Governmental Venture Capital for Innovative Young Firms

19 Pages Posted: 26 Jul 2014 Last revised: 20 Nov 2014

See all articles by Massimo G. Colombo

Massimo G. Colombo

Politecnico di Milano

Douglas J. Cumming

Florida Atlantic University

Silvio Vismara

University of Bergamo

Date Written: July 25, 2014

Abstract

Governments around the world have set up Governmental Venture Capital (GVC) funds, and are increasingly doing so, with the aims of fostering the development of a private venture capital industry and to alleviate the equity capital gap of young innovative firms. The rationale and the appropriateness of these programs is controversial. In this paper, we borrow from the recent literature on entrepreneurial finance to document the evolution and to compare the effects of the different types of governmental support. In contrast with a lack of success in some countries, there have been successful GVC initiatives, such as the Australian Innovation Investment Fund. Consequently, the proper design of the investment processes of GVC funds is an urgent topic for scholars and policy makers.

Keywords: VC, GVC, intervention, entrepreneurial finance, IPOs

JEL Classification: G30

Suggested Citation

Colombo, Massimo G. and Cumming, Douglas J. and Vismara, Silvio, Governmental Venture Capital for Innovative Young Firms (July 25, 2014). Journal of Technology Transfer, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2471469 or http://dx.doi.org/10.2139/ssrn.2471469

Massimo G. Colombo

Politecnico di Milano ( email )

Piazza Leonardo da Vinci, 32
20113 Milan
Italy

Douglas J. Cumming

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Silvio Vismara (Contact Author)

University of Bergamo ( email )

Via Marconi 5
24044 Dalmine, Bergamo
Italy
00390352052352 (Phone)
0039035562779 (Fax)

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