Annual Report New Hungarian Success Stories

Annual Report

2015 new hungarian success stories The audience of Brain Bar Budapest 2015 at Akvárium Klub New Hungarian Success Stories Dear Friend,

2015 was the busiest year to date in Design Terminal’s history. Our mission is unchanged: to offer hard-working and talented young Hungarians the most extensive and effective support we can to launch their own business and make a global impact.

We launched Central Europe’s very first global knowledge festival. Each year, Brain Bar Budapest will bring the world’s leading thinkers to the Hungarian capital, offering them a platform to debate the disruptive transformations of technology, business, society and creativity. To inspire our young entrepreneurs with cutting-edge knowledge; and to elevate Budapest to her earlier position in the world, rendering her once again a city that shapes trends instead of following them. We are far from alone with these ambitions. This is reflected in the fact that we have also had the chance to host over 400 industry events, educational sessions, conferences and community building meetups aside our own events―all in a single year.

We’ve taken our incubation program to the next level. Businesses turning to us can table of contents now leverage the know-how of 150 world-class mentors from Silicon Valley through Berlin all the way to Budapest in the course of improving their business models, organizational structure, intellectual property protection and brand strategy. Traditions Our Team 8 are the foundation of our work. While most incubators focus solely on information technology, we know that design, technological innovation and social sciences all have Key Numbers 10 strong traditions in Hungary. We select teams from each of these areas. Our reason- ing is that the most exciting businesses of the 21st century are born on the frontiers. Incubation Program 20 We also believe talented individuals from different backgrounds have a lot to learn from one another. Brain Bar Budapest 52

We learn from them too. Our everyday activities offer us deep insight into the challeng- Together with the city 60 es young innovators face―insight it would be a waste to keep from decision makers. Our policy recommendations have been incorporated into EU tendering procedures, Raising Public Awareness 66 higher education policies and into government recommendations on digital economy. Philanthropic Activities 72 As a sign of the community’s trust in Design Terminal, 118 early stage business have applied to the next semester of our incubation program. Our task is to provide these Failures 74 teams with professional support of the highest standard―but what can our country hope to gain? The most competitive and most exciting jobs of our future. New Hun- Transparency 76 garian success stories. Collaborations 78 We look forward to sharing our work with you in 2016 as well, Warmest regards, Impressum 82

Gergely Böszörményi-Nagy Director General of Design Terminal NCCI As CNN commented, it all started with transforming a bus station into Design Terminal. Thankfully, it did not end there. I witnessed unprecedented hard work and never before seen government support proving the skeptics wrong.

• Huffington Post OUR TEAM

Márk Kendernay Dóra Katalin Kovács Zsolt Kovács Regő Lánszki Kitti Mayer

Zoltán Ács Dávid Apáti Tamás Balogh Kata Bánhalmi Csongor Biás Bernadett Miklós Gera Molnár Orsolya Monoki Rozina Musch Anna Nemes-Nagy

Livia Bócz Gabriella Liptay Fanni Borókai Gergely Böszörményi-Nagy Kriszta Csala Petra Paloma Perjés Zsófia Sápi Gergő Sas Dóra Simay Enikő Sütő

Katalin Csatlós Márta Csilics Zsófia Csukonyi Szandra Deutsch Ilona Dubi Dóri Szabó Linda Szabó Samu Szemerey Szilva dr. Szendrei Attila Tomán

Gergely Fáy Alexandra Ferencz Dorka Gál Renáta Galántai Judit Gottfried Éva Tornyászki Gergő Tóth Mária Urbánné Rácz Nóra Vadász Veronika dr. Varga Bajusz

Judit Hagenné Jankovics Katalin Harmati Ágnes Héjja Kata Anna Horváth Máté Kálmán Miklós Vargha Renáta Vaskó Tímea Végh

8 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 9 Highest Educational Qualifications of Design Terminal Team Members Distribution of disciplines within degrees

3,1% 1,6% Medicine Natural Sciences Health Sciences – 1 KEY NUMBERS Environmental Sciences – 2

9,4% Arts Industrial design – 6 Design Terminal Team Members, by Foreign Languages Spoken

English 100%

German 32,7% 9,4% Engineering and Technology French 27,3% Architecture – 4 Civil Engineering – 2 Italian 9,1%

Spanish 3,6%

Other* 18,2%

* Latin, Esperanto, Hebrew, Czech, Slovakian, Russian, Portuguese 59,4% Social sciences 17,2% Business and Economic Science – 17 Law and State Affairs – 4 Liberal Arts Political Science – 5 Media and Communications – 7 Management Sciences and Organizational Ethnography and Cultural Anthropology – 1 Development – 4 Art and Art History – 1 International Affairs – 8 Team Members by Gender Multidisciplinary Liberal Arts – 2

Average Age of the Design Terminal Team 70% 30% Females – 39 Males – 16

31 years

10 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 11 By stimulating creativity and identifying and nurturing young talent, Design Terminal contributes substantially to the improvement of Hungary’s country brand. The development of creative industries also offers benefits in basic and higher education, family and youth policy as well as culture.

