Towards a Global Model of Venture Capital?

45 Pages Posted: 25 Nov 2002

Abstract

This paper examines whether a truly global market for venture capital and private equity is emerging or whether the current situation of segmented national markets is likely to endure. We document very rapid growth in venture capital fund raising and investment over the past decade in the United States, Western Europe and in certain Asian countries, but not in Japan or in most developing countries. We compare contracting practices, investment patterns and returns between the U.S. and Europe, and find that there has been considerable convergence between these two large VC markets, particularly during the past five years. This convergence is likely to continue. Nonetheless, we conclude that the major national markets will remain effectively segmented and suggest that venture capital will continue to be much more important in common law countries than in civil law countries for the foreseeable future.

Keywords: venture capital

JEL Classification: G15, G24

Suggested Citation

Megginson, William L., Towards a Global Model of Venture Capital?. Journal of Applied Corporate Finance, Vol. 16, No 1, Winter 2004. Available at SSRN: https://ssrn.com/abstract=321962 or http://dx.doi.org/10.2139/ssrn.321962

William L. Megginson (Contact Author)

University of Oklahoma ( email )

307 W Brooks, 205A Adams Hall
Norman, OK 73019
United States
(405) 325-2058 (Phone)
(405) 325-1957 (Fax)

HOME PAGE: http://faculty-staff.ou.edu/M/William.L.Megginson-

Register to save articles to
your library

Register

Paper statistics

Downloads
1,521
Abstract Views
4,938
rank
11,467
PlumX Metrics