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.



  • Monday, 27. July, 2015

    CVCA 2014 Activity Report

    CVCA publishes the brochure summarizing PE and VC activities in CR in 2014.


  • Monday, 20. July, 2015

    Genesis Capital announces another successful exit: JRC Czech

    Genesis Capital has sold its share in JRC Czech, the Czech and Slovak leader in the segment of video games and videogame consoles. During the nearly three years under the ownership of GPEF II Fund, JRC Czech has doubled its sales, providing shareholders with above-average return on their investment. Minority shareholder Slavomír Pavlíček sold his share together with Genesis Capital. JRC Czech is being acquired by Hamaga, a company that has until now mainly specialized in the tourism and development segments. Following the sale of Profimedia and HSW Signall, the deal marks the third successful exit completed by Genesis Capital this year.


  • Monday, 20. July, 2015

    Report on Financial Market Developments in 2014

    Reports on Financial Market Developments are published on annual basis. They cover the most significant events and trends in the past year, including expected future trends in the particular financial market segments.


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