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.



  • Friday, 2. October, 2015


    Walmark a.s. ("Walmark" or the "Company"), a major Consumer Healthcare player in Central and Eastern Europe with a leading position in food supplements, announced today that it has further expanded its portfolio in the Czech Republic and in Slovakia by acquiring Valosun a.s. (“Valosun“). Mid Europa Partners has been an investor in Walmark since late 2012.


  • Thursday, 1. October, 2015

    CMS publishes European M&A Outlook

    Executives cautious as M&A deal value rises but the number of deals decreases Deal value has risen by 17% for the first half of the year while the volume of deals for the first half of 2015 dropped by 14% compared to last year European M&A market remains attractive to foreign acquirers Respondents believe private equity is now the most available source of financing The TMC sector has overtaken Industrials and Chemicals as the most sought after this year


  • Monday, 21. September, 2015

    Photoneo raises one of the largest seed rounds in Central Europe

    Photoneo, a Slovak-based pioneer in the field of 3D object sensing, has secured one of the largest seed rounds recorded in Central Europe. The EUR 2.1 MM investment is led by Prague-based venture capital firm Credo Ventures with participation of several notable co-investors, including RSJ, one of the largest algorithmic trading companies in the world, co-founder of ESET Miroslav Trnka, co-founders of Avast Eduard Kučera and Pavel Baudiš, CEO of Ximea Max Larin, and founder of FINVIZ Juraj Ďuriš.


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