Is Budapest a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Budapest has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Budapest gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Budapest

Funding is one of the most critical ingredients in building a successful startup – and Budapest offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Budapest's early-stage funding scene is active, supported by both local and international players. Notable VC firms like Hiventures, Day One Capital, and PortfoLion are key investors, often focusing on seed and Series A rounds in technology and B2B software. The Hungarian Business Angel Network (HUNBAN) also connects startups with angel investors. Government support is available through initiatives like the Startup Factory program, which provides funding to incubators that invest in early-stage tech startups. However, challenges persist, including a reported seed-stage funding gap and a significant decline in overall investment volume in 2023 compared to the previous year, mirroring broader European trends. Competition for talent and difficulties in international expansion are also noted hurdles for local founders.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Budapest has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Budapest has a rapidly growing startup ecosystem with significant entrepreneurial activity, positioning itself as a gateway to Central Eastern Europe. The city is well-equipped with numerous coworking spaces and hosts a variety of tech and startup events, including conferences, meetups, and hackathons, fostering networking and knowledge sharing. The ecosystem supports both early-stage and more mature startups. There are programs providing pre-seed and early-stage funding, mentorship, and incubation. While structured programs and accelerators are prevalent, there are also initiatives and organizations focused on providing professional support and business development services, including for young entrepreneurs, suggesting a mix of standardized and potentially personalized support within the broader ecosystem.

For many entrepreneurs, the energy and resources available in Budapest can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Budapest, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Budapest is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Budapest offers a notable talent pool for startups, partly due to strong educational institutions like the Budapest University of Technology and Economics (BME), a leading engineering university. BME and other institutions produce graduates with strong technical skills, particularly in IT, engineering, and data science, which are in high demand. While there's a general shortage of skilled labor in Hungary, particularly in IT, Budapest benefits from a concentration of talent and a lower cost of living compared to Western European hubs, making it attractive for startups seeking skilled professionals at competitive rates. The local talent supports entrepreneurial growth through participation in a vibrant ecosystem with co-working spaces, accelerators, and events. However, retaining top talent can be challenging due to international competition.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Budapest can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Budapest boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Budapest offers a robust ecosystem for startups, featuring numerous co-working spaces, accelerators, and incubators like Design Terminal, CEU InnovationsLab, and OXO Labs. These provide essential infrastructure, mentorship, networking, and business development programs. Funding opportunities are available through various sources, including government-backed initiatives and venture capital firms such as Hiventures. Government support plays a significant role, with entities like the Hungarian Innovation Agency (HIA) and the National Research, Development, and Innovation Office (NRDIO) actively working to improve the ecosystem through funding programs, regulatory support, and promoting internationalization. Initiatives like the Startup Factory program provide substantial funding and incubation support to early-stage companies. This comprehensive network helps startups in Budapest thrive by providing resources, guidance, and access to capital and markets.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Budapest. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Budapest Be Considered the Best Place to Launch a Startup?

There’s no doubt that Budapest provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Budapest face several challenges. While the cost of living is often cited as lower than Western European capitals, allowing budgets to stretch further, local wages can be low compared to living costs for residents. Competition exists, both from other startups and larger multinational companies vying for talent. Regulatory issues and bureaucracy are also significant hurdles, with some entrepreneurs finding it difficult to navigate the legal environment and implement things like stock option plans. Access to late-stage funding can also be a challenge.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Budapest or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Budapest offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash