Analysis of the attractiveness of the Polish market for venture capital funds
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Wierzbicka, Katarzyna; Gardocka-Jałowiec, Anna Article Analysis of the attractiveness of the Polish market for venture capital funds e-Finanse: Financial Internet Quarterly Provided in Cooperation with: University of Information Technology and Management, Rzeszów Suggested Citation: Wierzbicka, Katarzyna; Gardocka-Jałowiec, Anna (2017) : Analysis of the attractiveness of the Polish market for venture capital funds, e-Finanse: Financial Internet Quarterly, ISSN 1734-039X, De Gruyter Open, Berlin, Vol. 13, Iss. 3, pp. 15-23, https://doi.org/10.1515/fiqf-2016-0026 This Version is available at: https://hdl.handle.net/10419/197382 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/3.0
www.e-finanse.com University of Information Technology and Management in Rzeszów 15 Katarzyna Wierzbicka1, Anna Gardocka-Jałowiec2 Abstract Thepurposeofthisarticleistopresentthefactorsandphenomenaresultingfromtheinteraction ofeconomicentities(entrepreneursandconsumers),whichdeterminethelevelofinvestmentattractivenessforventurecapitalfunds.Theactivitiesareaimedatidentifyingwhichsectorsand sectorsoftheeconomyinPolandmayinfuturedrawagrowinginterestofventurecapitalinvestors. Theyconcludethatinthelongrun,consumervaluesandexpectationswillhaveafargreaterimpactthanthetechnologicalchangeitself,ontheprocessofbuildingamarketpositionandonthe managementofanenterprise.ItisconcludedthatthePolisheconomy,asaresultofdemographic change,globalizationandtechnology,willappearasanattractiveareaforventurecapitalinvestment.ThebasisofthediscussionisPolishandforeignliteratureonthesubject,currentreportsand statisticaldata. 1 UniversityofBialystok,katarzynawierzbick[email protected]. 2 UniversityofBialystok,anna.gardock[email protected]. ANALYSIS OF THE ATTRACTIVENESS OF THE POLISH MARKET FOR VENTURE CAPITAL FUNDS Financial Internet Quarterly „e-Finanse” 2017, vol.13/ nr 3, s. 15-23 DOI: 10.1515/fiqf-2016-0026 JEL classification: D15, D21, D25, O30 Keywords: venture capital, investment attractiveness, innovation, consumption Received:30.06.2017 Accepted:30.10.2017
www.e-finanse.com University of Information Technology and Management in Rzeszów 16 „e-Finanse” 2017, vol. 13 / nr 3 Katarzyna Wierzbicka, Anna Gardocka-Jałowiec Analysis of the attractiveness of the Polish market for venture capital funds Introduction Variation has become an immanent feature of the economiesofthe21stcentury.Inthemarketspacethere areconstanttransformationsresultingfromthepaceof technologicalprogress,economicandsocialrealities.On the one hand, they affect consumers’ market behavior and, on the other, motivate companies to seek new opportunitiesforgrowth,mobilityinthemarketspace, andredefinitionofthestrategy.Searchingforattractive investmentareasisachallengeandanexpressionofthe paradox of the hyper-competitive environment, i.e. the constantsearchfornewsourcesofcompetitiveadvantage (Aveni, 1995, p. 45). The basis of this exploration is innovation, whose creation, implementation and disseminationiscarriedoutinavarietyofsystemsand structures(formalandinformal),enterprisesintheprivate andpublicsectorsandindifferentareasofhumanactivity. Ontheonehand,allthisshowsthewidevarietyofuseof humanactivity,andontheothertheneedforadequate management and non-financial support. In light of the above, it is justified to consider what socio-economic spheres may represent the investment attractiveness of Polish enterprises in a time perspective; analyze the possibilitiesoffinancialsupport,bringtheexperienceand knowledge necessary for the future development, and createpartnershiprelations.Allthisisconsideredtobe the basis for ensuring transparency, independence and speed in making investment decisions. The background to the accepted and concluded conclusions is that not only financial support but also the market, its changes anditsdeterminantsarefactorsthatdeterminesuccess. ThebasicsofFriedrichvonHayek’s(Hayek,2004,p.28) wordsapply:“Thepeculiartaskofeconomicsistoshow peoplehowlittletheyreallyknowwhattheythinkcanbe designed”. Thepurposeofthediscussionistopresentselected