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.

 


News

  • Tuesday, 22. November, 2016

    Care home crisis: new health-tech platform secures record funding to disrupt dysfunctional sector that costs UK taxpayers billions

    November 20, 2016: Cera, a revolutionary health-tech start-up, today launches its on-demand social care platform after completing the largest-ever seed round in Europe’s healthcare history. Former and current heads of leading tech giants, Prague-based venture capital fund Credo Ventures, international banks, the World Health Organisation, and award-winning food delivery service JustEat*, have pumped £1.3 million into the disruptive business, which aims to solve the country’s growing need for quick, reliable, and transparent social care.  

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  • Tuesday, 25. October, 2016

    Genesis Fund sells SWELL. The new strategic owner will be the international group Altran

    By the end of October, SWELL a.s., the leading Czech provider of services in applied research and development for automotive industry, based in Hořice, Hradec Králové Region, will have changed its ownership. Genesis Private Equity Fund II (GPEF II), which was the owner of 96% stake, sold its share to the international group Altran. Together with GPEF II also the executive managers of SWELL sold their minority stake, and Altran becomes the sole owner of the company.

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  • Monday, 19. September, 2016

    Genesis Private Equity Fund III has secured over CZK 2 billion for equity investments into SMEs, part has already been invested

    Genesis Private Equity Fund III (GPEF III), fourth in the line of private equity funds advised by Genesis Capital, has completed its fundraising. The fund has secured more than EUR 80 million (CZK 2.2 billion), mostly from institutional investors. These resources are now available for investment into small and medium-sized enterprises in the Czech Republic and Slovakia and partly also in Poland, Hungary and Austria. The first investment has already been made, others are in negotiation.  

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