Current Issues Affecting Venture Capital and Private Equity Funds

2005 ◽  
Vol 2005 (2) ◽  
pp. 26-32
Author(s):  
Michael Collins
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Equity Funds ◽  
Private Equity Funds

A Survey on Enterprise Opportunities and Analysis of Technological Startups and Valuation

2020 ◽  
pp. 84-91
Author(s):  
Anandakumar Haldorai ◽  
Arulmurugan Ramu
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Darwinian Selection ◽  
Know How ◽  
Investment Value ◽  
Finance Development ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Traditional Approaches ◽  
Start Ups

Enterprise technological start-ups represent the newly created firms with the possibility to rapidly develop and assume liquidity in the next few decades. The main purpose of this mode of expansion is to enhance finance development over considerably limited collateralizable fiscal assets. However, this is considered unattractive from the ancient banking corporations which have now been replaced by more sophisticated and specialized intermediaries such as the private equity funds or the venture capital that diversify business portfolios in reference to their strategies on multi-annual exit with firm projected increment in investment value that endured the Darwinian selection. In that regard, this paper conducts evaluation of firms and reviews their technological start-ups following traditional approaches, flanked based on certain elements derived from multiple-exit methods and varied probabilistic scenarios. The technological footprints showcase the evaluation analogies with know-how, intangibles and patents that are connected to certain sectors.

scholarly journals Venture Capital and Private Equity Investment Strategies in Selected European Countries

e-Finanse ◽  
2015 ◽  
Vol 11 (4) ◽  
pp. 34-45
Author(s):  
Krzysztof Dziekoński ◽  
Sławomir Ignatiuk
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Research Question ◽  
High Growth ◽  
Equity Capital ◽  
Growth Potential ◽  
Investment Strategies ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Entrepreneurial Activities

Abstract Private equity and venture capital (PE/VC) funding is the provision of equity capital by financial investors to non-quoted companies with high growth potential. It has a particular emphasis on entrepreneurial activities rather than on mature businesses. PE/VC investors differ on several dimensions including: investment targets, screening evaluation methods, governance mechanisms, and objectives. The paper is a continuation of the discussion that concerns investment strategies of PE/VC funds. While studying the PE/VC market it is important to analyze the origin and structure of capital. The authors assumed that different types of investors have different investment strategies. Our research is an attempt to answer the following research question: whether the investor type, on the European PE/VC market, has an impact on the selection of industries. The paper presents results of statistical analysis of venture capital and private equity funds investment strategies in selected countries.

scholarly journals Venture Capital and Private Equity Investment Preferences in Selected Countries

e-Finanse ◽  
2015 ◽  
Vol 11 (3) ◽  
pp. 128-137
Author(s):  
Krzystof Dziekoński ◽  
Sławomir Ignatiuc
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Private Equity ◽  
New Technology ◽  
Investment Strategies ◽  
Equity Investment ◽  
Equity Funds ◽  
Return On Capital ◽  
Private Equity Funds ◽  
Capital Access

Abstract Sources of capital to finance companies in the SME sector is one of the basic conditions for the functioning and development of enterprises, especially in the early phase of their development. Increasingly popular is the use of capital market instruments, Private Equity, Venture Capital, Business Angels or Mezzanine. Funding of this kind can finance risky investments in return for a higher expected rate of return on capital. Access to financial resources and the conditions under which entrepreneurs can use them can determine the introduction of new technology, new products and services, expand distribution channels, implement changes that may lead to the growth in competitiveness and above all, innovation, thus the growth of the company. The paper presents results of statistical analysis of the venture capital and private equity funds investment strategies in selected countries. As a result investment profiles are created.