factorsandphenomenaresultingfromtheinteractionof individualsandsocieties,withparticularattentiontothe sphereofconsumption,whichdesignatesareasofmarket activity attractive to venture capitalists. The proposed analyzes are an attempt to identify areas of the Polish economy that may in future draw growing interest of venturecapitalinvestors. Thereflectionsarebasedontheidentificationofthe levelanddirectionsofinvestmentofventurecapitalfunds inPolandagainstthebackgroundoftheEUcountries.The analysisperiodcoverstheyears2008-2015.Againstthis background,theessenceofthechangesthatareemerging andthechancetobecomeactiveonthePolishmarket is presented. The essence of demographic change, the processofglobalizationandtechnologicaladvancement oflifehavebeentakenintoaccount.Itisbelievedthatthey formasystemofconnectedvesselsandarethesourceof theevolutionofconsumerpreferencesandexpectations towardsthelevel(ofhigherquality)oflife.Asaresult, they will determine areas of investment attraction for venturecapitalfunds. Venture capital - the essence of economic development With the increasing demand and the growing expectations of the market, entrepreneurs are striving forgrowthbyseekingbetterandmoremodern,risky,and innovativesolutions.Findingthesenewattractiveareasis amustinordertomeetthedemandsoftheenvironment. Ubiquitouscompetitionforcestheentitiestocontinually searchforsourcesofcompetitiveadvantage.Asaresult, companiesareconstantlylookingfornewopportunities thatgeneratehighfinancialcosts.Oneofthesourcesof capitaltofinancenewventuresisventurecapitalfunds. They are an essential part of the process of creating innovation, which is cited as an important factor in economic growth. These institutions deal with risky businessesintheearlystagesofdevelopmentorinthe early stages of the market. In this concept they also investintheidea(seed),sointhebusinessconceptitself toexplorethepossibilitiesofitscommercialization.We canalsofindthetermventurecapitalasanexperimental fieldfortheentireprivateequitysector1,becauseventure capital investments support new businesses, including innovative ones (Sieradzan & Sobańska, 2004, pp. 13– 14;Hass,Laffer&Pryor,2009,p.293).JerzyWęcławski introducedoneofthefirstdefinitionsoftheventurecapital conceptinPolishliterature.Itdefinesventurecapital“as 1 AccordingtotheterminologyusedbytheEuropeanAssociation ofPrivateEquity/VentureCapitalAssociation(EVCA-EuropeanPrivate Equity&VentureCapitalAssociation),privateequityreferstomedium- orlong-termcapitalprovidednon-listedcompaniesonthecapitalmarket,andtheserviceofachievingprofitsthroughgrowthinthevalueof thecompany.EVCAfurtheroutlinesthegoalsprivateequitycanprovide. Wecanmentionherethedevelopmentofnewproductsandtechnologies,theincreaseofworkingcapital,acquisitionfinancing,theimprovementofthecompany’sbalancesheetaswellasthesolutionofownershipandmanagerialproblems.Venturecapitaliscloselylinkedtoearly stagefinancingandexpansionandisconsideredapartofprivateequity. Thereisalsoahighriskofthistypeoftransaction,whichiscompensated byanabove-averageexpectedrateofreturnoninvestedcapital,(Drewniak,2013,p.51)
Katarzyna Wierzbicka, Anna Gardocka-Jałowiec Analysis of the attractiveness of the Polish market for venture capital funds www.e-finanse.com University of Information Technology and Management in Rzeszów 17 „e-Finanse” 2017, vol. 13 / nr 3 equityforalimitedperiodoftimebyexternalinvestors tosmallandmedium-sizedenterpriseswithaninnovative product,methodofproductionorservicethathasnotyet beenverifiedbythemarketandthereforeposesahigh riskofinvestmentfailurebut alsosuccess.TheProject, assisted in the management by investors, provides a significantincreaseinthevalueofinvestedcapital,which isrealizedbythesaleofshares“(Węcławski,1997,p.17). Venture capital funds, which are extremely important, act as a financial intermediary between a capital investor and a capital company, which is an investmentandthereforenotadirectinvestor,butasa specializedunitintheservicingofsmallandmedium-sized capital companies with high growth potential and high risk.Anotherimportantfactorintheoperationofventure capital is filling the so-called capital gap in financing