The Impact of the Interest Rate on the Level of Acquired Capital and Investments by Venture Capital Funds and Private Equity Funds on the Polish Market

Abstract

Venture capital funds and private equity funds are classified in the financial market as an alternative investment. The cycle of high-risk investment funds consists of three main successive phases. The first one is to raise funds from investors and then invest them actively. The level of invested funds collected and is influenced by many factors, among which the most important seems to be the degree of development of the capital market, the historical rate of return of funds and the market rate. The aim of the article is to analyze the influence of changes in the reference interest rate in the period 1998-2013 on the Polish market to the level obtained and invested funds through venture capital funds and private equity funds.