The ‘Double Market’ Approach in Venture Capital and Private Equity Activity: The Case of Europe
ثبت نشده
چکیده
This paper aims to contribute to the understanding of the factors that determine fundraising and investment in the private equity market in Europe. These are analysed separately, since the lags faced in this activity determine the existence of two separate markets. As a result, private equity institutions deal with different agents, namely investors (fundraising) and firms (investment), whose link with the market is affected by different determinants. The results show that liquidity and the size of the local market are the main factors determining fundraising whereas liquidity and research and development expenditure determine investments in early stage firms.
منابع مشابه
Private Equity Returns and Disclosure around the World*
This paper studies the returns to venture capital and private equity investment based on a sample of 221 private equity funds that are managed by 72 private equity management firms, in 5040 entrepreneurial investee firms, and spanning 33 years (1971 – 2003) and 39 countries from North and South America to Europe and Asia. We make use of four main categories of proxy variables for value-added ac...
متن کاملVenture Capital in Europe’s Common Market: a Quantitative Description
This paper offers a quantitative description of European private equity markets and compares the recent development in these markets with the development of the US venture capital market. European markets for private equity vary considerably with respect to the investments in young high-technology enterprises, as well as with respect to the types of passive investors who invest capital in priva...
متن کاملReturns to Venture Capital
The returns to private equity investment have become a vexed issue, attracting widespread debate in the media, government, and among researchers. Much of the attention has focused on later-stage buyout investments, but there is a general move towards greater transparency and disclosure of the returns to both early and late-stage venture capital (VC) investments. Shortcomings in the information ...
متن کاملValuing a Private Equity Venture Investment: the Case of a B2b Marketplace Start-up
A great number of e-business investments is initiated by early stage companies – mostly financed by venture capital or private equity. Due to the sharp declination of stock prices of new economy companies in 2000 venture capitalists have realized that they have paid too high prices for their equity stakes. They have to admit that new economy market was driven by euphoria rather by fundamental v...
متن کاملVenture Capitalists Investment Incentives Under Public Equity Schemes
This paper analyses the impact of public equity schemes on venture capitalist’s incentives to finance start-up enterprises and to support the management teams. In a double-sided moral hazard model, it is shown that experienced venture capitalists, who have already financed start-up enterprises, reduce their intensity of management support under public equity schemes. However, public equity offe...
متن کامل