This is the course of action that Vladimir Dolej , the director and former co-owner of the travel agency Globtour from Prague chose. Globetour was recently merged with the Slovenian Autocommerce, bringing along capital and contacts in hotels, crediting institutions, transport companies and tourist agencies all over the World. Most successful Czech companies are limited in their further development by the lack of capital required for modernisation of equipment, research activities, development, advertising and aggressive marketing. This especially affects small and medium size enterprises. Unfortunately, these funds, which were originally set up in the USA after 1945, and which were soon after accepted in the financial world, will only finance a carefully chosen group of entrepreneurs - those who have new projects and promise fast development.
Funds mainly invest in private firms.
They increase their capital base, they contribute to their development and prosperity. After five to seven years they sell their shares - the value of which have considerably increased in the meantime. Formally there are venture capitalists in the Czech Republic, but the funds which are associated in the Czech Association of Venture Capital declared only 62 investments at the end of 1997, out of which only13 financed newly established companies. Even though it is supported by the Czech Chamber of Commerce and by numerous leading economists, who believe it will encourage faster investment of venture capital in promising new companies by offering to guarantee them, it receives no real support. Even though he says he does not know of such a branch of business, he allows it could happen in the sphere of commerce.