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 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.

scholarly journals Proposing changes in legislative and institutional conditions for private equity and venture capital financing in the Czech Republic – a comparative study with Poland

2011 ◽  
Vol 59 (7) ◽  
pp. 317-324 ◽  
Author(s):  
Jaroslava Rajchlová ◽  
Michaela Baranyková ◽  
Michal Polák ◽  
Zdeněk Brož
Keyword(s):  
Czech Republic ◽  
Venture Capital ◽  
Comparative Study ◽  
Small Businesses ◽  
Private Equity ◽  
Positive Influence ◽  
The Czech Republic ◽  
New Business ◽  
Capital Financing ◽  
The Government

This paper discusses the conditions of private equity and venture capital financing in the Czech Republic and Poland. Especially the related legislation, taxes and support of this type of financing are discussed in detail. The purpose of this research is to evaluate the conditions, to find factors that have positive influence and to formulate recommendations that would improve the conditions for both PE/VC investors and firms with new business ideas. Improving the conditions for PE/VC financing helps small businesses get the needed capital that cannot be obtained from banks and other institutions. This form of financing has a proven positive effect on whole economy. Identifying and removing obstacles is therefore important and helps the government to promote economic growth. This form of financing is used frequently in other European countries. In the central and eastern Europe it is not used as frequently but the situation is improving according to (Zinecker & Rajchlová, 2010). According to the study made by EVCA an array of legislative shortcoming were identified in the Czech Republic. Poland and Hungary have better conditions for PE/VC financing. According to EVCA studies made in 2004 and 2006 Poland shows that the conditions improve each year. Therefore Poland was chosen in this research for a comparative study with 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 VENTURE CAPITAL AND PRIVATE EQUITY INVESTMENT IN THE CZECH REPUBLIC

Business & IT ◽  
2017 ◽  
Vol VII (2) ◽  
pp. 2-9
Author(s):  
Božena Kadeřábková ◽  
Petr Ptáček
Keyword(s):  
Czech Republic ◽  
Venture Capital ◽  
Private Equity ◽  
The Czech Republic ◽  
Equity Investment

scholarly journals Private equity and venture capital: investment fund structures in the Czech Republic

2011 ◽  
Vol 59 (7) ◽  
pp. 541-552 ◽  
Author(s):  
Marek Zinecker
Keyword(s):  
Czech Republic ◽  
Venture Capital ◽  
Capital Investment ◽  
Private Equity ◽  
Negative Impact ◽  
Business Environment ◽  
Investment Fund ◽  
Correct Operation ◽  
The Czech Republic ◽  
Legal Barriers

A working private equity and venture capital market (PE/VC market) stimulates the business environment in a positive manner and impacts the level of economic growth of national economies. A study of the Austrian Private Equity and Venture Capital Organisation/AVCO (2004, p. 6) defines prerequisites for a correct operation of the PE/VC market. It views the legislative provision for suitable legal fund structures for PE/VC investments and their tax treatment as a key factor. In its publication, Private Equity & Venture Capital in the Czech Republic (2010, p. 14), the Czech Venture Capital Association/CVCA stresses that legal barriers are an important reason behind the limited scope of resources available to domestic PE/VC funds. Legal barriers prevent the establishment of a standard PE/VC fund in the territory of the Czech Republic, which fact in turn has a negative impact on the level of development of the domestic PE/VC market (fundraising, investment volumes, establishment of the infrastructure required for the operation of PE/VC funds). The purpose of this article is, based on an analysis of the relevant information sources, to assess how the current Czech legislation regulates the legal fund structures for PE/VC investments and their tax treatment. Proposals for a potential improvement of the situation are based on a comparison of the legislative framework applicable in the Czech Republic and the requirements defined by the European Venture Capital Association/EVCA, as well as the AVCO study (2004, 2006).

INTERNATIONAL GRANT COOPERATION AS A TOOL FOR THE DEVELOPMENT OF PROFESSIONAL COMPETENCIES OF UNIVERSITY TEACHERS

2018 ◽  
pp. 4-8
Author(s):  
Milan Chmura
Keyword(s):  
Higher Education ◽  
Czech Republic ◽  
Professional Education ◽  
European Countries ◽  
International Project ◽  
The Czech Republic ◽  
University Teachers ◽  
Quality Of Higher Education ◽  
Education And Development

The education and development of university teachers have its justifcation and its importance is signifcant not only in the Czech Republic but also abroad. This study provides an analysis of further professional education of university teachers in the Czech Republic and in selected European countries. Subsequently, it presents an international project with participants from the Czech Republic, Ukraine, Slovakia and Poland, which, ultimately, plays a role in the improvement of the quality of higher education.

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