EIF IN
HUNGARY
Investing in the future of Hungarian SMEs
Investing in the future of Hungarian SMEs
Small and medium-size enterprises are the heart of the Hungarian economy.
Representing 99% of all businesses and more than two thirds of the workforce, Hungary's 609,000 SMEs are responsible for driving innovation as well as spurring on growth, and their daily routine is what ensures the competitiveness of the Hungarian economy. But to do that, they often need finance.
At the same time, as the smallest actors in the economy, they are often the hardest hit when the economy encounters turbulence, which is why it is so crucial for them to have financial options in order to maintain and eventually grow their businesses.
At the EIF, our mission is to improve access to finance for small businesses across the EU. In Hungary, we have been supporting SMEs using a broad range of instruments, including many tailored to the needs of the Hungarian market and designed with the Hungarian government and local authorities.
As a result, we've been able to support more than 15,000 Hungarian businesses, ranging from companies developing hardware and software solutions in the field of intelligent transportation to specialised marketing software and even a Budapest restaurant with a social mission, making sure they have the financial fuel they need to pursue their ambitions.
Our intention is to continue to extend this type of support to the Hungarian market, making access to finance easier as we collectively move towards a greener, digital and more inclusive Europe.
Success stories
Hegyvidéki Ízlelő
Success stories
Hegyvidéki Ízlelő
“We don’t give up easily on anyone,” says Noémi Ambrus Kiry, CEO of Hegyvidéki Ízlelő, a restaurant in Budapest’s 12th district. “It can be the ninth knife we buy for someone until they can peel potatoes, but we’ll insist. Something doesn’t work? What can we do to help—like lowering the workbench for wheelchair users. It’s a lot of hard work and patience, and even after 8 months they still might not peel those potatoes perfectly.”
Hegyvidéki Ízlelő is a restaurant with a cause—a social enterprise employing mostly workers with mental or physical disabilities like autism, hearing or mobility issues. Although the business is the primary focus, they treat their staff with respect: “We don’t use our staff as the selling point, but the quality of the food, and that’s reflected in the pricing. We’ve had guests who don’t realise what the restaurant is about – for us, this is a very good sign. Too many people with disabilities work in segregated workplaces doing repetitive work for minimum wage. We show that disabled people are able and capable.”
Commsignia
Initially, the internet was about connecting computers, but now it’s increasingly about connecting things like vehicles or traffic lights. Jozsef Kovacs, co-founder and CEO of Commsignia, set up the company on the back of research in the field. He was particularly interested in information sharing when everything starts to move…
Founded in 2012, Commsignia specialises in the development of hardware and software solutions in the field of intelligent transportation, with a mission to increase traffic safety and efficiency on the road. This includes Vehicle-To-Vehicle (V2V) and Vehicle-To-Infrastructure (V2I) communication technologies—together known as Vehicle-To-Everything (V2X). V2X communication means connecting cars to cars, pedestrians or infrastructure.
Information collected and shared can help drivers make better decisions: “In a sense, it’s a bit like a remote sensor – you are receiving sensors from other vehicles, or other fixed infrastructure,” explains Jozsef. The data generated can also be used to monitor traffic violations or collect info relevant for insurance companies or smart city management.
Recart
“This is the next generation of marketing: Instead of sending emails to a promotion folder, we help businesses get better results by automating chat conversations with their customers on Facebook Messenger. Whereas emails would have a 10-15% open rate, taking a conversational approach will get you 90-95% open rates - and 1/3 will actually engage too. No flooding inboxes, no spam. It’s more personal than any other channel,” explains Soma Tóth, CEO of Recart.
In 2015 Soma founded Recart to help e-commerce merchants increase sales through messenger marketing. In 2022, the company switched from Messenger to SMS marketing to stay on top of market trends. Today, Recart is installed by more than 185,000 merchants and the business has sent messages to more than 100 million people throughout the world. There’s no secret behind Recart’s success, no sophisticated AI software. This is pure marketing know-how on the right channel.
Antavo
“We’ve been through a lot, from changing countries to working day in and day out in our living room,” says Zsuzsa Kecsmar, Chief Marketing Officer and co-founder of Antavo. “We ran a website development company before Antavo. With time, we shifted to marketing software, which allowed us to have a longer-term relationship with our clients, something we really preferred. Initially we focused on software specialized in attracting new customers through marketing, but today we work on customer retention, producing marketing software to help retailers and fashion brands build loyalty schemes.”
Antavo’s software has helped more than 30,000 businesses across 5 continents, including big names like BMW KFC and Björn Borg. And they are poised for the future. “The minute you solve one problem, another one comes up. But even if we’re in uncharted territory, we believe in our team a lot. Things take their time, but nothing can crack us. We can change direction, we can adapt and we can find solutions to keep moving forward.”
Key figures
Over
of EIF financing
Transactions with financial intermediaries
Equity investments since inception
Guarantees support since inception
made available for
Hungarian businesses
Mandates in focus
The EIF continues to deploy capital in Hungary under a wide range of strategic programmes and mandates. Below are brief summaries of our main initiatives in Hungary.
InvestEU
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It is helping to mobilise private investments for the EU’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU Programme brings together under one roof the multitude of EU financial instruments previously available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
RCR
The EIB’s Risk Capital Resources (RCR) is the core pillar of the EIF’s equity activity. It has enabled us to pursue our equity strategy in the venture capital and growth segments for more than 25 years. In 2023, RCR accounted for 25% of our equity activity, committing €1.4bn to financial intermediaries.
EFSI
The European Fund for Strategic Investments formed part of the EU’s Investment Plan for Europe, launched by the European Commission in 2015. EFSI addressed market gaps in financing - whether in infrastructure, research, energy efficiency or risk finance for SMEs – and mobilised private investment into these areas. Through EFSI the EIF deployed €10.5bn in resources of the European Commission, the EIB and the EIF to improve access to finance for SMEs and small midcaps.
REPowerEU
The EU launched REPowerEU in 2022 to reduce dependence on fossil-fuel imports and accelerate the green transition. To support the plan, in October 2022, the EIB Group developed a package of measures focussing on renewable energy, energy efficiency, electricity networks and on deepening its engagement in green innovation and breakthrough technologies. Under REPowerEU, the EIF will invest €4.5bn by 2027 through EIF equity products.
CEFoF
The Central Europe Fund of Funds (CEFoF) is a €97m fund-of-funds initiative created in close co-operation with the governments and national agencies of Austria, Czech Republic, Slovakia, Hungary and Slovenia to boost equity investments into SMEs and small mid-caps across the region, establishing a sound market-based risk financing infrastructure, implementing the best market standards for equity investments in businesses and attracting institutional investors and investment managers to Central Europe.