The Polish Market of Private Equity and Venture Capital Investments in 2001 - 2006

Grabias, Izabela Pruchnicka
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Although only a small fraction of corporate investments is financed through venture capital, research on venture capital is both important and challenging. 1Private equity means buying shares in companies which are not listed on any exchange. Thus, these are investments on the private capital market. Their characteristic feature is usually midterm and long-term character and the fact that the investor involves in managing the company that he co-finances. If such investments are made in early development stages of companies, they are classified as venture capital.However, many publications use these two names (venture capital and private equity) as substitutes. The author also uses this terminology.The aim of the paper is to show the sector structure ofpe/vc investments in Poland as well as its changes in 2001 – 2006. The author also presents some examinations on benefits from this kind of investments. These studies let conclude that venture capital investments in Poland are diversified into different sectors, which is a positive effect.However, they also pay attention to the problem of attracting pe/vc investments as a significant part of the future development of the Polish economy.
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