New Possibility for Hungarian Companies Developing Defence Technology

The DIRI, together with the Embassy of Hungary in London, organized an event entitled The Importance of International Financing in International Defence Innovation, NATO Programs at the headquarters of the NIF in London on 27 February. The event was attended by the top leadership of the DIRI, the Ministry of Foreign Affairs and Trade and the Ministry for National Economy, as well as by the owners of significant risk fund managers in Hungary, the leaders of the NIF and the Defence Innovation Accelerator for the North Atlantic (DIANA), illustrious British businessmen and foreign (British, Canadian and Austral) diplomats.

The event was opened by Brigadier General Dr. Imre Porkoláb, Ministerial Commissioner for Defence Innovation and Ferenc Kumin, Hungary’s ambassador in London. Péter Sztáray, State Secretary for Security Policy and Energy Security and Patrick Sikorsky, leader of capacity and ecosystem building in Eastern and Central Europe at the NIF held speeches there. The event was also attended by Bence Gerlaki, Deputy State Secretary responsible for Economic Development Strategy and Outward Direct Investment; and Hungarian fund managers had the opportunity to introduce themselves and learn about the activities of the NIF.

“The DIRI aims to provide an opportunity for Hungarian startups developing dual-use technologies to access the market, meanwhile strengthening Hungary’s engagement in NATO. Therefore, the DIRI is in close collaboration with the NIF to connect it to the successful domestic capital market actors. The series of events in London also served this aim” – underlined Dr. Imre Porkoláb. The event also served as a base for this year’s organization of the NATO Innovation Week first organized in September 2023, in the framework of which representatives of the main bodies of the Treaty dealing with innovation will visit Budapest to learn about the Hungarian innovation ecosystem.

The NIF makes investments for strategic purposes possible as venture capital funds in dual-use (defence and civil) startup companies crucial for the Treaty, which are developing emerging and disruptive technologies. The idea behind this is that it is hard for startup companies developing cutting-edge technology to find investors due to the longer market access time and the capital intensity of the development. This difficulty is eliminated by the NIF by making long-term (15-year) investments while focusing on developments at an early stage. The NIF also invests in other innovative venture capital funds if the given investment is in harmony with the strategic goals of the Fund.

Press release by the Ministry of Defence