HunBAN Member Code of Conduct
1. Purpose and who it applies to
HunBAN exists to build a trusted community of angel investors with a connection to Hungary, and to help Hungarian-connected startups succeed. That only works if founders can trust what happens to the information they share with us, and if members can trust each other. This Code sets the standards every member agrees to.
It applies to:
- every member of the Association, whether a natural person or an organisation;
- the representative an organisation member appoints, and every team member using a membership seat;
- members of the Board (Elnökség), the Executive Director and HunBAN staff, who are additionally bound by their own duties.
An organisation member is responsible for its representative and team members complying with this Code.
2. Definitions
| Term | Meaning in this Code |
|---|---|
| Member | A member of the Association as defined in the Alapszabály, including its representative and team members using a seat |
| Founder | Anyone who applies to HunBAN with a startup or is introduced to members through HunBAN, and the team behind that startup |
| Startup Information | Everything a founder shares through HunBAN that is not already public: decks, one-pagers, financials, cap tables, technical and product details, customer and partner information, and HunBAN's evaluation notes and investor feedback |
| HunBAN Channels | Every way members receive information through HunBAN: the deal flow platform, Startup Arena and Founder Q&A sessions, investor calls, the Investor Circle group, newsletters and direct introductions by HunBAN staff |
3. General principles of conduct
Members:
- act honestly, fairly and professionally with founders, fellow members, partners, other angel networks and the HunBAN team;
- support founders with their capital, knowledge and networks, in the give-first spirit HunBAN is built on, and treat every founder with respect whether or not they invest;
- invest with a long-term view and do not use HunBAN to pursue short-term speculation at the expense of founders or co-investors;
- invest only funds of lawful and clear origin;
- do not damage the reputation of a founder, a fellow member or the Association, and raise concerns through the channels in Section 10 rather than in public;
- comply with the Alapszabály, this Code, the Association's other internal rules and the resolutions of its bodies.
4. Using and sharing startup information
Founders share their materials with HunBAN trusting that our members will use them in the startup's interest. Forwarding decks and making introductions is how angel investing works; this section sets how members do it.
4.1 Share in the startup's interest. Members may use and pass on Startup Information to evaluate an investment, bring in co-investors, or connect the founder with people who can help. When they share, they put the startup's interests first and act in good faith: they share with people who can genuinely help the startup, and stop if the founder asks them to.
4.2 Information under an NDA. Members never pass on information they received under a non-disclosure or confidentiality agreement signed separately from this Code, whether with the founder or anyone else. That agreement's terms apply in full on top of this Code.
4.3 No competitive use. Members may not use Startup Information to build, fund, advise or help a competing business, or pass it to a portfolio company or employer that competes with the startup.
4.4 No NDAs at the application stage. In line with international practice, members are not expected to sign an NDA to review an application or watch a pitch. A member may agree a narrower NDA directly with a founder in due diligence, and Section 4.2 then applies.
4.5 Member information. Members treat what they learn about each other through HunBAN, such as investment activity, ticket sizes and portfolios, in the same good faith, and do not pass on another member's personal details without their agreement.
5. Dealing with founders
5.1 No fees from founders. HunBAN charges founders nothing at any stage. Members may not ask a founder for a fee, retainer, commission or other payment for introductions, access to HunBAN or the chance to pitch.
5.2 No intermediary deals. Members may not use HunBAN to promote or place a deal in which they or a third party (adviser, broker, freelancer) earn a success fee, sweat equity or similar reward for investors sourced from the HunBAN network. A member acting as a paid adviser to a startup declares this before presenting it.
5.3 Fair dealing. Members give honest feedback, do not mislead founders about their interest or capacity to invest, and do not use their position to push founders into unfair terms.
5.4 Respect for time. Members who ask a founder for a call, materials or a follow-up respond within a reasonable time, including when the answer is no.
5.5 Paid services. A member may offer paid professional services to a startup only if the founder asks, and never as a condition of an investment or an introduction.
6. Investing alongside other members
6.1 Share what matters. When two or more members are looking at or investing in the same startup, they share with each other any material information they learn about the company or its people that a co-investor would reasonably want to know, especially red flags found in due diligence.
