THE STRUCTURE OF VENTURE CAPITAL RAISING BY COMPANIES IN POLAND AND CENTRAL AND EASTERN EUROPE: SELECTED ASPECTS

The ability to identify needs and accurately define ideas, willingness to take risks and the capability of taking up financing options available in the market are the features of every modern entrepreneur. Although capital market instruments are becoming increasingly popular, company owners still prefer classical money market instruments offered by the banking sector. Venture capital funds such as seed, start-up or later-stage venture funds are not a widespread source of development capital for most entrepreneurs in Poland and Central and Eastern Europe. This article outlines research results addressing the volume and number of funds raised in the countries of Central and Eastern Europe as well as their popularity among companies of different sizes. The results presented are based on source data from annual reports and publications that have been produced and made available by capital market institutions and from the authors' own research on Polish entrepreneurs. The scope and volume of venture capital used by companies for development are characterised, building on a linear Regression analysis and comparisons. The article also attempts to determine the development trend of possible sources of financing through the capital market instruments (venture capital) and poses the research question about entrepreneurs' current awareness of opportunities to diversify companies' financial portfolios.