Funding Hungary: Ten Startups share HUF 600 million of EU subsidies
OXO Labs selected 15 innovative investment projects of ten companies for financing, also making use of Economic Development and Innovation Operational Programme (GINOP) 2016 grant funds. A total of HUF 600 million was invested in ten startups, whose solutions include a mobile application enhancing production efficiency, a utility cost free home that can be built in 60 days, a cashless payment solution, a new generation workplace communication application, and an e-sport trainer.
OXO Labs announced that the company has completed the investment of the 2016 GINOP funds half a year earlier than the deadline originally set.
Hungarian startup enterprises implementing innovative products or services have received a total funding of six hundred million forints as well as professional help for product development and market entry from the venture capital company specialized for enterprises in initial and early stages. This amount was distributed amongst a total of fifteen projects at ten companies. According to communication issued by the company, the program was implemented by OXO Labs with an own financial contribution of 20 %.
The basis of selection was in all cases the innovation content of the project. An equally determining factor was the market potential of the idea. There are several enterprises that have managed to involve other venture capital, and there are also some that are currently negotiating this, said Peter Oszkó, founder and owner of OXO Group, who believes that this comprehensive investment program of several hundred million forints has been even more successful than expected.
The fundamental aims of the GINOP established in 2013 are the sustainable development of the Hungarian economy, high added value production, and increased employment. The initiative covering the period of 2014 to 2020 helps the inflow of over HUF 2500 billion in EU grants into the Hungarian economy, an increasingly important parts of which is startup innovation: this is the ecosystem which holds in stock new success stories after BalaBit, LogMeIn, NNG, Prezi or Tresorit, which have already grown to a globally dominant size.
OXO Labs selection
OXO Labs selected fifteen innovative investment projects of ten companies for financing, also making use of GINOP 2016 grant funds. OXO Labs has invested a total of HUF 600 million into the ten startups. The startups receiving grants include a company performing development in the world of digital gaming, an industry 4.0 production efficiency enhancement application, an enterprise offering a solution to the development of the mobile workplace, a fintech solution pioneering cashless payment, but also a team developing an innovative building which can be constructed in sixty days and offers a home without utility costs to buyers.
These grants facilitate the growth of Hungarian exports in a segment with high added value, helping the development of enterprises which are successful on the long term using EU funding. Within this structure, we are able to assist and promote entrepreneurial ideas as market investors which we would otherwise deem to be too rudimentary or, as it happens, too risky if we were using our own funds only. This way, however, we can finance initial growth by supplementing our own funds which can help the most promising ideas get to the stage of market entry. From this point, either us, or other investors may be able to provide further financing using own funds only—said Péter Oszkó, founder and owner of OXO Labs regarding the importance of GINOP funds.