Venture Capital Financing of Czech Companies and Development of Performance of their Employees

Anna Fedorová, Jaroslava Rajchlová


Purpose of the article: The contribution presents research results of venture capital influence on performance of employees. We applied adjusted operating results to precisely determine the performance of employees. The term “modified operating result” was used for this quantity, which – related to one employee – was labelled as the performance of employee.
Methodology/methods: An assumption of venture capital positive influence on performance of employees was tested within the file of Czech companies. Development of their performance was monitored in the period of venture capital investor cooperation with company and maximally three years after his exit; subsequently, both periods were compared. Mixed research was applied, followed by logical inductions. The assumption of performance improvement was falsified, complementary characteristics for falsification was searched, being the finding how mentioned statement stood the empirical data, how was proved.
Scientific aim: The assumption was formulated – venture capital involvement in companies results in the improvement of performance of their employees.
Findings: The assumption on venture capital positive influence on the improvement of performance was confirmed (87% companies) in the period of its involvement in the company. 84% companies reported improvement in the period of three years after the exit of investor. The improvement was more frequent with the presence of investor in the company; after his exit such frequency decreased. After the exit of investor the performance improved, even in those companies not reporting such improvement in the period of his participation.
Conclusions: The conclusion could be drawn on the basis of logical induction of results of individual monitored aspects of the research objectives that venture capital influenced positive development of performance even after its exit from such company.


venture capital; performance of employee; modified operated result

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Online: 2014-07-31