The Bratislava Stock Exchange

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AmCham Business Breakfast
Boosting the Slovak Economy Improving Access to
Venture Capital Mária Hurajová Bratislava Stock
Exchange Bratislava, 25.1.2006
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The Role of Venture Capital

• macroeconomic effect boosting the economy
• microeconomic effect (SME) alternative source of
  financing companies growth

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Macroeconomic Level

• contribute to economic growth
• increase employment by creating new jobs
  opportunity

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Microeconomic level

• to be at hand when or where banks do not like to
  be involved
• to offer financial solution aiming at growth and
  development of company
• to play a role as a catalyst the presence of
  venture capital in company may in the future
  attract other investors (banks, strategic
  investor)
• exit strategy IPO support of capital market

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Forms of Financing
bank
Loan
privat investor financial, strategic
PE/VC
Seed Start-up Company Expansion development
e x i t
BankPE/VC
Loan Equity
PE/VCPE/VC
Capital market
going public I P O
Equity
Privat equity
angels,hedge funds,indiv.inv.
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Barriers in Development of Venture Capital
Industry

• Low level of development of venture capital
  industry reflects i.a.
• lack of a regulatory framework,
• lack of an institutional investor base,
• lack of tax policies,
• the absence of deep and liquid capital
• market that allows for easy exit

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Win - Win Situation
Seed Start-up Company Expansion development
going public I P O
Venture capital
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Prospects for PE/VC Industry

• Removing hurdles
• Competitiveness strategy for the Slovak republic
  until 2010 Action plans
• Focus on
• removing barriers in entrepreneurship
• support of venture capital
• support of capital market

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