Do Emerging VC Markets Mirror Established Ones? A Comparison of CEE, the USA and Israel

The venture capital market in Central and Eastern European (CEE) countries—particularly Poland, Hungary, and the Czech Republic—has experienced rapid growth in recent years, prompting a closer examination of the factors driving this expansion and the long-term trajectories of these emerging ecosystems. This study aims to compare their development stages with those of the USA and Israel, highlighting key similarities and differences in investment patterns, government interventions, and market maturity. By identifying the current phases across these CEE markets and projecting potential future stages, the research seeks to contribute to a deeper understanding of venture capital (VC) dynamics in transition economies. Using a multiple case study methodology, the analysis examines the evolutionary phases of VC markets in the USA, Israel, and the three CEE countries—Poland in more depth. The findings reveal that Poland and Hungary share parallels with the USA and Israel—particularly with Israel, where government programs have spurred growth—while the Czech Republic has relied more on private-sector initiatives. The analysis concludes that Poland and Hungary remain in the emergence phase of VC development, with further phases likely to follow. This research contributes to the literature on VC evolution by offering insights into the comparative growth trajectories of emerging ecosystems and providing a perspective on the opportunities and challenges that may lie ahead for these countries.