innovativeenterprises.Venturecapitalfundsarebetterat overseeinginnovativeprojectsthantraditional financial intermediaries.Theyarealsomoreinclinedtoinvestin riskybusinessventures. In summary, the distinguishing characteristics of venture capital investments distinguishing them from traditionalformsoffinancingare(Gladstone&Gladstone, 2002,pp.5-7): 1) early stages of the company’s development, includingitsestablishment, 2) highrisk, 3) managerialsupport, 4) non-publicnatureofthefinancedenterprises. Due to the low risk aversion and the provision of additional non-financial support (in management, in business networking), these funds are a particularly valuable partner for innovative businesses at certain stages of their development. From the innovation standpointofthewholeeconomy,theadvantageofthe funds is the quick and effective search on the market for the most promising young companies. The cyclical investments,concentratingonseveralselectedindustries (while failing to meet the investment opportunities of otherindustries)areadisadvantage.Inaddition-which isnotachargeagainstthefundsthemselves-theyare notasourceofcapitaltoreplacethestateinresearchand development spending. Venture capital funds are more widespreadinthosecountrieswherethereishigherR& D.Therearemoreattractiveeconomicinnovations,whose slightrefinementandcommercializationareachancefor thesefundstoexceedaboveaverageprofits. The availability of venture capital funds is also important, as a significant facilitation for the commercializationofriskybutpotentiallyverypromising business ideas. As mentioned above, they are financial intermediaries who receive shares in companies in exchangeforthefundstheyprovide,andtheirpotential increaseisthemainsourceoffunds(Czerniak,2010,p. 812). The successful venture capital fund’s investment cycleusuallyendswiththewithdrawalofcapitalthrough theintroductionofsharesinpubliclytradedcompanies,ie thesharesofthestockmarket(Metrick,2007,p.3). Among European countries, the earliest venture capitalmarketbegantodevelopintheUK(inthesecond halfofthefortiesofthetwentiethcentury).Incontinental Europe,thiskindoffundinghasbeenusedsincethe1960s. Thisdelaywasduetotherebuildingofeconomiesfrom wardamageandpoliciesbasedonstronginterventions in limiting the roleof the market. Industrial policy was Figure 1: Value of venture capital funds in Poland in 2008-2015 (% of GDP) 0,000 0,010 0,020 0,030 0,040 0,050 2008 2009 2010 2011 2012 2013 2014 2015 Source: European Private Equity Activity Statistics on Fundraising, 2015, Investments & Divestments, Invest Europe, https://www.investeurope.eu/media/476271/2015-European-Private-Equity-Activity.pdf
www.e-finanse.com University of Information Technology and Management in Rzeszów 18 „e-Finanse” 2017, vol. 13 / nr 3 Katarzyna Wierzbicka, Anna Gardocka-Jałowiec Analysis of the attractiveness of the Polish market for venture capital funds primarily aimed at supporting large and medium-sized enterprises while neglecting small businesses, which wereanaturalbaseforthedevelopmentoftheventure capital market. Social conditions, notably the greater traditionalism of European entrepreneurs, were also important. It was only a retreat from interventionism and the growing liberalization of European economies inthe1970sthatstimulatedthedynamicdevelopment ofmediumandsmallenterprisesandcreatedincentives fortherevivaloftheventurecapitalmarket.Atthesame time the progressive globalization of economic activity and greater openness to new financial instruments, as wellasincreasingcompetitionledEuropeancompanies to benefit more from funding by venture capital. The conditions for the development of the venture capital marketbegantodevelopwiththeprocessoftransforming the Polish economy from a centrally planned economy intoamarketeconomy. The effects of innovative activities that can be funded by venture capital funds have different uses and characteristics. This can be seen as a new product introducedbythecompany,anewproductionmethod, orevenincreasedjobsinanenterpriseapplying anew marketing strategy. Much depends on the economic situation of the country. Scandinavian countries, the United Kingdom, and Germany use funds