BUILDING SUCCESS STORIES

active investments
2023 EoY: 55
2022 EoY: 37
0
balance sheet total
2022 EoY: 1.5bn HUF
2021 EoY: 1.4bn HUF
0 bn HUF
course participants in 2024
2023 year: 674
2022 year: 311
0

Some of the data are unaudited, indicative data, most recently updated on 22 May 2024.

Our mission

Our mission

Our goal is to grow more internationally successful companies from Hungary and the region that can scale globally. Companies strengthening the economy by their success, increasing its competitiveness and making the country more liveable. This is a fundamental idea that runs through all the activities we do.

Of course, for this to work, it all has to be financially successful and set up as a profitable business. So we build business models that are mutually beneficial, both for us and for the companies we help. In other words, we are not a charity, but a for-profit company run by professional management.

Our plan

STRT’s two main activities are early stage start-up investment and executive education. On the one hand, we give start-up teams a chance by investing in their company, financing their first, very risky period. On the other hand, we bring up-to-date, cutting-edge business knowledge to our investments and to the managers of other companies to help them achieve greater success. The two are closely linked, with several synergies both in terms of operations and long-term financing.

Our goal is to become one of the leading startup investors in Central Europe, managing a diversified portfolio of thousands of startup investments. A further aim is to increase the impact and availability of educational programmes and to offer stock market investors an attractive and reliable investment opportunity, thereby creating a new funding channel for private investors to access the returns of the start-up world and innovative companies. This will create a more optimal investment opportunity for investors and give start-ups greater access to patient, market-based funding on a larger scale. The exchange-traded structure allows us to maximise the return on a successful investment with more flexible time horizons than closed-end funds, optimised for long-term returns and without exit pressure.

Startup investments

International studies and research show that early-stage start-up investment is one of the highest return investments in the long term. However, it is also one of the most difficult to access, as investing in start-ups is risky, complicated and illiquid in the long term. A significant proportion of high-potential start-ups fail, and the success of the entire portfolio is created by the outstanding success of a small proportion of them. Therefore, the predictability of a startup investment portfolio is determined by the number of investments and their diversity. In addition, this type of investment cannot be “exited” at any time, as the money invested is spent and cannot be returned. The return to the investor typically comes from the sale of the company, which can take place up to a decade after the start-up.

One of the reasons why STRT was created was to make this asset class accessible to stock market investors without the complexity. A significant proportion of our listed company’s assets are in this type of investment, and our aim is to continuously increase the number and value of these investments, diversify them and thereby diversify risk. Although we invest in long-term, illiquid assets, it is the stock exchange that makes our shareholders’ investments liquid, as they can trade freely in our shares.

Vagyoni mutatók

STRT Holding és leányvállalatainak konszolidált és az összevonást megelőző mutatói

The past performance of investment asset classes is not a predictor of their future performance. Returns on this type of investment may vary by country, period, etc.

Leadership training

Globally, one of the fastest growing segments in education is management training, with industry growth exceeding 10% per year (source). In the domestic market, relatively few people are involved in this, and it is a dwarfed market next to basic and vocational training. But we see a new, younger generation of entrepreneurs who are more open to learning than the first generation of great entrepreneurs. This is borne out by the rapid growth of the companies involved and our own results.

Our goal is to become a leading player in the domestic and regional market in the field of management training, with a strong focus on innovation, international expansion, modern technologies and modern business methodologies.

Árbevétel

A cég árbevételét a tantermi oktatás hajtja

Résztvevők

Tantermi oktatásban résztvevők száma

As a key part of our work is mentoring start-ups, our team closely follows the development of business management methodologies and business-relevant practices. It is therefore a unique opportunity for us to market the knowledge and experience gained here beyond the start-up sector, to both SMEs and large corporations. But our education activities also support our investment business, as we can increase the success of our investments by training their managers. In addition to our professional objectives, the profits from our educational activities also make a significant contribution to financing the operational activities of the company. One of the biggest challenges of start-up investments is that they create value in the long term, but have no short-term cash flow. As a result, operational costs eat into the firm’s capital, reducing long-term returns. This is offset by the educational activity, which is able to reduce the company’s operating losses by a significant margin.

Results so far

We have big dreams and a big axe to grind, so we try to rise to the challenge as quickly as possible. This is helped by our professional team, our many supporters and partners, and the gap we fill in the market. As in 2023, so far in 2024, the continuous scaling-up of activity will continue.

Read our 2023 Annual Report, watch our video of the General Assembly or scroll through our presentation!

Befektetések száma
Oktatási bevételek
Oktatásban résztvevők

The 2024 data are unaudited, indicative data, most recently 2024. updated on 22 May.

