2022 | StartupBlink View the Global Startup Map p. 198 Szeged, ranked 3rd nationally, and Pecs, ranked 4th nationally, also had a significant decline of 108 and 140 spots to 763rd and 921st respectively. As the last Hungarian city ranked in the top 1000, Székesfehérvár ended at 959th place after dropping by 22 spots. As is evident from the Index, Hungary needs to work on restoring Budapest to its original position as a regional leader while investing in the development of other local ecosystems. Startup Ecosystem Overview Hungary has many mature tech companies, such as well-known scale-ups Prezi, Ustream, and LogMeIn. However, in recent years, the ecosystem has not been able to keep up with its previous progress toward creating a critical mass of high quality global startups. This is mainly the result of a challenging political climate and a lack of local IT talent caused by brain drain. This will hopefully change soon, as we have seen an increase of international VC investments, as well as multiple exits including Tresorit, Makery, and Starschema. Talent-hubs and startup networks are also having an increasing impact. Hungary’s startup ecosystem has a number of advantages, including a low cost of business related overhead, a low cost of living, and easy access to the European market. Furthermore, Budapest is a popular digital nomad hub in Europe, with innovative coworking spaces and strong startup networks that attract skilled foreign entrepreneurs. However, Early stage Median round: $0.185M Medium and late stage Median round: $1.415M Startups Funding Share more should be done to incentivize the integration of foreign entrepreneurs into the Budapest ecosystem, including local startup registration. There are different organizations in both the private and public sectors that actively support the growth of the Hungarian startup ecosystems, including government-backed agency Design Terminal, the INPUT program, the National Research Development and Innovation Office NKFIH, Startup Safari, and the ICT Association. Government implemented support initiatives include Hiventures, a government-backed VC firm which became an important player in the local VC scene. There are also several government-backed incubators and JEREMIE (Joint European Resources for Micro to Medium Enterprises) funds.