• Zoltán Balog – Minister of Human Capacities Our expenses in 2015 Design Terminal’s media quotations in 2015

58,01% Incubation and Industry Ecosystem Development 32% Print 2,19% Incubation – 11,89% Communications activities – 4,23% Training Events – 41,90% and Research Total mentions

3% Television 1470

4% Radio

1,8% Online Organizational 61% Development

9,35% Infrastructure Office rental – 3,06% Utilities – 1,07% Our events in 2015 Office maintenance – 0,91% 28,65% Cleaning services, vehicle permits, postage costs – 0,13% Administrative Common charges – 0,29% 19 Employee salaries – 21,52% 188 Banking costs – 0,04% Cseh Tamás Program events Taxes and social security contributions – 7,12% Supported events Legal advice – 1,36% Internal audit – 0,36% Public procurement consultations – 0,54% Employee health services – 0,01% IT devices and services – 1,57%

Distribution of businesses incubated by Design Terminal, by type of services rendered 169 Own events

Businesses attending local trade Businesses participating fairs and exhibitions in the Consultation Program

2014 330 2014 64

2015 260 2015 70 27 Businesses attending trade Businesses participating Hosted events Total number of visitors in 2015 fairs and exhibitions abroad in the Mentor Program

2014 7 2014 5

2015 43 2015 5 142 625 (in 2014, 99 269 )

14 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 15 Number of events in 403

16 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 17 Internship Program for Talented Roma Students

The Jesuit Roma College and Design Terminal signed a strategic collaboration agreement in 2015, launching a joint internship program for talented Roma youth. The goal is for Roma students of higher education institutions to familiarize themselves with the fields of digital economy, design and urbanism, successful local businesses active in these fields and the career paths these industry branches offer.

Annual Report 2015 – Design Terminal 19 Incubation Program

We expanded Design Terminal’s Incubation Program considerably in 2015. Our goal is unchanged: to promote the international market entry of the most innovative Hungarian businesses, paving the way for the emergence of new Hungarian success stories. As part of our business stimulation services, we offer our partners consultations, mentoring, opportunities to attend local and international trade fairs and exhibitions as well as investor mediation. Our services remain free of charge, subject to a competitive selection process. Our research program offers us a platform to process the empirical observations and experience gained through our collaboration with some 400 business annually, allowing us to utilize the acquired results to further develop the program. For the first time, this year, we haveopened up all services of the incubation program, including consultations and mentoring previously available to design businesses only, to technology startups and project owners focusing on urban development and innovation as well.

feedback and formulate specific recommendations for founders. The businesses are welcome to return for further sessions, and we encourage the most promising participants to apply for our Mentor Program as well. The following businesses participated in our Consultation Program in 2015: 5L / AB Concrete Design / Ágnes Kovács Leather Design / AIAIÉ / AP Faktúra / Az én tortám / Beerides / Balassa Péter / Baráth Gábor / Bayonet Title / Bedtime Bedding / Bertóti Lóránt / Bestrong Kondipark / BodiES / Borobudur Lamps / Budapest Bakering / Budapest Dialog / Buzasi / Czapány Üvegsztori / ConnectSmart.Me / Designrs.co / Do3D / DolfoArt / Dot for you / Edukado / Emberyard / Enabler / Fészek Részek / Foegel Cementlap Műhely / Galla Zoltán / Consultation Program H2o sculptures / Házikó / Hermann Adél / Hunap Studio / Király Kata / Kiss József / Kovács Blanka / Lánylétedre blog / Limeset / Maform / Magikme / mForm / This year, once again, we welcomed numerous early stage creative businesses to par- Miniverzum / Mistory / Mybabyhug / NK Design / Pap Annamária / Paprikum / ticipate in free consultations focusing on business model development, organization Pixrating / Rienne Creations / Rugalmas Tükör / Running Bunny / Sarolta Tripolszky / development, the protection of industrial property rights and marketing communica- Sera Jewellery / Shamo Bags / SheShirt / Simplemente / StartIt / Sté Clothing / tions. During these intense one-hour orientation discussions, our experts―who eval- Tompa László / Transxfilm/ TUTU bags / Üveges Péter / Üvegszilánk / Vargha Éva / uate the market position and strategy of each registered business beforehand―offer Wanderer66 / YKRA / ZHJ / Zsuzsi Tapolcai

20 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 21 MENTORING Program Introducing the Businesses

Our expanded and restructured three-tier (DesignLab, TechLab, CityLab) Mentoring Program stands out even from a global perspective, as it allows the representatives of different creative branches to learn from each other. The international mentor network represents another one of the program’s main strengths. Organized by Design Terminal, one hundred and fifty renowned experts join forces in developing mentored businesses, from Silicon Valley through Berlin all the way to Budapest. During the six-month program, mentored businesses are driven to improve in various areas, including business model, organizational development, legal background and marketing strategy, while also preparing to secure their first investment. Design Terminal―in collaboration with the Hungarian National Trading House―also offers each mentored business the chance to attend at least one significant international trade fair or exhibition. The program is based on a thorough selection process, however, going forward, selected participants receive all services entirely free of charge. In addition, participants may receive a mentee scholarship, allowing them to focus completely on their new business during the program.

