the investment contract and business plan, only those costs can be financed that are directly related to the operation of the target company, and are eligible by the relevant legislations (e.g. market research, mentor and incubator services, salary, etc.).
Project evaluations are based on:

  • accomplished results and milestones
  • project’s financial implementation (cost structure, revenues, profit)
  • project’s innovation content
  • business plan justification
  • the experience and track record of company owners
  • team structure, number of owners
  • co-investors type (if applicable), existence and investment volume
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