Megatrends

In 2023, domestic startup funding will be significantly scarce, with state and EU funding running out. This scarcity of resources has created special opportunities for us: lower valuations and less competition among investors allow us to acquire valuable stakes in companies with high potential. The year 2024 is particularly exciting for new technological developments such as artificial intelligence applications, sustainable energy technologies and healthcare innovations, which promise rapid market growth for startups.

Which companies we invest in

STRT invests in early-stage start-ups that are innovative, have high growth potential and are able to respond effectively to market changes. We pay particular attention to companies in the technology, healthcare and sustainability sectors.
As a result of our diversification strategy and high investment volume, we are an industry-agnostic (AI, Deep tech, SaaS, EduTech, Sustainability, IT infrastructure, etc.) investor. We are looking for companies that have the right founder-management team, international ambition and are developing some technological and market innovation.

At STRT Holding, we maintain a high level of investment and significant diversification, while acting as an evergreen, or patient, investor. This means that we are committed to investing for the long term, not to push for a quick return, but to support sustainable business growth.

Iparágak

2023 év végi portfólióérték, iparágak szerint összesítve

Investment phases

  • Incubation investment (Launchpad)
    In the incubation phase, we support early-stage companies that are still in the idea and team building phase. In this phase, we will provide HUF 3-8 million to help businesses develop their business model and take their first steps towards the market. We also provide intensive mentoring and training through our Launchpad programme to prepare them for the challenges of the market.
  • Seed investment
    Once companies have validated their ideas and have built their first prototype, that’s when we step in with seed investment. In this phase, we will provide grants of HUF 10-38 million to help businesses validate their market presence and generate their first revenues. This investment will provide the necessary capital for product development and market launch.
  • Next round investment (follow-on)
    Once businesses start generating stable revenues and are ready to grow further, we will provide additional support with our next round of investments. These follow-on investments give established businesses the opportunity to further expand their market presence and enter new markets. Examples of such investments include BookR Kids, Munch, Medicorp and Roksh.

Together, these investment stages ensure that we can support businesses at all levels, from initial idea to market maturity and beyond, while minimising investment risks through diversification of our portfolio.

Our investment portfolio

Portfolio evaluation

The audited methodology for valuing our portfolio is essentially a combination of cost, a specific valuation based on the investment contract and a market multiples based valuation, which is updated every 6 months.

  • At cost: the amount invested at the time of investment.
  • Transaction-based: on an exit valuation basis, at the post-money value of the last capital injection, taking into account preferential rights.
  • Comparables: revenue-based multiplier, including country risk discount.

Economies of scale

Economies of scale are key for an investment firm such as STRT Holding, as they allow the creation and management of a larger investment portfolio, while reducing the costs per transaction and per operation. The cost advantages of larger size allow the company to offer services at more competitive prices, making it more attractive to investors and startups alike. An important indicator for investment companies is the operating loss per asset under management. The earlier the stage of investment and the smaller the average investment size of a firm, the higher its incremental costs. STRT Holding invests in early-stage start-ups in a very large scale relative to the size and assets of the company, so the efficiency of its processes and the size of the assets under management are both important factors in ensuring that the return on its investments is not eroded by operational activities.

Dividend payment

We want to embody value creation essentially in share value and growth. At the moment, we do not plan to pay dividends because we are using all available capital to finance growth and investments. The company’s strategy for the coming years is to prioritise long-term growth and increasing the value of the portfolio over paying dividends. In the longer term, as the firm reaches economies of scale and a self-sustaining growth path, this may of course change, if the financial situation and market conditions allow.

Funding

Like other investment companies, our aim is long-term wealth accumulation. However, investment activity, while creating value in the long term, is costly in the short term and, by its very nature, does not have a short-term income to cover it. Thus, the company’s main objective is to keep these costs low while increasing the value and diversity of its portfolio, and to offset its costs to an increasing extent with the profits from its educational activities, thereby reducing risks and increasing returns for investors.

STRT relies primarily on the long-term returns from its investments, which typically come from the sale of companies up to a decade after the investment. Ownership in companies is illiquid and initially involves a large investment. Due to the firm’s investment strategy, the short-term cash flow is negative, as it plans to invest more capital in the growth phase than it exits (sells). To offset this, the company makes regular capital injections.

Regular capital injections allow our firm to maintain its operations and expand its investment activities without depleting its liquid assets. In order to be efficient, STRT Holding still needs to grow to achieve economies of scale. This strategy also helps the company to achieve its long-term goals, such as expanding its portfolio and strengthening its market position.

Company information

  • Company name: STRT Holding Nyilvánosan Működő Részvénytársaság
  • Headquarters: 1024 Budapest, Lővöház utca 39. 2nd floor
  • Company registration number: 01-10-142074
  • Tax number: 32110160-2-41

Investor contact details

  • Name: Péter Langmár
  • Position: Investment Manager
  • Postal address: 1024 Budapest, Lővöház utca 39. 2nd floor
  • Phone number: +36304171010
  • E-mail address: investor@strt.hu

Useful links

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