Informal Venture Capital in the Czech Republic: An Empirical Study

Informal Venture Capital in the Czech Republic: An Empirical Study

Paper in proceedings (conference paper)

Business angel investments are considered to be the most important source of early-stage equity capital for small- and medium-sized enterprises in the US as well as in some other West European countries. In the Czech Republic, it is difficult to obtain any estimates of business angels activities. In order to encourage the development of the market, this explorative survey addresses filling the existing survey gap concerning the following characteristics of the Czech informal venture capital market: Who is a typical business angel in this market? What industries do the BAs invest in? What is their experience with partners, i.e. investee enterprises, universities, technology parks, business angels networks, venture capital funds etc.? What are their key motives for conducting venture capital investments? In many aspects, the findings of this study conform to the results of previous studies carried out within the conditions of developed markets. In other aspects, however, they show certain differences.

Business angel investments are considered to be the most important source of early-stage equity capital for small- and medium-sized enterprises in the US as well as in some other West European countries. In the Czech Republic, it is difficult to obtain any estimates of business angels activities. In order to encourage the development of the market, this explorative survey addresses filling the existing survey gap concerning the following characteristics of the Czech informal venture capital market: Who is a typical business angel in this market? What industries do the BAs invest in? What is their experience with partners, i.e. investee enterprises, universities, technology parks, business angels networks, venture capital funds etc.? What are their key motives for conducting venture capital investments? In many aspects, the findings of this study conform to the results of previous studies carried out within the conditions of developed markets. In other aspects, however, they show certain differences.

Venture Capital, Business Angels, Supporting Start-Ups, Central and Eastern Europe

Rizikový a rozvojový kapitál, soukromí investoři, inovativní podnikání, střední a východní Evropa.

ZINECKER, M.; KOPPITZ, D.; REŽŇÁKOVÁ, M.

2013

28.12.2012

WSEAS Press

Montreux, Switzerland

978-1-61804-148-7

Mathematical Methods for Infromation Science and Economics

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