Public Policy for Start-Up Entrepreneurship with Venture Capital and Bank Finance

Keuschnigg, Christian; Nielsen, Soren Bo

doi:10.2139/ssrn.382924

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Public Policy for Start-Up Entrepreneurship with Venture Capital and Bank Finance

38 Pages Posted: 28 Feb 2003

See all articles by Christian Keuschnigg

Christian Keuschnigg

University of St. Gallen – Department of Economics (FGN-HSG); CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR); Swiss Finance Institute

Soren Bo Nielsen

Copenhagen Business School - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

There are 2 versions of this paper

Date Written: January 2003

Abstract

This paper proposes and analyses a model of start-up investment. Innovative entrepreneurs are commercially inexperienced and can benefit from venture capital support. Only part of them succeed in matching with a venture capitalist while the rest must resort to standard bank finance. We consider a number of policies to promote entrepreneurship and venture capital backed innovation.

Keywords: Venture Capital Bank Finance, Matching, Moral Hazard, Public Policy

JEL Classification: D82, G24, G28, H24

Suggested Citation: Suggested Citation

Keuschnigg, Christian and Nielsen, Soren Bo, Public Policy for Start-Up Entrepreneurship with Venture Capital and Bank Finance (January 2003). Available at SSRN: https://ssrn.com/abstract=382924 or http://dx.doi.org/10.2139/ssrn.382924