Publication
Jul 2002
This paper discusses what conditions have to be fulfilled for liquid venture capital markets to emerge. The author uses a general equilibrium model and identifies two necessary conditions. She argues that venture capitalists' active involvement must add high value compared to the costs of management support and the number of high-technology enterprises demanding venture capital must exceed a critical level. Furthermore, the author explains how differences in financial and innovation systems affect these two conditions.
Download |
English (PDF, 24 pages, 226 KB) |
---|---|
Author | Andrea Schertler |
Series | Kiel Institute Working Papers |
Issue | 1119 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2002 Kiel Institute for the World Economy |