The DO3D Innovation professional 3D printer brand was launched in 2011, with Márton Bartos, Tamás Liszkai and Katalin Kauzli making up the founding team. DO3D develops affordable, dependable professional quality 3D printers as well as the related innovative biocompatible material. Their main advantages compared to their competitors a favorable price- The *dori tomcsanyi* contemporary womenswear fashion Design Terminal represented Hungary at Europe’s largest to-value ratio, and a modular, customizable design. The team’s label was launched by Dóri Tomcsányi in 2012. “Effortless event centering around business stimulation. The European goal is to enter the international market within three years. elegance and a bit of arrogance” is how Dóri describes her Accelerator Summit is a platform to share best practices They are also committed to making high-precision 3D printing own label. Dori works with unique prints and color combi- related to business stimulation and to develop participating attractive and available to actors in the education, industry nations, with humor recurring as a key element of her pieces. organizations’ competences and toolkit. Design Terminal’s and health sectors by offering affordable printing services and The countless ways design can play with uniformity represent business stimulation program also received the Hungarian further improving their printers. the label’s main characteristics. Thanks to early interest from Mentor Oscar award in 2015. the international press, news of the new label reached Beijing and Shanghai quite swiftly. Asia and Europe are still the *dori tomcsanyi* label’s most successful target markets―more specifically, China and Switzerland. Further expansion toward the Benelux States and Italy as well as the United States is planned, a step which could mean significant growth for the label. Meanwhile, Dóri is also planning to create a new related brand at home in Hungary.

At Google’s request, Design Terminal director general Gergely Böszörményi-Nagy opened the corporation’s brand new Central European startup hub. From now on, our mentored business will have access to the Warsaw institution’s services as well.

22 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 23 Meeting Design Terminal’s mentors was a great experience. It was very useful: I received validation, constructive criticism, valuable feedback and momentum for the next steps.

• Erika Baglyas – DOT for you The mentoring program helped us identify our market and our target groups, rethink the product design strategy and develop the network necessary for successful sales.

• Péter Toronyi – founder of Paprikum

Studio Nomad, founded in 2011 by architects Bence Pásztor, Soma Pongor and Dávid Tarcali is a design studio and creative collective. Its goal is to showcase the beauty of simplicity in structures and materials. The team is mainly present on the local market with installations and participates in architectur- al projects, while designing unique furniture for international markets. The team’s first pieces of furniture are the items making up the 3LEGS table collection. Following their debut INDUSTRY Reports at Milan Design Week, the furniture collection swiftly gained traction on the international market. In summer 2015, clothing We have been driving venture capital and private investors to open up to creative retailer H&M’s premium brand, the COS international clothing businesses consciously since 2014. Design Terminal has built a strong relationship Paprikum is a top shelf design object for the kitchen, which chain ordered 110 pieces from the 3LEGS collection for 35 of with almost every one of the over twenty capital funds active in Hungary, and has been can be used to create exciting spice blends. The product was its top stores. Consequently, the tables appeared allover the supporting their involvement with creative industry investment reports for an entire year designed by Péter Toronyi in 2012. The spice mill’s steel ball world, from Tokyo to New York City. The team, already enjoy- now. These quarterly reports offer investors qualitative expert analyses as well as up- mechanism is exceptionally efficient and capable of forceful ing international validation, is now ready for further expansion. to-date and authentic metrics on the most promising Hungarian creative businesses, grinding. The tool is easy to use, small and ergonomic, but is, Their goal is to identify or build a retail network in Europe or which can serve as the basis for the identification of new targets for investment and at the same time, capable of grinding a granite pebble into the Unites states. also help speed up negotiations. dust. Paprikum first won a special award at the Hungarian Design Awards in 2012. Appearances at international fairs Design Terminal is also involved as an expert in the work of Széchenyi Capital Funds, were the next step for the team―they first exhibited at the the investment fund most active in the creative industry. Vienna Blickfang design fair in 2013. The brand, now prepared for mass production, targets Scandinavian, Central and West- In 2015, Design Terminal signed a partnership with the Hungarian Venture Capital ern European as well as Russian markets. Association (HVCA) to support the Hungarian angel investor environment. The Angel Investor Club established jointly by the partners aims to promote small-scale investments enabling small enterprises to enter international markets, while also expanding the angel investor community and laying down the foundations for a new knowledge and information sharing culture. The Angel Investor Club will kick off in 2016.

26 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 27 2015 marked our third time organizing the industry expo of one of the most exciting and most rapidly expanding segments of digital economy, an event which has now joined the ranks of Europe’s leading industry showcases. Czech, Greek, Italian, German, Romanian and Spanish businesses and experts joined their Hungarian counterparts, sharing knowledge and their most recent innovations with each other. The industry’s leading international news magazine, 3D Printing Industry reported on-location from the event, dedicating an entire article to the 3D printer developed in Hungary by DO3D Innovation, one of Design Terminal’s mentored businesses. American manufac- turer FromLabs, founded by engineers from the Massachusetts Institute of Technology (MIT), took advantage of the event to announce its plans to relocate the manufacturing of its printers to Székesfehérvár in cooperation with Videoton, employing Hungarian workers. Design Terminal facilitated direct negotiations on subsidies available in relation to the investment Trade Fairs and Exhibitions at home between the company and the Ministry of National Economy. List of exhibitors: In 2015, Design Terminal was once again a key partner and The goal of the local trade fairs and exhibitions organized and supported by Design Shapr3D / Herz Hungária Kft. / Basiliskus 3D Grafikai Stúdió/ sponsor of Budapest Design Week, organized by the Hunga- Terminal is to provide businesses ample opportunity to connect with industry players, Kvint-R Kft. / Blueprint 3D Bt. / CraftUnique Kft. / 3D Printing rian Intellectual Property Office. This year, Central Europe’s retailers and consumers, collect market feedback indispensable for product develop- Zrt. / Do3D / Fillamentum / Magmasys / Vinyl Grafik Studio/ biggest design week encompasses one hundred and fifty ment, build their brand and expand their business network. The growing popularity of Kitchen Budapest / Leonar3Do International Zrt. / Symme3D / separate events organized by a wide range of professio- creative industry achievements and the related increase in media interested together Krak3n 3D / 3Dee Technologies Hungary Kft. / Reality 3D / nal collectives. The majority of Design Terminal’s activities mean that these industry fairs and exhibitions are not only useful to the businesses DigiShaper Kft. / e-Nable / FreeDee Printing Solutions / centered around business stimulation and the themes and themselves, but to Budapest and the whole of Hungary as well. They contribute to Varinex Zrt. / Fablab Budapest / Parametric Art / practice of design as a business, reaching out to an audience the development of the city and country brand and to the positioning of creativity as Gigamax 3D / Adobe / Bitshapes Kft. made up of fledgling entrepreneurs planning to launch their a top Hungarian export product and of Budapest as a regional creative industry hub. own business as well as owners of early stage businesses. Our partner Széchenyi Capital Funds announced its plans to identify new targets for the expansion of its successful creative industry investment portfolio at Design Week Buda- pest, welcoming high growth potential design businesses to apply. Design Terminal will also participate in the selection and preparation of target companies.

