The Genesis of Venture Capital - Lessons from the German Experience

Becker, Ralf and Hellmann, Thomas (2005) 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, pp. 33-68.

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Abstract

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
Finance
Centre: Entrepreneurship Centre
Date Deposited: 14 Aug 2015 13:17
Last Modified: 22 Feb 2017 15:37
Funders: not applicable
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5444

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