The Genesis of Venture Capital - Lessons from the German Experience

Becker, Ralf and Hellmann, Thomas (2004) The Genesis of Venture Capital - Lessons from the German Experience. In: Kanniainen, Vesa and Keuschnigg, Christian, (eds.) Venture Capital, Entrepreneurship, and Public Policy. CESifo Seminar Series . MIT Press, Cambridge, MA, pp. 33-68. ISBN 978-0262112871

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Why does venture capital work in some countries but not in others? This clinical study of the first German venture capital firm examines the difficulties of creating a venture capital market in a bank-based financial system. The analysis identifies the problem of creating appropriate
governance structures to protect investor returns. It exposes the difficulties of established banks - not to mention government - to devise venture investment strategies. It identifies the availability of high quality entrepreneurs as a critical complement. And it provides a reinterpretation of the hypothesis of Black and Gilson (1997), arguing that the existence of an active stock market is a necessary, but by no means sufficient condition for the development of venture capital.

Item Type: Book Section
Keywords: venture capital, finance
Subject(s): Entrepreneurship
Centre: Entrepreneurship Centre
Date Deposited: 14 Aug 2015 13:17
Last Modified: 26 Sep 2018 15:54
Funders: not applicable

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