28 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 29 Budapest opens up Hungarian market to the world!

• 3Dprintingindustry.com 2015 marked the third time Design Terminal hosted the Central and Southeast European talent search of Singularity University, co-founded by Google, NASA, Nokia and other innovative corporations. The objective of the Global Impact Competition is to identify projects with the potential to positively impact the lives of at least one million people through the application of exponential technologies.

32 Design Terminal – Annual Report 2015 This was the fifth time we organized the Hungarian design profession’s biggest holiday fair, AT Christmas, featuring some one hundred and twenty local designers this year. The fair is special in the sense that designers receive all sales proceeds, without the deduction of any fees or commissions. The fair’s revenue has been increasing steadily since 2011. List of featured labels: ÁERON / Anna Daubner / Romani Design / Imogen Clothing / INQ concept / Je Suis Belle / MEI KAWA / Tamara Toth / Design Terminal’s efforts to promote Hungarian designers The FOUR / Yuuths / POPO / Sandor Lakatos menswear / finally came to fruition in autumn 2015. With our three-year KOMOD / Nebouxii Socks / AGNESKOVACS / Shamo Bags / strategic partnership agreement signed with Mercedes-Benz, ARTISTA / Dora Abodi / Ducsai.Leather.Goods / Sálálá / MAKE Central Europe’s primary industry event was finally estab- Design / Rita Rzsnszk / TASKA/FUZET / Judit Takacs / Jurekka / lished, showcasing the work of designers from six countries Anna Amélie / Dyan / Boldizsár Zsuzsa / DELACIER / EvE by Eva (the Czech Republic, Croatia, Poland, Hungary, Serbia and Remenyi / Future Unnon / Nemesi Anna Jewellery / Slovakia) and incorporating the final of the Gombold újra! Astronauta D458 / JUJJ Jewellery / Rienne Creations / garment design competition, celebrating half a decade of dorivisy / The Mama Kin / Vanda Ferencz / Krisztina Lango success this year. Buyers arriving to the event signed agree- Accessories / Balilla by Lilla Balázs / zsanettkincses / AB ments with four Hungarian brands (aeron, Kele, Nanushka and Concrete Design / Adamlamp / ESZKA / NagyKlaudiadesign / uSE unused) covering the international sales of their collec- Lamoppe / LUMINOSE – the lovely lamp / Macondo textil / tions, appearances in associated retail chains and the brands’ MOHA design / panyizsuzsi / LOGIFACES / Gabor Miklos Szoke / international representation. MBFWCE is considered the most Maacraft – the social workshop / Paprikum – Rázd fel az ízeket! / important fashion week between Berlin and Moscow, and, be- The leading showcase of the graphic design profession came Ecce HOME / Knetik Dóra / Konda Brigi Kerámia / HERTER / side supporting the designers themselves, also contributes to to life, in keeping with tradition, as a product of wide-scale Németh Nóra / lubloy / Monori / Mastro / Moringa / the positioning of Budapest as a regional creative industry hub. collaboration, co-organized by the Society of Hungarian Andrási Edina / Budapest Pattern / Artlocator Magazine / The event, ticket proceeds of which doubled compared to 2014, Graphic Designers and Typographers and Design Terminal. Astronaut / Malinovka / Csodaceruza / DOT for You / Janka has now also been awarded the Europe for Festival, Festivals Book illustrations, comic books and graphic novels were all Arnoczy / Kis Hungarikumhatározók / TATZ / David Barath for Europe (EFFE) label. List of brands appearing at the event: given particular emphasis this year within the program of the Design – The Art of Grill / Urban Sidewalker / Szilasi Gábor / Áeron / ANDA / Ana Ljubinkovic / Domi Grzybek / Dora event, which highlights latest achievements in one of the most Babyberry / Freshka Design / ISSI / Kamorka / pici and the city / Abodi / Dori Tomcsanyi / INQ concept / Jana Gavalcova / popular creative industry branches. Nyúlgyár / Kivibag / Acantus Design / CUCC papírzsákok / Je Suis Belle / Kata Szegedi / KELE clothing / KOMOD / Kuvik / Hosszúlépés. Járunk? / Hello Wood / Művészetek Völgye / Konsanszky / LBL / Nanushka / Napsvgar / Nora Sarman / ArtiStamp / Plié by Atelier / Zebramade / Studio Nomad / November / Nubu / ODIVI / The FOUR / USE unused / Fabrika / Az én Tortám / Kortárs Építészeti Központ – C10 Zsigmond Dora menswear / Anh Tuan / Visy Dóri / Reka Vago / Hajduanett leather goods / KELE clothing / Anna Amelie

34 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 35 We are proud to sponsor the Mercedes-Benz Fashion Week Central Europe event series, which we consider particularly important, a fashion forum of regional significance.

