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The Evolution of the Venture Capital Industry in Transition Economies: The Case of Poland


  • Darek Klonowski


This article focuses on the evolution of the venture capital industry in emerging markets by examining the Polish experience between 1990 and 2003. Evidence is provided to demonstrate that the venture capital industry developed in three distinct phases (development, expansion and correction) and broadly followed a normal Western-type venture capital cycle. These stages differ from each other in terms of the amount of capital raised, the nature of investments (deal size, sectors of interest and stages of investment) and divestments. The study also concludes that there is no one typical venture capital firm operating in Poland, but rather different types; the study points to three different groups. Other conclusions are that there are strong advantages for early entrants into the industry, that venture capital funds with a strong local presence seem to achieve higher returns, and that venture capital firms become more specialised once the industry matures. The research is based on a survey of 78 venture capitalists (the response rate was 64%).

Suggested Citation

  • Darek Klonowski, 2005. "The Evolution of the Venture Capital Industry in Transition Economies: The Case of Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 17(3), pages 331-348.
  • Handle: RePEc:taf:pocoec:v:17:y:2005:i:3:p:331-348
    DOI: 10.1080/14631370500204313

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    References listed on IDEAS

    1. Jens Köke & Michael Schröder, 2003. "The Prospects of Capital Markets in Central and Eastern Europe," Eastern European Economics, Taylor & Francis Journals, vol. 41(4), pages 5-37, July.
    2. Enrique Díaz De Leó & Paul Guild, 2003. "Using repertory grid to identify intangibles in business plans," Venture Capital, Taylor & Francis Journals, vol. 5(2), pages 135-160, April.
    3. Gompers, Paul & Lerner, Josh, 2000. "Money chasing deals? The impact of fund inflows on private equity valuation," Journal of Financial Economics, Elsevier, vol. 55(2), pages 281-325, February.
    4. 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.
    5. Timotej Jagric, 2003. "Business Cycles in Central and East European Countries," Eastern European Economics, Taylor & Francis Journals, vol. 41(5), pages 6-23, January.
    6. Ryszard Wilczyński & Piotr Graff, 1994. "The Role of International Financial Institutions in Poland's Transition to a Market Economy," Eastern European Economics, Taylor & Francis Journals, vol. 32(5), pages 36-50, October.
    7. Gibb, Allan A., 1993. "Small business development in Central and Eastern Europe--Opportunity for a rethink?," Journal of Business Venturing, Elsevier, vol. 8(6), pages 461-486, November.
    8. Wojciech Bienkowski, 2002. "Completion of Systemic Transformation Processes in Post-Communist Countries as a Condition for Successful Development of Economic Cooperation," Eastern European Economics, Taylor & Francis Journals, vol. 40(3), pages 51-68, May.
    9. Richard T. Bliss, 1999. "A venture capital model for transitioning economies: The case of Poland," Venture Capital, Taylor & Francis Journals, vol. 1(3), pages 241-257, July.
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    Cited by:

    1. Judit Karsai, 2012. "Development of the Hungarian Venture Capital and Private Equity Industry over the Past Two Decades," IEHAS Discussion Papers 1201, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    2. Karsai, Judit, 2006. "Kockázati tőke európai szemmel. A kockázati- és magántőkeipar másfél évtizedes fejlődése Magyarországon és Kelet-Közép-Európában
      [Venture capital through European eyes. The development of venture a
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1023-1051.
    3. Nhu Tuyên Lê & Marc De Bourmont & Olivier Vidal, 2011. "La perception des changements comptables par les acteurs : le cas du Viêt-Nam," Grenoble Ecole de Management (Post-Print) hal-00650545, HAL.

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