Venture capital and growth capital investments in the Czech Republic

2019 ◽  
Keyword(s):  
Czech Republic ◽  
Venture Capital ◽  
Capital Investments ◽  
The Czech Republic

scholarly journals Benchmarking study on the venture capital market in the Czech Republic, Hungary and the Netherlands

2016 ◽  
Vol 13 (3) ◽  
pp. 191-202 ◽  
Author(s):  
Ing. Jaroslava Rajchlová ◽  
Ing. Veronika Svatoaová
Keyword(s):  
European Union ◽  
Cluster Analysis ◽  
Czech Republic ◽  
The Netherlands ◽  
Venture Capital ◽  
Capital Market ◽  
The European Union ◽  
The Czech Republic ◽  
Eu Countries ◽  
Capital Financing

The main aim of paper is seen at two levels: the first level to assess the situation on the venture capital market in the Czech Republic based on the results of a comparative study of selected countries of European Union is the area of venture capital financing. The second level is, then, to propose measures, whose implications could increase the effectiveness of venture capital to the business sector in the Czech Republic. The main purpose of the paper is to identify internally homogeneous groups of the EU states regarding the situation on the venture capital market in the European Union Member States. The aim of this article is supported by relevant statistical data for the period 2008-2013 to assess the legislative framework of venture capital market in the Czech Republic and other selected European countries. Based on the results of cluster analysis, EU countries were identified, Hungary and the Netherlands, in which legislative conditions with venture capital market were subsequently analyzed and the results were compared with the situation in the Czech Republic. The Netherlands as a representative of the countries with developed market risk capital, Hungary as a representative of CEE countries. The problem of undeveloped VC market in the Czech Republic is not in demand for venture capital, but in its supply. Pension funds and insurance companies cannot invest more than 5% in risky assets. In the Czech Republic, there are no tax incentives to attract investors and even government programs that could complement the missing investors and support the creation of venture capital funds. This low level of venture capital usage for the development of enterprises could also be seen in misunderstanding and ignorance of this form of financing, the inability of management to prepare a business plan and to attract a potential investor, fears of administrative burdens arising from an investor and finally questionable return on investment when, for example, public offering of shares, which achieves a high appreciation, is in the Czech Republic underused. Keywords: venture capital, benchmarking, cluster analysis, Ward’s method, CEE countries, EU countries, Czech Republic, Hungary, Netherlands. JEL Classification: G32, M21

scholarly journals Private equity and venture capital financing in the Czech Republic and other european countries – development, opportunities and limitations

2011 ◽  
Vol 59 (7) ◽  
pp. 307-316
Author(s):  
Jaroslava Rajchlová ◽  
Zdeněk Brož ◽  
Michaela Baranyková ◽  
Michal Polák
Keyword(s):  
Czech Republic ◽  
Venture Capital ◽  
Private Equity ◽  
Positive Impact ◽  
Time Frame ◽  
European Countries ◽  
The Czech Republic ◽  
Business Plans ◽  
Low Level ◽  
Capital Financing

Financing by means of private equity and venture capital (PE/VC) offers businesses the resources required to finance their future growth and bring prospective business plans and innovative ideas to reality. This form of financing is relatively new and even though it offers clear advantages it is not frequently used in the Czech Republic and other European countries in the CEE region. This paper addresses current and very relevant issues related to this form of financing. The purpose of this research is to identify opportunities and limitations for this type of financing based on benchmarking analysis. This analysis observes the development of PE/VC financing in the Czech Republic and compares it with several other countries in the CEE region. This paper discusses several factors that influence the development of PE/VC financing. Several conclusions can be drawn from this research. The Czech Republic is in 10th place in the utilization of venture capital from the selected 22 countries covered in this research. The time frame for this research is between 2004 and 2010. After thorough analysis of development and conditions in other countries a list of recommended changes that have proven positive impact on the whole economy is formulated. The relatively low level of utilization of the venture capital in the Czech Republic may be due to several things for example by a lack of knowledge of this form of financing and the inability of the management to formulate a business plan that is interesting for the PE/VC investor. The managers are often afraid of the administrative complexity and also the investor expects relatively high profitability of the investment. Another possible limitation is that the public issuing of stocks is used rarely in the Czech Republic. Another cause for the low level of utilization is the absence of public and institutional support for this form of financing. Venture capital has clear and measurable positive impacts on the whole economy and it is therefore important to support and research the use of this method of financing.

scholarly journals Development of number of employees in the Czech companies with venture capital investment

2012 ◽  
Vol 60 (7) ◽  
pp. 61-70 ◽  
Author(s):  
Anna Fedorová ◽  
Jaroslava Rajchlová
Keyword(s):  
Czech Republic ◽  
Venture Capital ◽  
Capital Investment ◽  
Quantitative Research ◽  
Positive Influence ◽  
Primary Objective ◽  
The Czech Republic ◽  
Venture Capital Investment ◽  
One Year ◽  
The Individual