• Ingo Fröhlich – CEO of Mercedes-Benz Hungary Trade Fairs and Exhibitions Abroad This year, thanks to Design Terminal, Hungary appeared for the first time at the United States’ biggest creative industry This year, we once again showcased the most promising Hungarian creative industry festival. The fair featuring the definitive faces of the digital businesses at numerous international trade fairs and exhibitions. In keeping with our economy as well as the music and film industry―with some new system, launched in 2015, we provide each and every one of our mentored busi- 30.000 industry players, entrepreneurs, business decision nesses the chance to attend at least one international forum providing access to the makers, media outlets and thought leaders in attendance markets and target groups vital to them, while we’re also in constant search of oppor- each year―showcased five innovative Hungarian business- tunities allowing Hungary to take the spotlight as guest of honor at the world’s leading es, selected by Design Terminal via a competitive procedure. industry events. In these latter cases, while prioritizing our mentored businesses to 50 startups applied, whose applications were evaluated by some extent, we ultimately select participating business through public procedures, Veronika Pistyur, CEO of Bridge Budapest, Adam Somlai- This year, co-organized by the HU+ Collective comprised of involving an independent expert jury panel. Fischer, co-founder of Prezi and Gyula Fehér, co-founder and Hungarian designers and Design Terminal, Hungary was Guest CTO of Ustream. Aside introducing these local businesses to of Honor at one of London’s leading design fairs. This oppor- the broader industry, Design Terminal also organized a panel tunity afforded eight Hungarian design businesses the chance Thank you Design Terminal for your support. discussion promoting Budapest as an attractive development to showcase their products to top buyers and retailers. hub with the potential to offer US firms countless advantages, List of participating labels: Our startup has made more progress these few as well as a networking night drawing some 400 visitors. Maacraft / Lamoppe / Logifaces / vidonori / Medence days, than during the past couple of months. List of showcased businesses: Csoport / Absoloot / Studio Nomad / Paprikum / Bigo / Brewie / Synetiq / Vidzor / Notch / Sbrick. Minya Viktória / Rienne Creations / Hannabi / Plié by Atelier We couldn’t have done it without you.

• Sbrick

38 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 39 With Design Terminal’s support, we got to attend Pulse London and the Milan Design Week. Our mentors helped us a lot in making our on-location communication as effective as possible and also gave us insight beforehand into what the audiences are really interested in.

• Dávid Tarcali – Studio Nomad We participated, for the second time, at the leading Middle Eastern design fair and exhibition. This year, one of our mentored businesses, Position Collective had the chance to show- As the result of a collaborative effort between the Balassi case its products as part of the Design Days Dubai event pro- Institute, Hungarian Tourism Plc. and Design Terminal, Hun- gram. Thanks to this appearance, the Middle East has now gary was the 2015 Guest of Honor at New York City’s most become one of the brand’s most important markets. dynamically growing festival of culture and innovation. As part of the program, organized by Design Terminal, eight Hungarian startups were offered the chance to enter the spotlight at Northside Innovation’s trade fair and investment forum. List of showcased businesses: Tep / AeroGlass / PublishDrive / Shapr3d / MosaicLights / UniBreeze / Funspotter / MIXY

As part of the Hungarian program of the 2015 Milan Expo, Design Terminal organized for five local design businesses enter to the spotlight at the HOMI Milano trade fair. List of showcased businesses: Studio Nomad / AB Concrete / Blum and Wolf / Paprikum / Zebramade

Five Hungarian startups and Design Terminal’s incubation pro- One of our mentored businesses, open-air sports equipment gram entered the spotlight this year in Tallinn at Latitude 59, producer Hard Body Hang―growing dynamically in terms of a top industry fair organized in Estonia, the nation boasting both Hungarian and Western European, public and private the region’s most developed digital economy. clients―debuted for the first time at an international trade List of showcased businesses: fair, organized by Design Terminal. Codie / Aeroglass / sBrick / Notch

42 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 43 This is an amazing experiment, bringing users, designers, social scientists and architects together. My team was very smart, and incredibly enthusiastic to find solutions for senios’ problems. We ended up creating a scheme radically restructuring the current retirement system together.

• Irina Lopez – HOLIS Team Leader

Research and Training

Design Terminal’s research and training activities are an indispensable part of our Incubation Program. The objective of our research is to use comparative international analyses to explore and evaluate policy instruments stimulating creative industry, and to aggregate our insights and experiences gained through our work with our supported businesses to further develop the Incubation Program. In our exploratory studies undertaken in 2015, we compared sector policies related to creative industry across the countries of the CEE region, examined the dynamically evolving interrelations of venture capital and creative enterprises and evaluated the insights of the first of year of Design Terminal’s Incubation Program in exhaustive detail. Our analyses are publicly available and accessible free of charge. The most important element of our training activities is the HOLIS summer university, founded in 2014. At the camp, participating students form diverse teams and apply a holistic design approach and the tools of design thinking to map out alternative solutions to specific issues impacting the community. In 2015, the main theme of HOLIS centered around the challenges of ensuring the social and physical mobility of the 60+ age group. The summer university, which became completely international this year, was held at Ajka-Csingervölgy, involving Ajka Kristály and the Herend Porcelain Man- ufactory as leading local employers as well as local senior’s associations. The HOLIS camp hosted British, Hungarian, Polish, German and Slovakian students as well as British, Dutch, Hungarian, German and Slovakian experts acting as team leaders.

