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Private equity market developments in central and Eastern Europe

Author

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  • Mihaela DIACONU

    (“Gheorghe Asachi” Technical University of Iași, Romania)

Abstract

This paper discusses the current state of the private equity industry in terms of size of investment, funds raised, disinvestment mechanisms practiced and their trends in the CEE region in comparison with other European countries. The low level and limited success in developing venture capital industry in Europe, particularly in the Central and Eastern European countries raises concerns, given the numerous evidences, which show the positive role of venture capital investment in supporting innovation. We believe that the lack of supply of venture capital is one of the hampering factors to demand of funds came from entrepreneurs in the CEE states, including in Romania, which we show to be one of the countries with a systemic lack of venture capital funding in early-stages of business.

Suggested Citation

  • Mihaela DIACONU, 2017. "Private equity market developments in central and Eastern Europe," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 131-146, Summer.
    • Handle: RePEc:agr:journl:v:xxiv:y:2017:i:2(611):p:131-146
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    References listed on IDEAS

    as
    1. Alexander Groh & Heinrich Von Liechtenstein, 2009. "How attractive is central Eastern Europe for risk capital investors?," Post-Print hal-02312824, HAL.
    2. Samuel Kortum & Josh Lerner, 2000. "Assessing the Contribution of Venture Capital to Innovation," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 674-692, Winter.
    3. Groh, Alexander Peter & von Liechtenstein, Heinrich, 2009. "How attractive is central Eastern Europe for risk capital investors?," Journal of International Money and Finance, Elsevier, vol. 28(4), pages 625-647, June.
    4. Gottschalk, Sandra & Fryges, Helmut & Metzger, Georg & Heger, Diana & Licht, Georg, 2007. "Start-ups zwischen Forschung und Finanzierung: Hightech-Gründungen in Deutschland," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110491, September.
    5. László Szerb & Gábor Rappai & Zsolt Makra & Siri Terjesen, 2007. "Informal Investment in Transition Economies: Individual Characteristics and Clusters," Small Business Economics, Springer, vol. 28(2), pages 257-271, March.
    6. Judit Karsai & Mike Wright & Zbigniew Dudzinski & Jan Morovic, 1999. "Venture capital in transition economies: the cases of Hungary, Poland and Slovakia," Chapters, in: Mike Wright & Ken Robbie (ed.), Management Buy-outs and Venture Capital, chapter 4, Edward Elgar Publishing.
    7. Judit Karsai & Mike Wright & Zbigniew Dudzinski & Jan Morovic, 1998. "Screening and valuing venture capital investments: evidence from Hungary, Poland and Slovakia," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(3), pages 203-224, January.
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    Cited by:

    1. Mihai Precup, 2019. "Challenges to Scaling Sustainable Private Equity Markets in Emerging Europe," Sustainability, MDPI, vol. 11(15), pages 1-16, July.
    2. repec:agr:journl:v:4(621):y:2019:i:4(621):p:19-34 is not listed on IDEAS
    3. Mihaela DIACONU, 2023. "Obstacles to innovation and policy implications: exploring the case of Romanian firms," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(634), S), pages 5-20, Spring.
    4. Mihaela DIACONU, 2019. "Business R&D investments in the EU: Main dynamics and economic effects," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(621), W), pages 19-34, Winter.
    5. Karsai, Judit, 2022. "A kelet-közép-európai startupok romló kilátásai a nemzetközi kockázatitőke-piacon [Eastern European start-ups looking for international venture capital]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 1009-1030.

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