Czech Private Equity and Venture Capital Association

Private equity and venture capital (PE/VC) are alternative sources of funding for innovative projects and companies with potential for rapid growth. The term private equity refers to medium- to long-term financing provided in exchange for acquiring a stake in the owners’ equity of enterprises whose shares are not traded on any stock exchange. Funds are invested into companies that have potential for creating value and increasing their market share and whose business plan aims to produce and offer a highly innovative product, process or technology.

If we explore the definitions of private equity and venture capital more closely, we can agree on the following explanation. Both cases concern investment in a non-publicly traded company for which the investor acquires a share in the company’s owners’ equity. The term private equity is the name for the whole group of such investments. Private equity itself comprises both purchases of companies by company management (buyouts) or by external managements (buy-in) as well as venture capital, i.e. the capital invested in a company’s seed, start-up and later growth stages.

In the Czech environment, venture capital is understood as medium- to long-term capital invested in the form of an equity stake in a company. The venture capital fund acquires a share in the company’s registered capital in exchange for the investment, and, in addition to funding, it also provides the firm with professional assistance (the principle of “smart money”). Most often, this assistance takes the form of financial and strategic support in developing the company. It varies for individual investments, however, depending upon what form the investor and enterprise agree. It may involve actively strengthening the team in the top management positions or a passive role as advisor in the financial area. The investor often enhances the company through its beneficial contacts in various business areas and in acquiring new customers.



  • Thursday, 9. June, 2016

    Genesis Fund Enters the Pharmaceutical Sector, Acquires QUINTA-ANALYTICA

    Genesis Private Equity Fund III (GPEF III), a private equity fund advised by Genesis Capital, has completed the acquisition of 75 % of the company QUINTA-ANALYTICA, an established provider of R&D and regulatory services for pharmaceutical, biotechnology and generic drug industries. It is a first investment for GPEF III, which has approximately 80 million EUR available for investments to small and medium-sized enterprises in Czech Republic and Slovakia.  


  • Thursday, 21. April, 2016

    Angel Capital EXPO Europe, May 5, 2016

    The Angel Capital EXPO Europe is the premier gathering of the angel capital community. The EXPO brings together angel investors and entrepreneurs looking for funding.


  • Tuesday, 19. April, 2016

    BDO Advisory – new owner of Servodata

    Less than five years after entry in Servodata, Genesis Private Equity Fund II (GPEF II) sells its share to a new investor – Czech company BDO Advisory which is part of the fifth biggest global network of audit and consultancy companies. During the Fund´s participation, Servodata that started as a family business developed into a strong group offering a broad portfolio of services in the area of information technologies.


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