Venture capital plays a crucial role in fostering innovation and technology development. In Hungary, venture capital investments have primarily gone to larger companies, unlike in Western Europe where smaller companies receive more funding. Recently, there has been a growing interest in supporting early-stage technology-based startups in Hungary. The country has established laws to promote the growth of the venture capital market. The main aim of venture capital is to provide funding to companies with promising ideas but lacking capital. Hungary is working towards enhancing its venture capital market to support innovative enterprises.