Publication

This paper discusses Europe's experience with venture capital in the 1990s. The author argues that individual countries' activity is not solely determined by country characteristics but also by the common European experience with the interdependence of valuations in primary equity markets. He holds that each country must seek to improve the efficiency of its venture capital sector. To look at the relative efficiency of individual venture capital organizations and their learning process over time the author considers initial public offerings backed by venture capital providing the appropriate window.