arbiter
JournalsPricingAccount

Where is the EXIT? – The Exit Characteristics of Venture Capital Through the Case of Hungarian JEREMIE Investments

BALÁZS FAZEKAS & PATRÍCIA BECSKY-NAGY

Montenegrin Journal of Economics2026https://doi.org/10.14254/1800-5845/2026.22-2.4article
AJG 1
Weight
0.50

What the paper says

For developing markets, including those in the Central and Eastern European region, the available data on the venture capital sector at the investment level are rather limited.While surveys on investment activity and capital outflows are becoming more comprehensive, the study of firm-level effects, in particular exits, is considered a major research gap.Using one of the most active venture capital markets' example in the region, this paper examines the exit characteristics of firms in the region by exit type, as well as the main financial characteristics that influence each exit method.Our analysis is based on a unique hand collected dataset covering the entire population of the Hungarian JEREMIE investments including the data from 340 companies that received funding between 2010 and 2016.The approach includes a detailed assessment of key financial metrics, such as revenue growth, to understand their impact on exit events.Firms are classified into three categories based on exit mode, which are sale to 3rd party, manager buy-back and failed exit.Logit models were used to examine the factors influencing each exit mode.Our results show that among the financial characteristics, rapid revenue growth is considered to be the most important success factor, while financial characteristics can explain exit types only to a small extent.Due to the significant regional state involvement, the characteristics of exit types do not necessarily coincide with the exit patterns of traditional market-based investments despite of the hybrid investment strategy.The study addresses a significant research gap concerning firm-level effects, particularly exits, in the venture capital sector of the Central and Eastern European region.Due to significant state involvement, the characteristics of exit types do not necessarily align with those of traditional market-based investments.This discrepancy underscores the differences inherent in hybrid investment strategies and emphasizes the unique economic context of the region.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.14254/1800-5845/2026.22-2.4

Or copy a formatted citation

@article{balázs2026,
  title        = {{Where is the EXIT? – The Exit Characteristics of Venture Capital Through the Case of Hungarian JEREMIE Investments}},
  author       = {BALÁZS FAZEKAS & PATRÍCIA BECSKY-NAGY},
  journal      = {Montenegrin Journal of Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.14254/1800-5845/2026.22-2.4},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Where is the EXIT? – The Exit Characteristics of Venture Capital Through the Case of Hungarian JEREMIE Investments

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.