Manage Fund

INVESTMENT STRATEGY

The duration of DBH Venture Capital Fund is 10 years, within this the investment period ends at 31 December 2015. The target audience of the fund is exclusively the small- and medium sized enterprises with registered seat in Hungary. Further departmental and operational restrictions regarding these enterprises are detailed under investment terms.

The fund intends to help to grow start up and innovative small- and medium sized enterprises, which will be able to buy the fund independently by the management or with the help of professional investors, after the efficient operation at the end of the 2-6 year investment period.

Regarding target companies we do not define exclusive departmental preference, however the projects of innovative, technologically intensive, high-tech industries have the best chance in the competition.

Regarding the development status of the projects, primarily we aim at the investment possibilities got over the ’business angel’ phase. Accordingly the minimal investment size is planned to be 50-70 million HUF.

The fund usually prefers the projects between 150-400 million HUF. Due to the tender restrictions the maximal amount of capital to be invested to an enterprise is 400 million HUF within one economic year. By the following investments it allows even 1.200 million HUF investment within 3 years.

Within the investment period there is a possibility of granting membership loan. In the target companies we did not define minimal or maximal share, it is determined by the actual project suggestions.

General information

Name of the fund: DBH Venture Capital Fund
Manager of the fund: DBH Investment Venture Capital Fund Co.
Short name of the company: DBH Investment Zrt.
Seat: 1117 Budapest, Gábor Dénes str. 2. Infopark Building ‘D
Trade Registry Number: 01-10-046201
Tax Number: 14488001-1-43
Statistic Number: 14488001-6499-114-01
Main Activity: 6499’08 M.n.s. pénzügyi közvetítés
Activity License Number: E-III/1043/2008
Electronic availability: www.dbh-group.com
E-mail: investment@dbh-group.com
Registered Capital: 5.000.000.000 HUF
Duration: 10 years

INVESTMENT CRITERIA

Main restrictions connected to investment related tender support

The venture capital investments of the Fund will be realized as share acquisition in companies.
The Fund’s venture capital investments located in the Republic of Hungary, not the Central Hungary region Micro-, small-and medium-sized enterprises be indicated,

  • which (or that of any predecessors) by the incorporation / registration data – compared to the first investment decisions, – within not more than 5 (five) calendar years have been formed / registered; and
  • which or a combination of direct and indirect owners of the date of the consolidated net sales of any financial year does not exceed 1.5 (one and a half) billion forints.

Is not feasible to venture capital investment in the Fund for Micro, Small and medium size enterprises,

  • against which a bankruptcy, liquidation or winding up proceedings are pending, and / or whose unpaid debts have expired (unless the tax deferral or installment payment is authorized);
  • of which it is shown that the context of the Common Fund subprogrammes are false, or provided false information;
  • against whom such proceedings are pending, in which, or to place a measure which will result in criminal or penal measures against which the court has ordered restrictions on the activities;
  • which is a firm in difficulty;
  • which operates in the shipbuilding or coal- and steel industry, and the financial sector, or

Venture capital investment is not feasible, or can not be used to fund capital investment made against the following purposes:

  • acquisition of an existing marketing company;
  • institution and other institutions engaged in the business of funding owed or paid by the National Fund for Micro credit, or
  • for financing real estate activities with commercial purposes (ie. Real estate sales).
  • the Fund in point of an enterprise – including an undertaking, or the same person (s) or firm (s) under the control of enterprises – may make decisions connected with investments not more than three consecutive years of economic;
  • in a 12 (twelve)-month period, the Fund may invest a sum of HUF equal to not more than 1.5 million EUR (ie. One and a half million EUR) into an enterprise – including enterprises under the control of a venture or the same person(s) or firm(s);
  • the Fund by a decision of investments may decide the investment of a sum of HUF equal to not more than 1.5 million EUR (ie one and a half million EUR) into an enterprise – including enterprises under control of a venture or the same person(s) or firm(s);
  • the Fund’s investment in all cases should be done by the increasing of the subscribed capital of the company – or by the payment of subscribed capital in case of founding a new company;

Cumulation rules in respect of investments:

  • the small and medium-sized enterprises to venture capital investments in state aid to promote the 2006 / C 194/02 Community Guidelines supported by equity financing, receive,
  • if this capital with other block exemption regulations, guidelines, frameworks or other public assistance on the basis of documents eligible for an initial investment, or other eligible costs used in the relevant aid ceilings or maximum amounts by 50 percent of eligible and targeted for enterprises located in assisted areas reduced by 20 percent in the first venture capital investment in the first three years and not more than the total amount received, and that
  • ethis reduction does not apply to aid intensities by the Research and Development, the Community framework for state aid or block exemption regulation in this area provide.
// ADDED ON 2017.04.21. by Enzo Angiulli