Everything You Need to Know About Hungary’s Startup Ecosystem
Hungary is a gorgeous country filled with culture and a rich history. You may not know that Hungary is also well known for its incredible contributions to science and technology.
The country’s startup ecosystem has grown exponentially in 2024 and will continue to attract local and international investors in the new year.
It helps that Hungary has a strong business sector and a well-educated, loyal workforce. The government is committed to supporting both, which is why Hungary is one of Europe’s most exciting startup hubs.
Why Hungary’s Startup Ecosystem Continues to Thrive
Budapest is at the center of Hungary’s startup evolution. A large community here includes innovators, investors, and entrepreneurs. This is why Hungary is home to several tech-based startups that include software and AI.
The startup culture in Hungary is identified by creativity and a no-fear approach to risks. These are essential elements for new businesses to succeed in Hungary and worldwide.
It should come as no surprise then that the startup ecosystem in the country is worth more than $2 billion. Several local companies have reached unicorn status recently, a big leap from just a couple of years ago.
Sectors Driving Hungary’s Startup Growth
Some startups outperform others in Hungary, particularly if they operate in specific sectors. These sectors include:
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Technology and software. The country’s technology and software development sector is dominant in 2024. Budapest, in particular, boasts a strong workforce of software engineers, developers, and IT professionals. The availability of such skilled employees makes Hungary a great location for startups focused on technology.
Sectors that incorporate AI, blockchain, and cybersecurity are doing exceptionally well. Companies within these sectors are also gaining international recognition.
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Health and biotech. Hungary has a reputation as a center for medical research and health innovation. Therefore, startups focused on digital health and biotechnology continue to receive increased investments.
Moreover, Hungary has a well-established pharmaceutical industry, which, combined with a renowned research base, allows the country to lead in this sector.
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Green tech. There is ongoing worry about the escalating global climate crisis. Hungary’s startup ecosystem has embraced green technology in response. Green tech companies continue to introduce sustainable energy solutions and waste management technologies.
In the coming year, Hungary will likely become a centralized location for cleantech startups as the fight against climate change intensifies.
The Future of Hungary’s Startup Ecosystem
All indications are that Hungary’s startup ecosystem will continue to grow in 2025. The country is embracing innovation and entrepreneurship, allowing it to offer several opportunities for startups in Central Europe.
Sources
https://www.metubudapest.hu/about-hungary-country
https://nandbox.com/hungary-the-tech-hub-of-central-and-eastern-europe/
https://www.linkedin.com/pulse/how-hungary-shaping-its-global-startup-tech-ecosystem-iw8jc
https://www.demium.com/blog-posts/why-budapest-is-the-place-to-build-a-startup-in-cee
https://www.startupblink.com/startup-ecosystem/budapest-hu
https://xpatloop.com/channels/2024/06/value-of-hungary-startup-ecosystem-exceeds-usd-2-billion.html
https://www.mckinsey.com/featured-insights/europe/fueling-the-hungarian-start-up-ecosystem
https://www.griddynamics.com/blog/which-country-has-best-web-developers
https://startupgenome.com/articles/budapests-tech-ecosystem-by-the-numbers
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