There are an increasing number of players in the space and defense industry in Hungary that may attract the interest of private investors, said the Deputy State Secretary for Technology, Space and Defense at the 9th Venture Capital Summit conference in Budapest on Wednesday.
Szabolcs Szolnoki highlighted the Hungarian satellite and space equipment manufacturing center soon to open in Martonvásár (near Budapest) and the HUNOR program among the opportunities for breakthroughs in the space industry. A new space and defense industry strategy will be released soon, presenting significant investment opportunities and investments, he said. In his view, the main topic of most international defense and space industry meetings is increasing the role of private investment and capital funds, but this is not easy.
Hungarian astronaut Tibor Kapu Photo:MTI/Axiom Space
In his presentation entitled The Role of Venture Capital Investment in Strategic Sectors, the deputy state secretary emphasized that the ministry basically performs regulatory tasks in the fields of space and defense, and also operates and supervises background institutions and state-owned companies that, for example, manage or manufacture significant defense industry capacities.
The Ministry for National Economy (NGM) also plans financing in the field of space industry and space technology, and promotes the formation of international consortia, primarily through the European Space Agency.
He pointed out that the space industry and the defense technology sector used to be the closed world of state actors and large companies. Today, they are experiencing a strategic opening to venture capital, and technologies suitable for both civilian and military purposes are gaining ground. He added that the innovation programs launched by NATO and the EU offer growing opportunities for investors. He considered it favorable that large integrators have already appeared in the defense and space industry ecosystem, which are strategic partners of the state, citing the German company Rheinmetall as an example.
He explained that in 2024, global venture capital investments in defense technologies amounted to $3 billion, representing an annual growth of 11 percent. Meanwhile, $3.1 billion flowed into the space industry in the second quarter of this year alone.
Szabolcs Szolnoki explained that knowledge of the Hungarian ecosystem is important to the NGM, as many financing funds are built from the bottom up.
For investors, these sectors involve specific risks, including export controls, special security clearances, and geopolitical risks.
Many projects are confidential or classified, he noted, adding that targeted state and international programs, co-investors, and international organizations help with financing.
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Via MTI; Featured image: Pixabay
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