Public Policy for Start-Up Entrepreneurship with Venture Capital and Bank Finance
38 Pages Posted: 28 Feb 2003
Date Written: January 2003
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