1. Venture Capital and Growth.
- Author
-
Manigart, Sophie and Sapienza, Harry
- Subjects
VENTURE capital ,ENTREPRENEURSHIP ,CORPORATE growth ,SMALL business finance ,ECONOMIC development ,PRIVATELY placed securities ,MACROECONOMICS - Abstract
This paper reviews the literature concerning the impact that venture capital investments have on economic growth, mainly focusing on the firm level. The authors consider new insights gained in the 1990s as well as North American and European practices. The authors provide an overview of recent explanations for the existence of venture capital and explore the impact of formal venture capitalists on growth and thus exclude informal or private investors. The authors summarize trends in venture capital in the United States and Europe, stressing the impact of government initiatives on macroeconomic growth. The authors conclude with theoretical progress made in venture capital research and offer suggestions for paths to take in the future.
- Published
- 2000