Venture capital investments in Central and Eastern Europe at a record level

Venture capital investments in Central and Eastern Europe reached an all-time high of EUR 821 million in 2022, up 13% from the previous record in 2021. The value of venture capital investments from last year is ten times higher than the level from ten years ago, according to the latest Invest Europe data published in the report entitled “Central and Eastern Europe Private Equity Statistics 2022”. VC funds financed 451 companies in the region.

Venture capital funds raised the most funds for new investments last year – EUR 708 million, i.e. 44% of the total funds collected in 2022. For all PE/VC investments in the region, funds raised €1.62 billion, down 11% from the previous year, but still at the level of most of the last five years.

The value of all PE/VC investments in the region amounted to EUR 2.77 billion last year, 35% less than in the record year 2021, mainly as a result of the lack of large transactions. The largest amount of funds, as much as EUR 1.23 billion, was financed by companies at the growth stage.

PE/VC funds financed 590 companies in the region in 2022, more than half of which were companies from the ICT sector. 32% of the total invested funds went to companies from this sector.

Taking into account the value of investments, the largest markets in the region were the Czech Republic (20% of the total value of investments in CEE), Estonia (17%), Poland and Croatia (16% each). The largest number of companies was financed in Hungary – 184, of which 142 by venture capital funds.

In Poland, PE/VC funds invested EUR 443 million in 96 companies. 78 of them are young innovative companies financed by venture capital funds. They raised EUR 215 million, which is a record value of venture capital investments in Poland.

Private investors and family offices are beginning to appreciate the growth potential offered by the PE/VC industry in Central and Eastern Europe. Their share in the total value of capital raised for investments in the region in 2022 increased to 23%. Public institutions, which provided 33% of the collected funds in 2022, also play an important role.

“Central and Eastern Europe remains a stable and dynamic market. A strong entrepreneurial spirit, high quality of technical staff and ambitions and diligence of teams, strengthened by private equity/venture capital investments, continue to bring results. Together, we implement innovations and create future European champions in the region.” – said Bill Watson, chairman of the working group for Central and Eastern Europe operating as part of Invest Europe (Invest Europe Central and Eastern Europe Task Force).

“Despite the obvious challenges, fundamental and unwavering economic factors, such as income growth, foreign investment and the dynamic, internationally integrated market of Central and Eastern Europe, generate new investment opportunities. Private equity plays an important role in shaping the business and investment environment in the region and deserves the careful attention of institutional investors.” – added Eric de Montgolfier, CEO of Invest Europe.

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