to finance projectsattheinitialstagesofdevelopmentandatthe time of basic research, hypothesis building, which is differentfrinthesituationinPoland,whichusesventure capitaltofinance,forexample,distribution. Countries belonging to the European Union structures use available finances in a variety of ways. Indevelopedcountries,wherethecapitalmarkethasa long history of existence and strong support from the government,banklendingiscomplementarytoventure capital (Czerniak, 2010, p. 819), which is different for example,inPolandversusotherdevelopingcountries.In addition,countriesclassifiedinthegroupof innovating and technology-transferring economies (not belonging totheinnovators)spendlessthan1%ofGDPonR&D. Thisisadifferentsituationforhighlydevelopedcountries (innovators),wheresuchexpenditureisover2%ofGDP and even more than 3% in countries such as Sweden, Denmark,orGermany(Ciborowski,2016,p.56). Developed countries, as shown on the map, use funds in a dynamic way. The increase in investment in 2016incountriessuchasLuxemburgandFrancewasas highas29%,comparedtoPoland,Ukraine,Lithuaniaand Russia,wheregrowthwasonly0.4%. Figure 2: Value of venture capital in EU Member Countries in 2008-2015 (% of GDP) 0 0,05 0,1 0,15 0,2 0,25 0,3 0,35 0,4 0,45 0,5 Estonia Finland United Kingdom Latvia Netherlands Ireland France Lithuania Sweden Belgium Cyprus Portugal EU Denmark Hungary Croatia Austria Germany Luxembourg Spain Poland Italy Bulgaria Romania Czech Republic Slovakia Slovenia Greece Malta 2008 2009 2010 2011 2012 2013 2014 2015 Source: study based on European Private Equity Activity Statistics on Fundraising, 2015, Investments & Divestments, Invest Europe, https://www.investeurope.eu/media/476271/2015-European-Private-Equity-Activity.pdf).pdf
Katarzyna Wierzbicka, Anna Gardocka-Jałowiec Analysis of the attractiveness of the Polish market for venture capital funds www.e-finanse.com University of Information Technology and Management in Rzeszów 19 „e-Finanse” 2017, vol. 13 / nr 3 Meaning of venture capital funds in the market activity of Polish enterprises There is no universal method for generating innovation. The whole innovation process is based on the unique characteristics of each enterprise, the specific nature of the processes involved, and the dynamics of changes in the environment that generate newopportunitiesandchallenges.Manypro-innovation initiativesfail,andinnovatorshavedifficultyinintroducing breakthroughproductstothemarketorevenachieving goodresults.Amongthereasonsforthissituationarethe lackoffinancialcapital,erroneousanalysesandforecasts of market development or the low frequency of their execution.Barriersalsoincludethelackofaprofessional teamofemployeeswhocancreateproductsthatstand outinthemarket,lackofsubstantiveknowledge,contacts andrelationshipsinagivensector. Venturecapitalfundsarelookingforcompanieswith astrongteamofpeople,withqualifiedemployees,skills, competencies, adaptability and openness to change. They seek to capitalize on scalable projects capable of generatinghighrevenueinthenext3-5years.Theylook for entities that through their activities (manufactured goodsandservices)fillagaponthemarketandasaresult, provideaninternalrateofreturnontheinvestedcapital atthedesiredlevel.Theycombinetheexpectedfinancial benefitswiththeirowninvolvement,ietheyofferfunds for the purchase of machines, software, equipment, intellectual property protection and patent procedures athomeandabroadandprovidetheirownmanagement support, knowledge, contacts and relationships in the sectoraswellas assistanceinthe processof obtaining new business contracts. The indicated venture capital activity is significant due to the currently observed shortenedlifespanofproductsandconsequentlythelife oftheenterprise. Mostventurecapitalfundsareoptimisticaboutthe prospects for development on the Polish market. This attractivenessisseennotonlybytherateofdevelopment oftheeconomy,butalsobychangesintheexpectations of individuals and society. The sphere of consumption isbecomingmoreandmoreafactorofinnovationand social change, which generally takes on the dimension oflong-termprocesses.Theeffectsofthesechangesare theresultoftheactivityofpeople,thesocietyinvolvedin theprocessofcreatinginnovation.Thismeansthatthey aretheresultofcollaborativeactioninallstagesofthe activity,fromrecognitionofneeds,toimplementationof Graph 1: Value of venture capital funds in individual regions (% of total value, change % 2016-2015) Source: European Private Equity Activity Statistics on Fundraising, 2015, Investments & Divestments, Invest Europe, https://www.investeurope.eu/media/476271/2015-European-Private-Equity-Activity.pdf
