Venture Capital in Singapore

Abstract

In the last twenty years, venture capital has emerged as a key area of interest for both academic researchers and financial professionals. This rising interest is well aligned with the development of the venture capital industry both in the US and globally. Historically, the origin of the venture capital industry can be traced back to the early 1900s when venture capital firm, Charterhouse and other banks provided the first pool of venture capital in UK. Likewise, one of the world's largest venture capital institution, 3i, which is based in the UK started investing since the mid-1940s (Coopey and Clarke, 1995). Although the venture capital industry has its origin in the UK, by the end of 1960s, the USA began to assert its predominance in venture capital investment as compared to other countries worldwide. According to the Global Entrepreneurship Monitor (GEM) 2003 Study, US accounted for 65% (USD 21.2 billion) of the total classic venture capital invested domestically in 2002 as compared to the rest of the 28 GEM nations surveyed (35%, USD 11.2 billion).

Keywords: Venture Capital

JEL Classification: M13