44 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 45 At the 2015 HOLIS summer university, the teams of five created Game Center is a game designed for young adults and seniors a total of six design concepts: which builds relationships across generations, helps develop new habits and circles of trust while also building communities. Unlock is a service that helps make the process of retirement The game helps retirees remain active and motivated, while more straightforward and natural. Instead of a single drastic also preparing those still working actively for old age. shift, work hours decrease in the course of a 10-15 year process. During this time, a mediator helps seniors find new interests The Lecsó / Let’s Show project idea focuses on evaluating Free Infrastructure and activities while also mentoring the younger generation. and documenting the real needs and desires of less active retirees and seniors. Data collected this way can later be used as Since 2012, as part of our incubation services, we’ve been providing a free venue for Be My Shadow is an online platform and connected service. a foundation for the future development of products or services events which aim to foster community building, self-training, and the sharing of infor- It focuses on life situations when the user is preparing for a which offer viable solutions for existing problems. mation and knowledge among innovative businesses. Our event spaces, renovated in substantial change, be that career or lifestyle related. Be My 2013 (a conference room, events pavilion and rooftop terrace) hosted a record number Shadow is a community that prepares its members for a bal- Uncovered Beauty is a platform that uses the tools of art of community gatherings this year, proving Design Terminal is still one of Budapest’s anced retirement. to draw widespread attention to the importance of old-age most popular events venues. Since autumn 2015, our conference bears the name of relationship problems. The project centers around maintaining Péter B. Záboji, founder of the European Entrepreneurship Foundation, professor at Vintage is a service that provides people above the age of 60 seniors’ mental and physical balance, allowing them to enter INSEAD, recipient of the Knight Cross of the Order of Merit of Hungary, and esteemed the opportunity to sell vintage products along with their unique the next phase of their life, retirement, well prepared. investor and mentor of countless local enterprises. stories. An interest in authentic vintage and storytelling is what unites potential buyers from all generations.

46 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 47 Our unique initiative targets girls primarily, with the objective of opening their eyes to the wealth of opportunities awaiting them in technology.

• Szilvia Koleszár – Founder of the Skool education program On the request of the National Cultural Fund (NKA), Design Terminal established the Cseh Tamás Program Office, headquarters of the most extensive state effort to support popular music since the regime change, the Cseh Tamás Program. In a single year, the program utilized its financial and mentoring base to support 72 new bands in creating their first album and music video, and organizing their first concert tour and related press activities. Coordinated by the Program Office, a study involving nearly 10 000 participants was compiled examining the state and challenges of the popular music scene outside of the capital. A workshop series was also launched to familiarize fledgling experts with the best practices of music management. Bands participating in the program were offered opportunities to perform at Sziget Festival, Strand Festival, the Valley of the Arts and EFOTT as well.

Annual Report 2015 – Design Terminal 51 brain bar budapest

2015 marks the birth of Hungary’s global technology festival. Brain Bar Budapest is a special addition to the international events calendar in terms of both format and content. It focuses on the relationship between humankind and technology, Western civilization and the new industrial revolution. The program features nearly one hundred renowned speakers including global celebrities debating their visions for the trans- formation of the economy and society itself. Among many others, Richard Florida, the best known theorist of the creative economy, world-renowned educational researcher Sugata Mitra, Stanford psychology professor Philip Zimbardo, and Tina Saaby, Chief City Architect of Copenhagen, named the world’s most livable city all traveled to Hun- gary for the first festival, which also featured a talk by Harvard and Oxford economic historian Niall Ferguson.

Bertalan Meskó – Medical Futurist

52 Design Terminal – Annual Report 2015 We are missing Budapest and telling everyone we know how wonderful the city is and how terrific Brain Bar was.

• Richard Florida – New York Times best-selling author Brain Bar Budapest serves to accomplish multiple community goals at once. With it, Budapest, Hungary, and thus Central Europe gains an event truly global in its ambitions I truly loved the event, the thinking behind it, the vision, and standards and competitive even on the international playing field of future-focused the team and the audience. I was impressed with my fellow conferences and festivals. It reinforces Budapest’s reputation among invited speakers as well as the policymakers and thought leaders visiting the city to attend the event. speakers, the level of the conversations and the organization The festival offers its Hungarian audience the chance to delve deeper into global trends, behind the scene. It was truly a pleasure and an honor gain new knowledge and insight and expand their international network. The first Brain Bar Budapest ultimately welcomed a total of some three thousand guests. We provided to attend the first BBB! the students, teachers and lecturers making up a core part of our audience free entry. The founding of Brain Bar Budapest is a result of a collaborative effort. Its founders are • Mark Vernooij – THNK School of Creative Leadership Design Terminal, WeLoveBudapest, Akvarium Klub and HG Media. The first festival’s main sponsor was Magyar Telekom, its media partners Financial Times, POLITICO and Forbes Magazine. Articles reporting on the event―streamed online from 30 countries― appeared on various platforms of leading international media brands, and it also became one of the events most often mentioned by European users of social media site Twitter.

Ken Goldberg, Slomó Köves – head rabbi, EMIH; Steve Fuller – professor, University of Warwick

András Lánczi – Director of Századvég Foundation

Congratulations on a spectacularly successful and stimulating BBB event this year. It was such a pleasure to work with you and your energetic and skillful staff.