www.e-finanse.com University of Information Technology and Management in Rzeszów 20 „e-Finanse” 2017, vol. 13 / nr 3 Katarzyna Wierzbicka, Anna Gardocka-Jałowiec Analysis of the attractiveness of the Polish market for venture capital funds theeffectsoftheprocessofproducinggoodsandservices, anddisseminationofeffects. At the end of the twentieth century, it became important to reach out to a broad group of customers bydesigningproductsandservices,i.e,targetedatthe recipient’s experience. The two decades of the 21st centuryaremarkedbythehighrateofchangeinconsumer tastes and preferences driven by the development of new information and communication technologies. Entrepreneurs, in order to stay on the market, must ensure their success should be characterized by farreachingflexibilityofoperationsallowingforcontinuous adaptation to the changing transformations. In this respect,thebasisof marketactivity is tohavea broad and up-to-date set of information. Meanwhile, Polish innovativecompaniesshowlowdiversificationofsources ofinformationforinnovation.Theiractivityisbasedmainly oninternalsourcesandknowledgeofothercompanies (Table1).Theyshowlittleinterestintheknowledgeand experienceofclients,institutionalsources,conferences, fairs and exhibitions. The reasons for this situation are asfollows:lackofappropriatelegalsolutionsregulating cooperation between the business and science sectors; lack of financial resources for such cooperation; failure toadapttheofferoftheseinstitutionstotheneedsof the business sector; lack of appropriate structures for managingresearchactivitiesforbusinesses,especiallyfor nationaluniversities. Lowinterestintheexpectationsandpreferencesof individualsandsocietiesbyPolishcompaniesistranslated into,diagnosedfromthebeginningofthe21stcentury, uncertaindemandforproposedinnovativesolutions.This is an important barrier that Polish entrepreneurs face, whichshouldbeseenasanopportunityandbenefitsthat venturecapitalistsexpect. Areas of attractiveness of the Polish market for venture capital funds Depictingthescenariosofthefuturedevelopment oftheeconomyandsocietyisadifficulttask,andhighly risky. It does not mean, however, that such attempts shouldnotbemade.Analysisofmarketchangesandtheir anticipationisthekeytomarketsuccess.The21stcentury aboundsinphenomenaandprocesses,variedindifferent dimensionsandcrosssections,withchangesintheforces wherenewindustriesemerge.Amongtheprocessesthat willcreateattractiveinvestmentareasforventurecapital funds are the following: an aging society, expansion of Table 1: Selected aspects of innovative activity of enterprises employing 10-49 people in Poland in 2011-2015 Specification 2011-2013 2012-2014 2013-2015 industrial enterprises service sector enterprises industrial enterprises service sector enterprises industrial enterprises service sector enterprises Enterprises which rated as the most beneficial co-opera- ti o n w i t h : other enterprises in the same enterprise group 18,9 26,3 16,4 26,1 15,6 40,9 clients 18,3 8,3 10,3 12,3 9 13 consultants 15,3 1,8 1,1 1,5 7,3 3,2 Expenditures on innovation activity in enterprises from funds of venture capital (current prices, in mln zl) 68 52 130,6 (2014) 62,5(2014) 106,5 (2015) 26,5(2015) -2013 -2013 * Own calculations as a difference between total expenditures on innovative activity and expenditures from own resources,statebudget,fromabroad,bankloans.Dataavailableforselectedyears:2013,2014,2015. Source: own elaboration based on: GUS, (2014). Działalność innowacyjna przedsiębiorstw w latach 2011-2013. Informacje i opracowania statystyczne; GUS, (2015). Działalność innowacyjna przedsiębiorstw w latach 2012-2014. Informacje i opracowania statystyczne, GUS, (2016). Działalność innowacyjna przedsiębiorstw w latach 2013-2015. Informacje i opracowania statystyczne
