Venture capital development and innovations

Abstract

The development of an active and efficient venture capital (VC) sector, which provides finance for companies, especially innovative ones or operating in high-tech sectors, in their early stages, is becoming one of the main themes in public policy formation. The topic is of a significant importance for the countries, which have relied on “traditional” financial markets and institutions, because funding gap, which occurs between the financial needs of innovative and/or young companies and supply by stock markets or banks, is perceived as one of the major obstacles for the economic development based on knowledge. There is some evidence of a positive influence of venture capital on stable growth of economies and increase of employment (Botazzi, Da Rin, 2002; European Commission, 2003; OECD, 2001).[...]