Venture Capital Funds in Albania – Is it the Right Time to Show Up? - Economicus

by. Dr. Eugen MUSTA & Prof. Asoc. Dr. Elvin MEKA

Abstract

In the age of innovation and technology, there is a lot of attention put into start-up business ideas. This is no surprise considering the great and unbelievable changes that happened in the last 50 years, because of companies like: Microsoft, Apple, Google, Amazon, Facebook (just to mention a few), all of which started as “garage” start-ups. What made it possible for these start-ups to make it though was not because they started small out of garages, but because they were able to find financing from Venture Capital and Private Equity funds. Private Equity capital and especially Venture Capital funds are a crucial part of the start-up ecosystem as they specialise in providing financing to start-up companies and small businesses that are believed to have long-term growth potential and thus their presence in the economy promotes entrepreneurship, improves borrowing and also can strengthen the capital market. Even though there have been some PE initiatives in Albania, for the time being, there are no established PE or VC funds. However, with recent years’ attempts to establish a functional capital market and with the prospective changes made to the legal framework, regarding the regulation and support for innovative start-ups, etc. may be the time is right for us to witness the birth of Private Equity/Venture Capital Funds.

How to cite: Musta, E., & Meka, E. (2021). Venture Capital Funds in Albania – is it the right time to show up? Economicus, 20(2), 81–93.

https://doi.org/10.58944/ihnf2766