Venture capital funds collect funds from various investors (pension funds, private investors, state investment funds and others) and invest them in newly established and fast-growing companies (start-ups). Central and Eastern Europe, the so-called CEE region (Central and Eastern Europe) is an area of Europe that has seen significant growth and development of venture capital funds in recent years. Although the venture capital investments of Central and Eastern Europe do not make up a large share in Europe (about 3%), they are very important for stimulating the development of entrepreneurship and the economy of that region. The CEE region is very attractive for investors due to the various advantages it offers, such as high availability of quality and educated employees, convenient geographical areas, well-developed infrastructure, tax systems and high levels of innovation, especially in technological areas. The Czech Republic, Estonia and Hungary are examples of countries in Central and Eastern Europe that have the most developed venture capital markets, and Croatia is well on its way to becoming one of them. The aim of the thesis is to clarify the working methods of venture capital funds, its specificities in the area of Central and Eastern Europe, i.e. to research and analyze their market, to point out the importance of the development of this area, but also the potential it has in the further development of entrepreneurial (start-up) scene in Europe. The methodology for achieving the subject and objectives of the work will be research based on the collection of data from secondary sources. Secondary data sources mean books, professional and scientific articles, and relevant internet databases dealing with this topic.