Cycle on the Warsaw Stock Exchange and the level of underpricing of venture capital and private equity funds over 2000-2013

2017 ◽  
Vol 18 (1) ◽  
pp. 0-0
Author(s):  
Piotr Zasępa
Keyword(s):  
Venture Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
Stock Exchange ◽  
Development Fund ◽  
Public Market ◽  
Equity Funds ◽  
Warsaw Stock Exchange ◽  
Private Equity Funds ◽  
The Impact

Investments of venture capital and private equity funds are made in young fast growing companies whose founders are characterized by a lack of capital for their development. Fund investment cycle is assumed to follow the process of divestment after a period of rapid growth and dynamic growth of the company. One of the methods used willingly completion of the investment by the funds is to put the company on the stock exchange. It is quite a long and expensive process, however, that the valuation of the fund may obtain a public market is often the highest possible. The process has, however, affected by the condition of the public market and current trends in the market for initial public offering. This is also reflected in the so-called underpricing of the offer or the difference between the opening and closing of the first day of trading of the company. This article aims to analyze the impact of trends on the stock exchange on the level of underestimation of the value of the transaction IPO on the Warsaw Stock Exchange in the period 2000-2013.

scholarly journals Trends in Underpricing of Private Equity Backed IPO at the Capital Market in Poland in the Years 2000–2018

2019 ◽  
Vol 53 (4) ◽  
pp. 153
Author(s):  
Piotr Zasępa
Keyword(s):  
Venture Capital ◽  
Financial Markets ◽  
Capital Market ◽  
Global Economy ◽  
Private Equity ◽  
Stock Exchange ◽  
Rates Of Return ◽  
Equity Funds ◽  
Warsaw Stock Exchange ◽  
Private Equity Funds

<p>The global economy is distinguished by the dynamic development of financial markets and with it creating a new specific segments of the market. One of them is the market for venture capital and private equity funds, which is developing very dynamically for more than 50 years. This article aims to analyze the level of underestimation of the IPO on the Warsaw Stock Exchange companies supplied by venture capital and private equity funds. Analyzing the rates of return of 54 companies supplied with VC funds and 453 companies which do not have the support of venture capital funds in the 2000–1018 period, it should be stated that traditional companies reached the lower level of underestimation. For companies a broad market level underestimation of the IPO was 9.99% and for companies with VC/PE support – 9.12%.</p>

scholarly journals Venture Capital and Private Equity Funds as Source of Financing Enterprises in Poland

2020 ◽  
Vol 13 (3) ◽  
pp. 307-327
Author(s):  
Teresa Janicka-Michalak
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Capital Investments ◽  
Economic Market ◽  
Development Fund ◽  
Equity Funds ◽  
Private Equity Funds ◽  
The Subject ◽  
Venture Capital Investments

SummarySubject and purpose of work: The main issue of the work is to present the essence of venture capital, i.e. Venture Capital funds and Private Equity funds. The aim of the article is to indicate the size of the share and the role of funds in financing enterprises located in Poland. The time horizon of the presented data covers the years 2012-2019.Materials and methods: The material for analysis is available statistical data, reports of commercial companies and other entities researching the size of the Venture Capital and Private Equity sector in Poland. For the purposes of the study, the literature on the subject was used as well as the data of: Narodowy Centrum Badań i Rozwoju, KPMG Sp. z o.o., the State Development Fund, the Startup Poland Foundation and the European Association of Venture Capital and Private Equity Investors. The method of analysis and criticism of the literature and the method of examining documents were used.Results: The research carried out in Poland makes it possible to assess the size of the implemented venture capital investments, i.e. VC and PE funds, over the years 2012-2019. The presented data indicate that the share of funds in financing Polish enterprises has a variable tendency. The percentage share of VC and PE investors in Europe in 2017-2018 is also variable.Conclusions: The Polish economic market is an attractive investment area in terms of cash allocation needs by venture capital funds. Increasing awareness of enterprise managers about the benefits of using these capitals to subsidize the activities of entrepreneurs allows them to discount VC and PE funds in innovative startups and in other processes, the implementation of which takes place in further phases of the company’s operations. The studies conducted so far cover the entire territory of Poland and are of an overview nature. The VC and PE funds, which are a new financial instrument, allow Polish enterprises to implement innovative projects.

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