Proposals for legislative changes as funding to support the development of private equity and venture capital in the Czech Republic

Abstract

The essence of the paper is the formulation of draft amendments to the legislative and institutional conditions necessary for the development of private equity financing and venture capital in the Czech Republic. Changes in these areas were defined based on conclusions drawn from the foreign stud-ies, the analysis conclusions of legislation in selected European countries (UK, Netherlands, Ireland, Po-land), which belong among the PE / VC market leaders in Europe, and on other numerous information sources. In connection with fulfilment of the targets it is possible to formulate changes that may lead to improved conditions for the financing by PE / VC in the Czech Republic: full implementation of the Directive of the European Parliament and of the Council 2003/41/EC of 3 June 2003 to allow the investment of pension funds and insurance companies in private equity and venture capital. Public support for funding by PE / VC, for example in the form of tax deductible expenses generated investment losses. Establishment of a public-state fund to support emerging and developing businesses, which would operate on the basis of a “fund of funds”, the Fund’s PE /VC.