OTP Venture Capital Fund I.

The OTP Venture Capital Fund I. focuses on innovative start-up companies and businesses in operation for less than five years, or business opportunities meeting the same criteria, which have the potential to achieve a competitive edge through their unique business activities and novel approaches. Ideal targets, therefore, are believed capable of achieving dynamic international expansion in their relevant markets. The Fund is interested in industries, activities and business ideas which bring together advanced professional knowledge, innovative solutions, unique technology or creative results, possibly subject to patent protection. Target companies are ones seeking an investment partner offering capital and appropriate business knowledge and networks to help them enter the market, acquire new markets or expand.

The OTP Venture Capital Fund I. was founded with 6.8 billion HUF in share capital and started its investment activities under the framework of the New Hungary Venture Capital Program JEREMIE I. The Fund has a planned duration of 8 years, with an investment period lasting until 2013 according to the JEREMIE I. program. Also according to JEREMIE standards, no investment decision may exceed the HUF equivalent of 1.5 million EUR per company. This investment may be repeated two more times, and individual investments in one company may not be less than 150 million HUF.

The Fund may only obtain shares in the investee company as subscribed capital or capital reserve. The Fund is not intended as a vehicle to obtain majority ownership or to take over operational control in any company. This is to be left in the hands of the company’s management; the Fund seeks only to ensure its rights as a majority owner through single voting rights. Through its investments, the management team of the Fund – in addition to financial resources – places its entire business network and experiences in market creation at the disposal of the company. As a result, the capital invested may best serve the growth of the investee company and ensure its successful international expansion.