The INFLUENCE OF FINANCIAL MARKETS ON INVESTMENT IN VENTURE CAPITAL
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This paper examines the influence of financial markets on the investment in venture capital. It highlights the evolution of the number of exit of U.S. venture capital companies in financial markets as ...
This paper examines the influence of financial markets on the investment in venture capital. It highlights the evolution of the number of exit of U.S. venture capital companies in financial markets as well as the European one. Moreover it sheds the light the simultaneous evolutions of fund raising of venture capital and stock indexes in the U.S and Europe. The study focuses on a range of data on US and European venture capital firms covering the period of 1984 to the first quarter of 2012. It relies on the VentureXpert private equity and venture capital performance database, maintained by Thomson Financial data for American Venture Capital markets, and Chausson finance indicator for French venture capital market. It also considers developments in the venture capital markets in Europe and the United States. Indeed our analysis shows that favourable anticipations of Initial public offerings, synonyms for significant capital gains for venture capitalists, are key incentives for the venture capital market. However, when considering the recent investment behavior of European venture capitalists, the relationship between financial markets and venture capital activity is much less clear: the invested amounts seem to be significantly and permanently disconnected from the
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