Cluster Analysis of PE/VC Market in Central and Eastern European Countries
Cluster Analysis of PE/VC Market in Central and Eastern European Countries

Author(s): Zbigniew Drewniak
Subject(s): Politics / Political Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Private equity; venture capital; cluster analysis; k-means method
Summary/Abstract: Purpose:The aim of the article is to present the PE/VC market in Central and Eastern Europe by country groups, which allows a more comprehensive analysis of it, the perception of investment potential and can help PE/VC funds to understand this diverse area. Design/methodology/approach:The article uses cluster analysis and the k-means method to specify group of countries within CEE region. A similar analysis based on the entire PE/VC market in Europe was presented in research of Grzegorczyk (2015) and Drewniak (2014). Findings:Grouping by the k-means method allowed to distinguish three groups of countries in CEE region characterized by different degree of development of the PE/VC market. The first cluster consists of one country -Poland, which can be considered a leader in terms of PE/VC investment in CEE region. Research/practical implications:Conclusion section presents recommendations for PE/VC funds operating in Europe and interested in investments also in the CEE region. Grouping of numerous countries in this region may create new opportunities for perceiving this market. Originality/value:The added value is the implication of the method that allows to analyse the PE/VC market from the point of view of groups of countries. Thus, it can contribute to increasing interest in investments in the Central Eastern Europe region and increasing its importance in investments compared to the entire European PE/VC market.

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