Current Data / Statistics on PE & VC
From 1990 to 2008, CVCA members executed more than 197 investments totaling EUR 4.2 billion. They invested into a number of production companies and services, and the individual sector drawing the highest share of invested funds was IT/telecommunications/internet. At present, the Association's full members manage around 20 Czech investments in their portfolios while still others are being prepared. These include, for example, Pietro Filipi, a.s.; CCS, a.s.; Computer Press, a.s.; Holmes Place Czech Republic, s.r.o.; Gumotex, a.s.; VUES Brno s.r.o.; Lanex a.s.; Lexum a.s. and others.
Financing sources for PE/VC funds include in particular pension funds, insurance companies, banks, funds of funds, and government agencies. In the Czech Republic, the participation of pension funds and insurance companies in PE/VC investing is significantly restricted by law. While large regional private equity funds are able to obtain funding from foreign institutions, smaller domestic funds oriented toward venture capital are too small and therefore uninteresting for such investors. Domestic sources for these funds are thus lacking. Another difficulty lies in legal barriers to establishing and operating PE/VC funds within the Czech Republic, where we thus still encounter primarily funds headquartered and based in foreign countries and which were established under different legal systems.
The Association is conducting discussions on this subject with representatives of the Ministry of Finance, which agrees that the current legislation regarding PE/VC is insufficient. The Association and the Ministry of Finance aim to change the current legislation and to create more favorable conditions for the existence of PE/VC in the Czech Republic.
Another reason limiting expansion in PE/VC investments is that entrepreneurs are not prepared to accept a new partner with an equity share (the logic of "a smaller share of a much bigger pie"). To ensure a functional relationship between an investor and entrepreneur, it is essential that the two partners are in harmony and pursue the same goal as to the direction of the company. Only then will the invested funds be used to their best advantage and lead to the exit (i.e. the conclusion of the investment and disinvestment of the investor).
Funds operating in the Czech Republic typically make investments in excess of a EUR 1 million minimum. That means the early stages of a venture have practically no possibility to seek financing in this form. Funds whose investment criteria allow for small investments of less than EUR 1 million are nonexistent in the Czech Republic, and a business angels network does not adequately take their place. Ventures already having research and development results must still seek funds for their commercialization among friends and family or rely on grants from the local government or European coffers.
Each year, the EVCA (European Private Equity and Venture Capital Association) publishes information on executed investments. In its statistics, it presents two approaches: the "industry" approach and the "market" approach. The industry approach takes in all investments carried out by domestic private investors, whereas the market approach includes all private equity and venture capital investments made within the Czech Republic.
It is not possible to create a wholly unambiguous picture of the Czech PE/VC market from the statistics presented by EVCA. One problem lies in imprecise interpretation of the data. EVCA's figures include investments from domestic financial groups that sometimes act as PE/VC funds and sometimes as private holdings with a different logic of operation. Realized investments amounted to EUR 283.3 million in 2005, EUR 1,306.3 million in 2006 (including the total value of the investment in České Radiokomunikace), EUR 182 million in 2007, and EUR 435 million in 2008. The statistics published by EVCA for 2009 state that the investments in the Czech Republic reached EUR 1,396 million, which represents 57% of total investments within the CEE region.
Other information, graphs and tables containing numerical data can be downloaded here:
CVCA 2012 Activity Report - PE activities in CR in 2012 (pdf, 611 kB)
EXECUTIVE SUMMARY - Time for another look– Central & Eastern Europe Private Equity (pdf) - full version to download at: www.ceeprivateequity.com
Yearbook 2013 (xls)
Statistics CEE 2012 (pdf, 818 kB)
Statistics CEE 2011 (pdf, 547 kB)
M&A Update, 1H12 Czech Republic (pdf, 314 kB)
Benchmark Study 2008 (pdf, 1 225 kB)
Benchmark Study 2006 (pdf, 763 kB)
Statistics Czech Republic 2009 (pdf, 299 kB)
Statistics Czech Republic 2007 (pdf, 9 kB)
Statistics Czech Republic 2006 (pdf, 95 kB)