Start-ups / Venture Capital and Private Equity

What can we offer to Start-ups?

We are avid supporters of technological entrepreneurship and innovative business models.

 

Many of our colleagues actively participate in developing start-ups or regularly train groups of entrepreneurs in start-up incubators or at special „busines meets university” programs” organized by the developing start-up ecosystem in Hungary. We also host and help at investor pitching and start-up introduction events.  This way we gain an insightful understanding of the kinds of mentoring and legal assistance that start-ups need for the establishment of the venture, for the development and implementation of  the business idea, what they need in order to form a strong leadership and implementation team, for the protection of IP rights, and for finding the right financing to reach the various development rounds of the venture - from prototyping minimally viable products,  through introducing the product to the market, to ultimately growing the business to a multinational enterprise.  We also advise on stock option programs and other forms of incentivisation for team members participating in the success of developing the venture, and can help to solve ownership disputes which come up as the business grows and as financial investors become involved or need to divest at the end of their investment term.

 

What can we offer to the VC/PE industry?

On the regulatory financing side, as a long standing member of the Hungarian Venture Capital Association we participate in a number of development programs and industry position papers which aim to articulate the special regulatory requirements of the developing venture capital and private equity industry in Hungary. 

 

On the transactional and deal flow side, for decades we have assisted business angels, as well as local, regional and global venture capital and private equity fund managers and investors in connection with their equity investments into, and their divesting from corporations in and outside of Hungary.

 

Transaction advice to Exists

We also help portfolio companies and PE investors to prepare the portfolio companies for a possible stock exchange or public offering exit and also advise them during the process of the IPO which, although currently is not a frequent event on the Hungarian market, may be a potential option in the near future due to the development of the Budapest Stock Exchange's so-called Xtend alternative market, which will be ready for issuers seeking smaller capitalization and the chance to be listed and traded on an MTF platform before making a larger scale IPO and seeking full listing on the BSE.

News, developments

We are co-authors of the „Tőkebevonási Kalauz”, issued by the Hungarian Venture Capital Association, which is a guide on venture capital and private equity investments to start-up or growing corporations seeking to involve external equity financing to grow their businesses and increase the transparency of the operation of their enterprises or solve ownership disputes or the questions of succession.

Please see the 2018 issue here.

 

We are co-authors of a „Sample Venture Capital Investment Terms Sheet” issued by HVCA, which is a tutorial material primarily for start-ups seeking to grow via the involvement of venture capital investment. The tutorial material is aiming to explain the main business and legal terms of a VC investment and the business motivation of the VC investors.

Please see the tutorial here.