Potential of technological startups in Hungary

Startups became one of the most promising ways of starting a flexible and developing business and there is no more rapidly developing area of business than tech. In this new world, does Hungary provides a promising climate for tech startups?

If you’re looking for a place with plenty of startups in Hungary, look no further than the capital, Budapest. It has marked its position in Europe as a tech hub that is on the rise. In recent times, Hungary has become alluring to various startups because of the availability of talented developers and engineers. In addition, there’s an increase in active homegrown VCs, and also the government is startup friendly.

The Early Days

One of the most prominent names when it comes to startups in Hungary is one Peter Zaboji. He is regarded as the father of the Hungarian startup ecosystem. He’s credited with laying the foundation for today’s thriving tech scene by coming up with various events and organizations that would bring together entrepreneurs.

After the successful buyout of Tenovis and its ensuing successful exit, Zaboji returned to Hungary at the commencement of the startup dawn in Hungary. He attempted to infuse in the Hungarian community the notion that business and innovation needed to be done on a global stage. In 2009, he came up with the Venture Acceleration Course (VAC) in Budapest. It was an English language entrepreneurship workshop series that aspired to offer basic education on the business side of creating a company.

Before 2009, even though there were various early stage technology companies, not much of what could be considered as a startup ecosystem existed. The arrival of Morgan Stanley in Budapest in 2006 created a challenging environment for startups. It offered attractive wages, so most people wanted to work there. However, Morgan Stanley’s arrival made the IT sector more attractive to future startup employees.

Peter Zaboji’s English language entrepreneurship course and the various entrepreneurial events he organized encouraged attendees to begin to think bigger and come up with products that could target the international market rather than the local market only.

Education in Hungary

We all know that education is crucial for the development of a thriving startup ecosystem.

Historically, even though Budapest has been behind when it comes to education, it has gradually started to make progress. Years back, universities in Hungary were traditionally known for their focus in the field of life sciences. Fields like business studies and innovation have never been that competitive with Western European Universities. However, things have begun to change. Budapest University of Technology and Economics specializes in the fields of math, physics, and technology.