The Ministry of Finance publishes a World Bank‘s report on business angels in the Czech Republic
20. 12. 2018 | Source: Ministry of Finance
The Ministry of Finance publishes a World Bank‘s report on business angels in the Czech Republic. Business angels are private investors who invest their time and capital in companies in the early stages of their development, especially in so-called start-ups.
The published report indirectly follows the World Bank‘s Report on the Capital Market in the Czech Republic, which was published on 2 October 2017.
Both of these reports were funded by the European Commission under the Structural Reform Support Program (SRSP) under the Regulation (EU) 2017/825. The Ministry of Finance will seek further funding from this program to enable the realisations of the recommendations contained in the report on business angels.
In its analytical part, the World Bank‘s report describes and compares the current state of business angels in the Czech Republic, especially their way and preference of investing, organisation into associations, regulatory conditions, and formulates recommendations for improving the business angel‘s investment environment, including, among others, a national association of business angels or creation of special funds to invest in start-ups.
The main findings contained in the report include the fact that there is still a large reserve for investments in start-up in the Czech Republic and investing in start-ups in the Czech Republic is dominated by a relatively small group of highly wealthy individuals. These investors invest mostly individually, either directly into companies or through a private fund or family businesses.
In the Czech Republic, there are almost no joint investments of several business angels together and the structure and organization of this phenomenon still does not reach the desired levels. Despite the fact that several successful start-ups took place on our territory, they are de facto concentrated only in Prague and Brno and are limited to only a few sectors, notably ICT. World Bank referred on this report on its blog.
In addition to its own report, the MF publishes an executive summary, a presentation to the report and a translation of the recommendations into the Czech language. Any comments on the report can be sent to ales.kralik@)mfcr.cz.
Deputy Minister Lenka Dupáková on World Bank‘s report on business angels in the Czech Republic
Nelson Gray from World Bank on report on business angels in the Czech Republic