• Ken Goldberg – robotics expert and professor at UC Berkeley

56 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 57 Brain Bar Budapest competes with any worldwide conference!

• Karin Meyer Rubinstein – head of the Israel Advanced Technology Industry Association (IATI) Together with the city

While by today, opportunities to use the European Union’s development funds in Buda- pest and the surrounding area have become very limited, nearly 90% of the businesses making up the Hungarian creative industry segment growing at five times the rate of GDP are still active in the region of Central Hungary. Their performance is outstand- ing even in international comparison: according to a study by the Swedish Center for Strategy and Competitiveness, Budapest and its surroundings represent Europe’s most dynamically expanding creative industry region. In 2014, Design Terminal and the Municipal Government of Budapest signed a strategic collaboration agreement in order to create a stimulating economic and cultural environment for these businesses and to position Budapest as a Central European creative industry hub. This year, we took part in the compilation of the capital’s economic development strategy as well as in organizing and evaluating design tenders announced by the Municipality. Budapest City Image Nonprofit Ltd. was established, becoming an operative partner of our institution in various areas of our collaboration with the capital, from providing infrastructure for our mentored businesses through the announcement of specific competitions and tenders to philanthropic activities.

In 2015, the Local Government of Belváros-Lipótváros awarded Design Terminal the City of the Future prize.

Smart City Lab Budapest

Design Terminal announced its smarty city competition for the second time in 2015. The main theme was the personalized, communicating city and the responsibility citizens feel for their surroundings. We hoped to receive development concepts with the potential to improve urban life quality, and which serve to create a link between the built environment and the systems operating within it, including digital urban solutions. The expert jury panel selected three winners: FUTI in the clean city category, Nagyiapp in the senior city category and Route4U in the small data category. From 2016, with the Citylab program and its expanded content and resources, Design Terminal will support innovative initiatives in the field of urban development more extensively than ever before.

Szalay-Bobrovniczky Alexandra – Deputy Mayor of Budapest for Cultural Affairs

60 Design Terminal – Annual Report 2015 FUTI is an innovative pavement solution which produces energy from sunlight, the difference between surface and air temperatures and citizens’ steps. Twelve square feet of pavement is enough to provide for the annual energy needs of an entire household. The prototype was developed in 2015, with funding and support from the competition. Testing in pub- Design Terminal is a strategic partner of the Liget Budapest lic spaces will take place during 2016 at various locations in project. The goal of our collaboration is to ensure that the rep- Budapest. FUTI will enter the international market as a Buda- resentatives of the Hungarian creative industry also get the pest innovation and is one of the potential Hungarian success chance to showcase their knowledge and solutions as part of stories of the future. the museum development project unprecedented in scale even in European comparison. Design Terminal organizes thematic competitions related to the project in the fields of branding design and urban planning. We are also taking part in the compilation of the program of the Liget Budapest Visitor’s Center to be established in summer 2016.

At the request of the Centre for Major Investments (KKBK), Design Terminal is participating in the preparation of Buda- Route4U is an application that helps people with limited NagyiApp is a service which supports raising the activity pest’s bid for the right to host the 2024 Summer Olympic mobility get around. It collects data via smart phone sensors levels of the older generation, which was created using funds Games. The city’s innovation ecosystem, the support of cre- as it is used by participating wheelchair users, those traveling and support secured through the competition. NagyiApp ative industries and their contribution to Budapest’s develop- with strollers and cyclists. The application consists of a map aggregates the knowledge collected by elderly people ment play an important role in the Hungarian bid. In the course containing accessibility information and a route planner. throughout their lifetimes on a visible, accessible platform. of this collaboration with the KKBK, Design Terminal is re- Constantly refreshed information allows for real time routing The service could help bring back long-forgotten technolo- sponsible for involving top representatives of the local creative and monitoring the state of infrastructure. The app’s routing gies and techniques, and also helps seniors remain active. industry (particularly design branches and digital economy), function was developed thanks to the support the team re- NagyiApp also offers users a self-organizing community, inviting these individuals to join certain subtasks and for the ceived through the competition. events and a digital platform. organization of certain thematic tenders and competitions.

62 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 63 Furnish Your City!

FŐKERT, Hello Wood and Design Terminal announced an industrial design competition to solve urban architecture issues impacting the capital’s parks and public spaces. The competition’s objective was to support the creation of designs for street furniture and waste containers which meet modern urban expectations and can sustain the stress of increasing use, as well as the implementation of winning submissions. The expert jury panel evaluated the three hundred submissions received, naming winners in three categories: high school, university and professional. Along with audience favorites, the prototypes of a total of ten different kinds of street furniture were ultimately built in summer 2015. The street furniture was exhibited at Margaret Island, allowing passersby and the public to test each variant.

Annual Report 2015 – Design Terminal 65 RAISING PUBLIC AWARENESS

This was our first time participating at one of Europe’s biggest festival’s with our own dedicated event venue. In our spectacular program space, created with the help of our partner Hello Wood, we offered visitors the chance to get to know our mentored businesses, hosted a startup competition and showcased some of the most promising young Hungarian fashion designers. Young Entrepreneur’s Week, organized as part of the international Global Entrepreneurship Week movement, is one of the top Hungarian business stimulation event series. Talks organized in collaboration by Design Terminal and the National Association of Young Entrepreneurs featured acknowledged successful entrepreneurs. We showcased the most successful participants of our mentor program to date, and offered visitors the unprecedented option to participate in business consultations on location at the event.