6.2 Lead investors. A member who leads or coordinates a round among HunBAN members keeps the others informed, treats them on the same terms unless agreed otherwise, and discloses any personal benefit from the role (for example a board seat, a fee or a different share class).
6.3 Tell HunBAN. Members let HunBAN staff know when they invest in a startup they met through HunBAN, so the Association can keep track of its own operational success.
6.4 Own decision. Each member decides on every investment independently. Sharing information with co-investors does not make any member responsible for another's decision.
7. No unsolicited selling to the network
HunBAN is a community of investors, not a sales channel. Members do not use member lists, the Investor Circle group, events or other HunBAN Channels to offer unsolicited professional services, products or investment products to fellow members or founders. Sharing one's own expertise when asked, or a relevant offer that the HunBAN team has agreed to circulate, is fine.
Members do not use the contact details of other members or founders obtained through HunBAN for their own marketing.
8. Data protection
Startup materials contain personal data about founders and their teams. A member who receives them through HunBAN becomes responsible for that data under the GDPR for their own use of it.
Members therefore:
- use personal data from HunBAN Channels only for the purposes in Section 4.1;
- keep it secure and share it only in line with Section 4;
- delete it once they no longer need it for those purposes;
- share it with people outside the EU/EEA only where the founder has agreed to that;
- tell HunBAN without delay if they lose such data or suspect someone accessed it without authorisation, so HunBAN can meet its own breach notification duties.
HunBAN's own processing is described in the HunBAN Privacy Notice.
9. Investment risk and own responsibility
Angel investing is high risk: most early-stage companies fail, and investments are illiquid for many years. Members acknowledge that:
- HunBAN does not invest, does not give investment advice and does not verify the information founders provide;
- HunBAN's screening and evaluation are a filter for relevance and readiness, not due diligence and not a recommendation;
- every investment decision is the member's own, made at their own risk and after their own due diligence;
- HunBAN, its Board and staff are not liable for any investment a member makes or declines.
Members are encouraged to spread angel investments across several companies and to commit only money they can afford to lose.
10. Reporting breaches and enforcement
10.1 Who can report. Any member, founder, partner or staff member can report a suspected breach of this Code to the President or the Executive Director, in writing (info@hunban.eu or president@hunban.eu). Reports are handled confidentially, and nobody may be disadvantaged for reporting in good faith.
10.2 First step. The President, or the Executive Director on the President's behalf, hears the member concerned and tries to resolve the matter. Where a breach is established, the President calls on the member in writing to stop and to remedy it within a set deadline.
10.3 Expulsion. If the member does not comply, or in the case of a serious or repeated breach, the President starts the expulsion procedure under the Alapszabály. The General Assembly decides by a two-thirds majority of the members present with voting rights, after hearing the member.
10.4 Appeal. The member can appeal within 15 days to the Ethics Committee, which the Board sets up for the case under the Alapszabály. Its decision is final within the Association.
10.5 Interim measure. While a serious breach is being investigated, the Executive Director may pause sending the member new Startup Information.
10.6 Founders informed. If a breach affected a founder, HunBAN tells the founder what action was taken, without disclosing more about the member than necessary.
This Code does not limit anyone's right to go to court or to a supervisory authority.
11. Acceptance and changes
11.1 Adoption. This Code is adopted, and can only be amended, by resolution of the Board (Elnökség). It is the renewed version of the HunBAN Code of Ethics and Conduct of 15 October 2017 and replaces it from the date of adoption.
11.2 New members. Applicants accept this Code in their declaration of admission, as they accept the Alapszabály.
11.3 Existing members. Because this Code renews the 2017 Code that existing members already accepted, they are treated as having accepted it from the date of adoption. They confirm it again when they next renew their membership.
11.4 Organisation members. The representative accepts the Code for the organisation and passes it on to every team member using a seat.
11.5 Publication. The Code is published on hunban.eu, so founders can see the standards members have committed to.
Questions about this document? Write to us at info@hunban.eu.