Emerging VC markets: Exploring determinants of venture capital internationalisation in the Polish funding ecosystem for start-ups and technology ventures

Abstract

Poland represents an emergent venture capital (VC) market and it faces several critical challenges that impede its growth and dynamism. Key issues identified include a lack of growth capital, diminishing market activity, dependency on public funds, and a scarcity of foreign investment. To address these challenges, this thesis proposes the internationalisation of Poland's VC market by attracting foreign capital as a viable solution. Given that emergent VC markets similar to Poland are understudied in existing literature, this study provides a qualitative analysis framework to better understand these markets through the perspectives of industry participants. Focal to the research are the determinants of the foreign investor's decision to enter the Polish market with different degrees of commitment. The key results reveal ecosystem dynamics, incorporating complex network of variables and processes, which ultimately have their effect on the perception of risk and return in such ecosystem. This comprehensive analysis aims to offer new insights into the unique dynamics of emergent VC markets and propose actionable strategies to address the ecosystem issues and enhance their development, by integrating into the global venture capital landscape.