Venture Capital - Czechia

Czechia

Highlights

Market definition

In-Scope/Out-of-scope

Market structure

Reports

Methodology

The Czech Republic is projected to reach a Total Capital Raised of US$97.39m in the Venture Capital market market by 2025.
In the Czech Republic, the Later Stage market is expected to dominate the market with a projected market volume of US$50.72m in 2025.
In global comparison, the United States is forecasted to generate the most Capital Raised, amounting to US$140.5bn in 2025.
Czechia's Venture Capital market is experiencing a surge in funding rounds, attracting global investors due to its innovative tech startups.

Capital Raised

Capital Raised Change

Notes: Data shown is using current exchange rates. Data shown reflects market impacts of Russia-Ukraine war and the bankruptcy of the Silicon Valley Bank.

Most recent update: Mar 2024

Source: Statista Market Insights

Capital Raised

Capital Raised Change

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Oct 2024

Source: Statista Market Insights

Analyst Opinion

The Venture Capital market in Czechia is witnessing moderate growth, influenced by factors such as increased entrepreneurial activity, improved access to funding, and a growing interest in innovative startups, despite challenges in scaling and market saturation.

Customer preferences: In Czechia, there is a rising trend towards sustainable and socially responsible investments within the Venture Capital market, reflecting a growing consumer preference for eco-friendly and ethical business practices. This shift is influenced by heightened awareness of climate change and social issues among younger demographics, who prioritize companies that align with their values. Additionally, the demand for innovative tech solutions addressing environmental challenges is propelling investments in green startups, reshaping the traditional capital raising landscape.

Trends in the market: In Czechia, the Venture Capital market is increasingly shifting towards investments in sustainable and socially responsible startups, driven by a growing consumer demand for ethical business practices. This trend is particularly prominent among younger investors who prioritize environmental and social governance (ESG) criteria in their investment decisions. As awareness of global challenges such as climate change rises, there is a notable increase in funding for innovative tech solutions that address these issues. This evolution signifies a transformative moment for industry stakeholders, encouraging traditional investors to adapt their strategies and align with these emerging values, potentially reshaping the overall capital raising landscape.

Local special circumstances: In Czechia, the Venture Capital market is influenced by a blend of historical, cultural, and regulatory factors that shape its unique landscape. The country's strong engineering and technical education system fosters a talent pool rich in innovation, particularly in technology and green industries. Additionally, the Czech government's supportive policies for startups, including tax incentives and grants, encourage investment in sustainable ventures. The cultural emphasis on community and social responsibility further drives investor interest in projects that prioritize ESG criteria, distinguishing Czechia from other markets.

Underlying macroeconomic factors: The Venture Capital market in Czechia is significantly shaped by macroeconomic factors such as the overall economic stability, foreign direct investment trends, and fiscal policies promoting entrepreneurship. A robust national economy, characterized by steady GDP growth and low unemployment rates, enhances investor confidence and encourages the flow of capital into innovative startups. Furthermore, favorable fiscal policies, including tax breaks for investors and funding programs for emerging enterprises, stimulate interest in venture capital. Global economic trends, such as the rise of digital transformation and sustainable development, also play a crucial role, as they align with the Czechia's focus on technology and green industries, attracting both local and international investors to the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

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Venture capital worldwide - statistics & facts

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.