The Irinyi Venture Capital Funds are managed by the 100% state-owned Széchenyi Venture Capital Fund Management Ltd. The Funds are operating in line with the industrial development plan in Hungary, the Irinyi Plan, to support various industrial segments and the improvement of small and medium sized enterprises with great growth potential.
The Irinyi II. fund – focusing on the central region – invests at most EUR 800.000 per deal, while the Irinyi I. fund provides financing of up to 1 billion HUF to companies located in the convergence region. Both invest typically for 4-5 years, and gain a 10-49% ownership acting as a silent partner. Their exit policy prefers buyouts by the founders/management. The target enterprises are typically, but not exclusively younger than 5 years, however, it is important to point out that these enterprises are not in the seed and startup stages, but rather are spin-offs.
The funds’ objective is to provide financing opportunity mainly for manufacturing enterprises. The Funds manage approximately HUF 16 billion that primarily targets enterprises operating in one of the high-priority industries identified by the Irinyi Plan, with a special focus on developments related to digitalization and the fourth industrial revolution.
High-priority industries are:
- vehicle industry
- healthcare industry
- chemical industry
- information and communication technology (ICT) industry
- energy industry
- food industry