According to Schefzyk (2006), creating of new job opportunities in companies financed by venture capital ranks among the most considerable economic impacts of venture capital on companies and national economy. Such obvious conclusions can not be identified in other foreign studies; therefore, a piece of research was undertaken with the aim to prove whether venture capital – in the conditions of the Czech Republic – contributed to any growth of number of employees in the companies with its participation. Partial objectives in two levels were formulated to accomplish primary objective: the first partial objective was the identification and evaluation of development of number of employees in the individual companies funded by venture capital, namely in the period of one year prior to its entry, in the period of co-existence and in the period of maximally three years following the venture capital investment exit out of such companies. The second partial objective was represented by the comparison of development of number of employees in the companies with venture capital with development of employment rate in the Czech Republic. Collected research material comes out from the data of all business subjects financed by venture capital in the Czech Republic in the period from 1998 until 2011. Quantitative research method and subsequent logical inductions were employed to reach established research primary objective. On the basis of collected data on annual average converted number of employees in the companies per individual years their chain indices, subsequently assessed, were calculated.In the research conclusions the authors observe that the statement on positive influence of venture capital on the employment growth in the companies with its participation can not be confirmed in the conditions of the Czech Republic.

scholarly journals The Financial State of Local Communities: A Comparative Research of Ukraine and the Czech Republic

2021 ◽  
Vol 35 (1) ◽  
pp. 165-173
Author(s):  
Dmytro Kozlov ◽  
Yuriy Derev’yanko ◽  
Vladyslav Piven ◽  
Leonid Melnyk ◽  
Oleksandr Kubatko
Keyword(s):  
Czech Republic ◽  
Local Governance ◽  
Local Communities ◽  
Financial Resources ◽  
Capital Expenditures ◽  
Capital Investments ◽  
Capital Projects ◽  
The Czech Republic ◽  
Per Capita ◽  
Administrative Expenditures

Abstract The article describes the specific details of local communities functioning in Ukraine and the Czech Republic. It has been examined that Ukraine and the Czech Republic have similar, but not identical systems of local governance. We conducted a comparative analysis of the financial state of local communities in both countries by five indicators. Indicator 1 (total income per capita) characterises the community’s financial potential and reveals that Ukraine’s local communities have fewer financial resources to use. Indicator 2 (total expenditures per capita) describes the ability to provide residents with the resources generated in their community and Czech communities have a higher value of this indicator. Indicator 3 (share of the administrative expenditures) shows the effectiveness of money spent, and local communities in both Ukraine and the Czech Republic spend particularly the same part of their total expenditures on administrative needs. Indicator 4 (capital expenditures per capita) demonstrate how the money generated is spent on urgent capital investments and Ukraine’s communities have much lower capital expenditures per capita than Czech ones. Indicator 5 (the share of capital expenditures in total expenditures) reflects how local communities perceive the importance of investments in capital projects and Ukraine’s communities spend fewer financial resources for capital needs than Czech ones.

scholarly journals Private equity and venture capitalists' investment criteria in the Czech Republic

2010 ◽  
Vol 58 (6) ◽  
pp. 641-652 ◽  
Author(s):  
Marek Zinecker ◽  
Jaroslava Rajchlová
Keyword(s):  
Czech Republic ◽  
Venture Capital ◽  
Financial Management ◽  
Private Equity ◽  
Investment Decision ◽  
Practical Experience ◽  
Average Weight ◽  
The Czech Republic ◽  
Capital Financing

For investment decision making to be rational, the existence of investment criteria is required. In the theory of financial management, the effectiveness of investment is traditionally judged by the degree to which an investment proposal contributes to achieving the main financial goal of business, i.e. market value maximization of the firm.So far, potential businesses for Private Equity and Venture Capital financing in the Czech Republic have not had information regarding investment criteria and their significance, when considered by investors, at their disposal, which is due to absence of relevant research results.This article presents results of the research project whose aim is to establish which criteria are considered to perform an essential role in the selection of business proposals by firms investing Private Equity and Venture Capital in the Czech Republic as well as the most common reasons for rejecting the proposals. Based on practical experience of financing by Private Equity and Venture Capital, the research made it possible to identify the most significant criteria, namely characterization of mana­gement, market, product and the rate of investment capital appreciation. The results of the research are consequently compared with findings which were published in similar studies undertaken in the past (e.g. Tyebjee, Bruno, 1984; Fried, Hisrich, 1994; MacMillan et al., 1985, 1987; Muzyka et al., 1996; Eisele, 2002).The research supports the thesis that, when considering business proposals, above-average weight is attached to criteria concerning the characterization of management, i.e. experience and competencies in all stages of business life cycle. Nevertheless, the fulfilment of the criteria is not sufficient for investors to evaluate a business proposal positively. They also place an emphasis on selected criteria related to market and product. By publishing empirical data, an important signal regarding up-to-date evaluative criteria and their weight is sent to those interested in financing by means of Private Equity/Venture Capital as well as investors in Private Equity and Venture Capital funds and to investment companies.

Sign in / Sign up

Export Citation Format

Share Document