The Attractiveness of Central Eastern European Countries for Venture Capital and Private Equity Investors

Titel The Attractiveness of Central Eastern European Countries for Venture Capital and Private Equity Investors
Autor(en) Alexander P. Groh, Heinrich Liechtenstein, Karsten Lieser
Jahr 2008
Publiziert in University of Navarra, IESE Business School (Hrsg.), IESE Business School Working Paper No. D/677 . Barcelona

We address the attractiveness of Central Eastern European countries for VC/PE investors by the construction of a composite index. For the index’s composition we refer to the results of numerous prior research papers that investigate relevant parameters determining entrepreneurial activity and/or the engagements of institutional investors. We aggregate the index via five different methods and receive country rankings that vary only slightly, signaling a robust index calculation. We clearly identify six tier groups of attractiveness for all of our sample countries. We compare our index with the actual fundraising activities in the individual countries and reveal a reasonable correlation of both figures. The results highlight the strengths and weaknesses of the particular economies and provide guidelines for policy improvements and institutional investors‘ country allocations.