Venture capital and private equity financing has become an important mechanism for the development and radical transformation of companies worldwide in recent decades. Nevertheless, the venture capital and private equity sector covers only a relatively small proportion of economic activity related to corporate financing. The two basic areas of venture capital and private equity industry are venture capital and buyouts. They play a key role in financing firms in radically different situations. The importance of venture capital and private equity as a financing intermediary channel can be measured in several ways. Its significance can be compared to the total amount of corporate financing or to the total value of publicly listed companies; however, it can also be characterized by its magnitude in relation to the generated volume of GDP generated in the given country. The importance of venture capital and private equity financing is reflected in the volume of capital raised by venture capital and private equity funds from institutional investors for investments, the amount of capital managed by the existing funds, the value of capital actually invested in each year and the number of companies financed by them in a year. Finally, the importance of venture capital and private equity investments can also be seen in the role the financed companies play in the economy, and also in the magnitude of changes they trigger in these companies. The study examines these relationships and effects in details.
Since its formation 20 years ago, the HVCA has become the undisputed voice of the Private Equity and Venture Capital industry in Hungary. The association has come a long way since its inception by five founding members in 1991 and today represents the interests of 74 firms in aiding public understanding of its members activities, promoting the industry to entrepreneurs and investors as well as maintaining a regular dialogue with public policymaking bodies at national and international level.