Katarzyna Wierzbicka, Anna Gardocka-Jałowiec Analysis of the attractiveness of the Polish market for venture capital funds www.e-finanse.com University of Information Technology and Management in Rzeszów 21 „e-Finanse” 2017, vol. 13 / nr 3 globalization,andtechnologicaladvancementofhuman life. Thephenomenonofanagingpopulationisaproblem ofglobaldimensions.Changingagestructurewillinfact lead to the intensification of generational differences, which will be a challenge for companies offering consumergoodsandservices.Polandisonthetopthirty demographically old countries in the world. Eurostat projections indicate that the share of people aged 65 yearsandolderinthestructureofthetotalpopulation willbe37,4%in2020(EU(28)–41,2%),-61,9%(more4 ppthanintheEU(28)–57,6%)in2050anditwillreachto 68,8%andwillbehigherby10,3pp.totheEUlevel(28) in 2060 (Eurostat, 2017). The increasing demographic agingwillbeaccompaniedbytheshiftingoftheactivity ofthepopulationfromthesphereofproductiontothe sphereofconsumptionandchangesinthestructureof theacquisitionofgoodsandservices.Increasingdemand will be seen for rehabilitation equipment, ergonomic furnitureandhouseholdappliances,newmobilephones, nursinghomesandcareservices(Mróz,2013,p.70).The demandforsocialservicessuchashealthcare,culture, andactiveformsofrecreationwillincreasedynamically. The inevitable “partner” of demographic change isandwillbetheprocessof globalization.Itwillfoster thedevelopmentofpolaropposites,iehomogenization and heterogeneity of consumption. Symbiosis and / or autonomyofindicatedbehaviorsofconsumerswillfulfill thewholesetofindirectattitudes(individualswillexpress the attitude of partial, selective adaptation of selected elementsoftheglobalculture).Acompromisebetween national,localandglobalvalueswillbeexacerbatedby theincreasingavailabilityoftheInternet,theemergence ofnewinformationandcommunicationtechnologies,and the expansion of e-commerceinfrastructure. Consumer behaviorsurveys,thatis,individualswhowanttomeet theneeds(feltandtriggeredbythemarket)functioningin bothrealandvirtualspace,willgainparticularimportance. AccordingtotheDigitalYearbookin2017,inJanuary 201715million.Poles(39%ofthetotalpopulation)used social media (over 0,5% of all global users), of which around12million(31%ofthepopulationand0,47%of theglobalpopulation)usedmobiledevices(anincrease of20%incomparisiontothebeginningof2016).Internet access through tablets, smartphones and other mobile devices increases the convenience of shopping, saves thetimeittakestomakethefinaldecisiontopurchase a product or service, and intensifies the activity of people learning and sharing, providing feedback on products and services. Consumers benefit from the abilitytocommunicatetheirexpectationsandpurchase preferences, levels of satisfaction and dissatisfaction withtheirpurchase,useoftheproduct,serviceleveland accompanyingservices.Accordingtoasurveyconducted bySWResearchfor LeroyMerlinPolska(Whatwillthe trade look like in 2025?, 2017 survey results), 40% of clients indicated that in 10 years they will contact the offer or eg. Internet communicators, and as many as 36%ofrespondentsprefersuchcontactmadebymobile applications.Over1/3oftherespondentsconsideredthat communicationwiththesellerbyface-to-faceisthemost important.Inthelightoftheabove-mentionedinevitable research it seems to be getting wider and more open to the multilevel and technologically different contact withthecustomer.Thesechangesarebeingfollowedby internationalnetworks,auctionsiteownersandresellers. Moreandmoremobileapplicationsarebeingaddedto mobiledevices(smartphones,smartphones,tablets)and created according to customer preferences. One of the reasonsfortheirincreasingimportanceisthedeliveryof personalized content. An increasing number of mobile consumerswilldemandtheoptimizationofthepurchase process.Asaresult,thepersonalizationofthedealswill increasingly be linked to the further development of micro-localization and geotargeting, that is, to capture more accurate information about customer behavior andlocationtomatchadsormessagestotheircurrent