Abstract

http://ssrn.com/abstract=875884
 
 

References (32)



 
 

Citations (1)



 


 



Temporal Comparative Analysis of the US Venture Capital Industry Over 1980 to 2002


Avi Messica


Colman College of Management

Tamir Agmon


Gothenburg University - School of Business Economics and Law

January 13, 2006


Abstract:     
We hypothesize that supply and demand shifts occurred in the US venture capital (VC) industry during 1980 to 2002 and present the results of an empirical study about the temporal characteristics of the industry during that period. Our main conclusion is that the VC industry has gone under fundamental transformation in the early 1990s when pension funds started to significantly invest in the sector. As a result, since the early 1990s, the US VC industry has transformed into a supply-driven market. We estimate that even after the bubble burst, the VC industry is still inflated and predict degraded future returns. Moreover, we project that if pension funds, such as CALPERS and the like, and other institutional investors will further increase their allocation for venture capital investments it will turn out counterproductive and further degrade the performance of the VC industry in view of the limited pool of fundable deals.

Number of Pages in PDF File: 26

Keywords: Venture Capital, Supply and Demand, Temporal, Comparative Analysis

JEL Classification: G23, G24, G28, G31, G32, M13,O16, O32

working papers series


Download This Paper

Date posted: January 16, 2006  

Suggested Citation

Messica, Avi and Agmon, Tamir, Temporal Comparative Analysis of the US Venture Capital Industry Over 1980 to 2002 (January 13, 2006). Available at SSRN: http://ssrn.com/abstract=875884 or http://dx.doi.org/10.2139/ssrn.875884

Contact Information

Avi Messica (Contact Author)
Colman College of Management ( email )
7 Yitzhak Rabin Blvd.
P.O.B 25073
Rishon Lezion 75190
Israel
+972-3-963-4013 (Phone)
+972-3-963-5776 (Fax)
HOME PAGE: http://www.colman.ac.il
Tamir Agmon
Gothenburg University - School of Business Economics and Law ( email )
Vassagatan 1,
Gothenburg
Sweden
Feedback to SSRN


Paper statistics
Abstract Views: 3,234
Downloads: 649
Download Rank: 21,406
References:  32
Citations:  1
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.484 seconds