The purpose of the OTP-DayOne Seed Investment Fund is to provide equity financing for projects that are in a very early, so-called „seed” stage. The Fund seeks projects and startups in the CEE region that are in the initial phase with an innovation focus. The ideal investment target is capable of building up a high level of professional knowledge and has an innovative and unique business idea. These startup companies have to come up with a business plan or development plan that explains their equity need. The plan also has to include their idea of how that equity will facilitate value creation in order to attract new investors for follow-up investment at a higher valuation, or result in a successful buyout in a few years time.
The Seed Investment Fund started its activity in November 2013, the share capital of the fund is HUF 1 billion (approx. EUR 3.3 million), which will come from private investors. The average investment size is to be 50-100 million HUF (approx. EUR 160-480 thousand).
The fund also intends to support the startups in entering the market and in developing successful operations by performing hands on management of the portfolio companies.