needsandwheretheyare.Atpresent,only7%ofPolish enterprises use geotargeting (Geotargeting, 2017). Investors should be encouraged to invest in Internet Things(IoT-InternetofThings).Itisestimatedthatthe valueofthePolishIoTmarketislikelytoreach$3,7billion in2018,andin2020to$5,4billionUSD.Itsdevelopment willbedrivenbyretailandconsumers.Nearly70%ofthe decisionmakersinthetradearealreadyreadytomake thechangesrequiredfortheIoTapplication. In addition to the challenges already facing Polish companies offering consumer goods and services, the interest of venture capital funds should focus on the development of treatment-oriented products and prophylaxis based on specialized medical knowledge. AccordingtothePwCreportpublishedin2016,“Patient in the digital world. So how new technologies change the market for medical services in Central and Eastern Europe?“thereisashiftinpatientpreferencesandtheir
www.e-finanse.com University of Information Technology and Management in Rzeszów 22 „e-Finanse” 2017, vol. 13 / nr 3 Katarzyna Wierzbicka, Anna Gardocka-Jałowiec Analysis of the attractiveness of the Polish market for venture capital funds health system requirements. Among them, significant fromthepointofviewoftheallocationofventurecapital fundsare: 1) opennesstotelemedicineservices-morethan60% ofpatientsinCentralandEasternEuropesaythattheyare interestedintelemedicineservicesbecausetheyreceive expertadvicequickly,avoidqueuesinpublichealth, 2) increasedinterestinusingvideoconferencing(up from10%to25%ofallteleconsultationsinjustoneyear), 3) growing interest in a personalized approach (ie tailored to the needs of the individual), including the willingnesstousenotonlyspecializedmedicalcarebut alsotheso-calledMedicalcare,suchasmedicalservices suchasdieticianadviceorpsychologists. AccordingtoJ.Werner,medicaldirectorofthe University Hospital in Essen, artificial intelligence will be the foundation of 21st century medicine (World of Knowledge,2017).Manyindicationsshowthatsoonthe doctorwillnotbesettinguphisowndiagnosis,butonly availabletotranslateandinterpretpatientdatacollected and analyzed by analytical apparatus, smartphones or fitnessbands.Asaresult,thesmartelectronicsmarket willgrowdynamically,itmeanswearables,thatis,devices thatreceivemedicaldataandthusmonitorhumanhealth (egwatchwithheartratemonitor)ortheproductionof biometricssuchasmonitoringthebasicfunctionsofthe body(forexampletheHexoskinbiometrict-shirtmonitors the frequency and volume of breathing, rhythm and variabilityoftheheart,andcaloriesburned).Therewillbe agrowingdemandformHealthapplications(forexample, healthmonitoring,routinephysiciancommunication,or emergencycalls). Summary TheinvestmentattractivenessofthePolishmarket will increase with the changes in the age structure of the population, the impact of the globalization process and the unwavering aspirations to improve thestandardofliving.Thedevelopmentofinformation technology (standardization and reliability), networks and telecommunications infrastructure (throughput, integration,availability)createsandwillexpandthelevelof cooperation(businesswithconsumersorphysicianswith patients),whichdoesnotrequirepersonalcontact.Asa result,theessenceofinterpersonalcontactwillbemultichannel, it means to enable people to simultaneously usethefixed,mobileandInternetplatforms.Itwillcover many areas of socio-economic life. Poland is and will be in the coming years an emerging market for highly developedeconomiesusingnewhightechnologiesata muchhigherlevel.Thedrivetochangethemodelofthe Polisheconomytoamoretechnologicallyadvancedone willbeconducivetothedevelopmentofthetechnological sector,whichhasasignificantimpactonthegenerationof newconsumerneedsaswellassolutionsforenterprises. Supplyanddemandsidemarketadaptationisachallenge and a source of future financial benefits, that’s why it should be considered attractive to venture capitalists. Poland has relativelyyoungventurecapitalmarkets, so thevalueofthiskindofinvestmentisstilllowerthanin WesternEuropeancountries.Inaddition,alargepartof familybusinessesinPolandarefacedwiththeneedfor succession,andthiscanbeafactorgeneratingdemand forventurecapitalfunds.