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

Author

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  • Baranowski Bartosz

    (Poznan University of Economics and Business, Al. Niepodległości 10, 61-875 Poznań)

  • Bielicki Marcin

    (Poznan University of Economics and Business, Department of Investments and Financial Markets, Al. Niepodległości 10, 61-875 Poznań)

Abstract

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.

Suggested Citation

  • Baranowski Bartosz & Bielicki Marcin, 2025. "Do Emerging VC Markets Mirror Established Ones? A Comparison of CEE, the USA and Israel," Central European Economic Journal, Sciendo, vol. 12(59), pages 138-156.
    • Handle: RePEc:vrs:ceuecj:v:12:y:2025:i:59:p:138-156:n:1009
    DOI: 10.2478/ceej-2025-0009
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    References listed on IDEAS

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    1. David H. Hsu & Martin Kenney, 2005. "Organizing venture capital: the rise and demise of American Research & Development Corporation, 1946--1973," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(4), pages 579-616, August.
    2. 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.
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    More about this item

    Keywords

    venture capital; evolutionary phases; market comparison; emerging markets; Poland;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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