Misinforming the Public About Public Policy Towards Venture Capital
Douglas J. Cumming
York University - Schulich School of Business
October 31, 2010
Venture Capital: An International Journal of Entrepreneurial Finance, Forthcoming
Recent work by Da Rin et al. (2006, 2011) and Lerner (2009) base their analysis of the effect of public policy towards venture capital on variables like the ratio of early stage to late stage investment. This paper provides an explanation as to why such measures are incorrect for studying the effect of public policy towards venture capital, regardless of whether one is interested in comparing venture capital investment across countries or comparing venture capital investment over time within a country. One should be extremely cautious about drawing public policy lessons for venture capital based on work that use these inappropriate measures.
Number of Pages in PDF File: 4
Keywords: Venture Capital, Public Policy
JEL Classification: G24, G28, H25
Date posted: November 9, 2010
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