THE IMPORTANCE OF STATE’S ROLE IN THE HUNGARIAN VENTURE CAPITAL MARKET
Jenő Konecsny,Dóra Havay
The presence of state also has an indirect and direct effect on the developement of
the Hungarian venture capital market. Indirect effect is realized through the law
legislation and the direct one by the operate of the different venture capital firms
and funds which invest public financial sources. The main purpose of the direct
intervention is to finance the under-capitalized small and medium-sized start-up
companies with equity.
The paper examines the Hungarian venture capital market from the aspect of state
intervention. It starts with an European overview which summarizes the common
and different attributes of state’s role in the venture capital market between
several European countries. The paper focuses on the Hungarian situation, it
describes concisely the effect and efficiency of the governmental instructions
which were taken for the legislation of the venture capital market. Using the
results of a previous research the paper also examines the characteristics of the
direct instructions. The paper decribes briefly the main details of the publicprivate
initiative called JEREMIE-program, which started on the Hungarian
venture capital market in the recent past.
venture capital, public policy, equity gap
Aernoudt, Rudy (1999), "European policy towards venture capital: myth or reality?" Venture Capital, Vol. 1, No. 1, pp. 47-57.