2015 marked the second time Design Terminal’s dedicated venue was constructed in central Kapolcs, at the one of In 2015, we joined one of the leading local forums of informa- the nation’s most popular festivals of culture. In the Design tion society as co-organizers. At the INFOTÉR Conference, we Terminal Courtyard, beside a variety of in-depth discussions used our dedicated program venue to offer opinion leaders of and concerts, visitors also had the opportunity to pick and the local startup ecosystem and sector policy a platform for choose from the products of nearly 100 Hungarian design debate, while also introducing municipal decision makers to businesses―designers’ proceeds from sales grew by 60% this the most promising Hungarian smart city businesses. year compared to 2014.

66 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 67 Design Terminal’s courtyard was once again the place to go for the most colorful events. We’re very happy to have been able to host our best summer house party here for two years now.

• Dániel “Eckü” Baranyai – Hősök In 2015, beside Budapest, Design Week was organized in Transylvania’s Sepsiszentgyörgy as well. The main themes The MENTA conference organized by the ICT Association of were tradition and innovation, and the relevance of creating Hungary offers corporate executives a glimpse into the digital future-focused links between traditions and contemporary industrial revolution. Design Terminal took part at the confer- design. The event also included a competition for young ence held for an audience of 400 guests with a presentation designers offering professional support. One applicant was on smart cities, technology and innovation. awarded Design Terminal’s special prize, which offers the win- ner multiple free consultation sessions with our expert team.

The Hungarian Embassy in Vienna organized an urbanism exhibition on the eve of one of Europe’s top tech festivals with The objective of the Visegrad International Youth Conference is ARTplacc, supported by Design Terminal, is the Balaton’s Design Terminal was among those invited to take part in the expert support from Design Terminal. The objective was to to strengthen the bonds between the Visegrad four, promoting biggest contemporary art and design festival. Visitors got event co-organized by the Joint Venture Association and showcase Hungarian creative-innovative urban development cooperation and collaboration. The conference’s main themes the chance to connect with successful local businesses and AmCham focusing on startup and corporate systems. The head projects implemented in the past year with support from were the European Union, the region’s competitiveness, youth get to know the latest Hungarian success stories. The 2015 of our mentor program gave a talk on startup systems and Design Terminal. The event, featuring twenty-five businesses policy, the challenges of security policy and the protection of event featured a roundtable where our mentored businesses Design Terminal’s considerable efforts to further develop the on-location at the Vienna Embassy, attracted some two hun- minorities. Hungary was represented by Design Terminal at answered visitors’ questions. local ecosystem. dred visitors. the Cluj forum.

70 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 71 Philanthropic Activities

In 2015, we reinforced our now two year old strategic partnership with Hungarian Inter- church Aid (HIA). During the organization’s Give and Take Days in April-May, members of the Design Terminal team collected high quality, clean used clothes and accessories, which HIA then passed on to temporary homes, safehouses, family aid centers and homeless shelters. We pledged all proceeds from October’s Mercedes-Benz Fashion Week Central Europe to helping underprivileged children supported by HIA. The Design Terminal team once again volunteered at the organization’s “szeretet.éhség” donation drive and fundraising effort, and HIA again received all proceeds from our now traditi- onal charity design auction. Revisiting our highly successful 2014 collaboration, Hello Wood, the Budapest Municipality, HIA and Design Terminal once again erected a charity tree in downtown Budapest promoting donations and fundraising.

72 Design Terminal – Annual Report 2015 Failures

In several cases, we only completed payment for services rendered by our subcontrac- tors following the receipt of the invoice and confirmation of completion with significant delay. Late payment is a practice with potential to undermine a contractual partner’s trust in the institution as well as in the public sector in general, and thus, it is essential that we improve substantially in this respect in 2016―adjusting our internal guidelines and work processes, if necessary.

74 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 75 Transparency

Providing complete transparency during the course of all of our activities was an important goal for Design Terminal in 2015 as well. After involving external experts in 2014 to develop an online platform unique in its simplicity within in the field of public administration, offering journalists and citizens easy and fast access, this year, we began cooperating closely with the State Audit Office. The goal of our partnership is for us to be among the first to implement the State Audit Office’s management and transparency recommendations compiled for institutions of the central budget, and to develop transferable best practices for other public sector institutions.

76 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 77 Maintaining institutions Philanthropic partner

Collaborations

Sponsor partnerships in 2015

Strategic Partnerships

MAGYAR NEMZETI VAGYONKEZELO ZRT. MAGYAR SZELLEMI TULAJDON MNV ÜGYNÖKSÉG NONPROFIT KFT.

Professional Partnerships in 2015

Media partners in 2015 CORVINUS KOCKÁZATI TŐKEALAPKEZELŐ ZRT.

78 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 79 belváros A jövő V.árosa

belváros A jövő V.

SINGULARITY UNIVERSITY

80 Design Terminal – Annual Report 2015 Annual Report 2015 – Design Terminal 81 IMPRESSUM

Responsible publisher: Design Terminal NCCI 1051 Budapest, Erzsébet tér 11.

Photos: Máté Bartha, Gábor Czerkl, János Fejér, Attila Gasparetz, Endre Holecz, HU+ Collective, Lisa Hause, Lilla Liszkay, Krisztián Maráczi, Nikolett Penziás, Géza Talabér, Miklós Vargha

www.designterminal.hu [email protected] facebook.com/designterminal

82 Design Terminal – Annual Report 2015