The ‘New’ Venture Capital Cycle and the Role of Governments: The Emergence of Collaborative Funding Models and Platforms

Lex Research Topics in Corporate Law & Economics Working Paper No. 2013-7

Tilburg Law School Research Paper No. 021/2013

39 Pages Posted: 22 Nov 2013 Last revised: 2 Nov 2014

See all articles by Janke Dittmer

Janke Dittmer

Gilde Healthcare

Joseph A. McCahery

Tilburg University - School of Law; European Banking Center (EBC); Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI)

Erik P. M. Vermeulen

Tilburg University - Department of Business Law; Signify (formerly known as Philips Lighting) - Legal Department; Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI); Kyushu University - Graduate School of Law

Date Written: November 20, 2013

Abstract

This paper examines recent trends in venture capital fundraising and investments. We find that the emergence of ‘new’ types of investors, such as crowdfunding platforms, super-angels and corporations, during this period may explain the changes in the venture capital model. Importantly, the new investment pattern emerges as a result of the increasing collaboration between new entrants, venture capitalists and partner industries. Our findings suggest that governments should take these trends and developments into account when deciding on how best to stimulate business growth and innovation.

Keywords: AngelList, corporate venture capital, crowdfunding, entrepreneurship, funding gap, government venture capital, innovation, IPOs, liquidity gap, super-angels, venture capital

JEL Classification: G01, G24, G32, K20, K22, L22, L26

Suggested Citation

Dittmer, Janke and McCahery, Joseph A. and Vermeulen, Erik P.M., The ‘New’ Venture Capital Cycle and the Role of Governments: The Emergence of Collaborative Funding Models and Platforms (November 20, 2013). Lex Research Topics in Corporate Law & Economics Working Paper No. 2013-7; Tilburg Law School Research Paper No. 021/2013 . Available at SSRN: https://ssrn.com/abstract=2357771 or http://dx.doi.org/10.2139/ssrn.2357771

Janke Dittmer

Gilde Healthcare ( email )

Newtonlaan 91
Utrecht
Netherlands

Joseph A. McCahery

Tilburg University - School of Law; European Banking Center (EBC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands
+31-(0)13-466-2306 (Phone)
+31-(0)13-466-2323 (Fax)

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Erik P.M. Vermeulen (Contact Author)

Tilburg University - Department of Business Law ( email )

Signify (formerly known as Philips Lighting) - Legal Department ( email )

Amstelplein 2
Amsterdam
Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Kyushu University - Graduate School of Law ( email )

6-19-1, Hakozaki, Higashiku
Fukuoka, 812-8581
Japan

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