Israel is one of the world's leading countries in attracting venture capital, which has largely determined Israel's success in building an innovative economy. This study analyzes the dynamics of ...venture capital investment in Israel from 1991 to 2021 and assesses the correlation between the level of such investment and the level of foreign direct investment, as well as the impact of venture capital investment on the growth of the technological sector of GDP. It is revealed that venture capital investment stimulates the growth of the high-tech sector of Israel’s GDP, and this provides a cumulative positive effect on other sectors of the economy. The stimulating effect of venture capital investment is reflected in an increase of exports of goods and services, citizens’ incomes and the growth of the country’s GDP. The relevance of the topic of the article is confirmed by the immediacy of the problem of attracting venture capital in the Russian Federation and in most developing countries of the world: for them, there is an objective need to resolve the issues related both to the state policy in the field of attracting venture capital and to the creation of infrastructure for the development of the technological innovation sector of the economy.
Russia’s private equity and venture capital industry is in the early stages of development. In 2011 the Federal Law on Investment Partnership (335-FZ) was enacted. It brought the best international ...practices of collective investments into the Russian legal system by making it possible to create venture capital funds through investment partnership. This particular type of funds is the closest in substance to the most popular legal form of globally known venture capital funds which is a limited liability partnership. Significant progress has been made so far in reforming the Russian system of accounting and financial reporting under the IFRS. However, the existing regulations have not been amended to (capture) incorporate accounting and reporting of financial investments, and proper templates for disclosure and reporting by investment partnership funds have not been worked out. The aim of the article is to develop suggestions and recommendations to enhance domestic model of information disclosure by venture capital funds formed under investment partnership agreements. Researching the international practices of disclosure by venture capital funds created as limited liability partnerships allowed to devise financial reporting templates that can be used by domestic venture capital funds formed under investment partnership agreements. These templates proposed in this piece of research can serve as the basis for future industry standards of financial accounting in Russia.
Early-stage small- and medium-sized enterprise (SME) cleantech innovation, if properly funded, can initiate disruptive low-carbon reduction impacts across a wide range of sectors to meet climate ...change net zero requirements. The role of venture capital (VC) finance in successfully commercializing new technologies remains contentious, particularly where socio-environmental returns may well be greater than the economic returns that are the exclusive captures of the investors. This article addresses a pertinent question facing government policymakers: how best to support VC to achieve climate change objectives? It focuses on the supply-side policy, design, and implementation of four U.K. government-backed venture capital funds (GVCFs) at various stages of their development. A systems framework and an absorptive capacity learning lens inform a grounded qualitative methodology, spanning a decade of over 100 in-depth interviews with policymakers, fund managers (private and public), alternative finance providers, and low-carbon finance market experts. A model is developed to assess GVCF learning evolution to address the nascent early-stage precommercialization cleantech venture investment market. This avoids the pitfalls of quantitatively analyzing the investment outcomes of these long-horizon investment funds prior to their completion by providing qualitative process findings that inform policy, practice, and theory in the evolving early-stage low-carbon GVCFs.
This study evaluates the policy objectives and efficacy of government venture capital funds (GVCs) on the performance of invested entrepreneurial ventures. Analyzing data from China on GVCs, private ...venture capital funds (PVCs), and foreign venture capital funds (FVCs), it reveals that GVC-supported firms surpass those backed solely by domestic PVCs in R&D investment, return on assets (ROA), Tobin's Q, and corporate social responsibility metrics. Acting as government stewards, GVCs effectively fulfill policy goals. Moreover, GVC-backed ventures attract more venture capital following their lead and achieve higher one-day returns at IPOs compared to firms backed solely by private VC funds.
•Entrepreneurial firms backed by GVCs will increase R&Ds investments more than that of the non-VC-backed firms while the effect of GVCs on R&Ds is stronger than those firms backed by PVCs.•Entrepreneurial firms backed by GVCs will increase ROA and Tobin's Q more than the non-VC-backed firms and the firms backed by PVCs.•Entrepreneurial firms backed by GVCs will increase their CSR more than the non-VC-backed firms and the effect of GVCs on CSR is stronger than those firms backed by PVCs or FVCs.•Firms backed by GVCs attract more other VC funds to invest in them and generate a larger first-day return at the initial trading day than that of the firms backed by FVCs and PVCs.
Subject and purpose of work: The main issue of the work is to present the essence of venture capital, i.e. Venture Capital funds and Private Equity funds. The aim of the article is to indicate the ...size of the share and the role of funds in financing enterprises located in Poland. The time horizon of the presented data covers the years 2012-2019. Materials and methods: The material for analysis is available statistical data, reports of commercial companies and other entities researching the size of the Venture Capital and Private Equity sector in Poland. For the purposes of the study, the literature on the subject was used as well as the data of: Narodowy Centrum Badań i Rozwoju, KPMG Sp. z o.o., the State Development Fund, the Startup Poland Foundation and the European Association of Venture Capital and Private Equity Investors. The method of analysis and criticism of the literature and the method of examining documents were used. Results: The research carried out in Poland makes it possible to assess the size of the implemented venture capital investments, i.e. VC and PE funds, over the years 2012-2019. The presented data indicate that the share of funds in financing Polish enterprises has a variable tendency. The percentage share of VC and PE investors in Europe in 2017-2018 is also variable. Conclusions: The Polish economic market is an attractive investment area in terms of cash allocation needs by venture capital funds. Increasing awareness of enterprise managers about the benefits of using these capitals to subsidize the activities of entrepreneurs allows them to discount VC and PE funds in innovative startups and in other processes, the implementation of which takes place in further phases of the company's operations. The studies conducted so far cover the entire territory of Poland and are of an overview nature. The VC and PE funds, which are a new financial instrument, allow Polish enterprises to implement innovative projects.
The main issue of the work is to present the essence of venture capital, i.e. Venture Capital funds and Private Equity funds. The aim of the article is to indicate the size of the share and the role ...of funds in financing enterprises located in Poland. The time horizon of the presented data covers the years 2012-2019.
The material for analysis is available statistical data, reports of commercial companies and other entities researching the size of the Venture Capital and Private Equity sector in Poland. For the purposes of the study, the literature on the subject was used as well as the data of: Narodowy Centrum Badań i Rozwoju, KPMG Sp. z o.o., the State Development Fund, the Startup Poland Foundation and the European Association of Venture Capital and Private Equity Investors. The method of analysis and criticism of the literature and the method of examining documents were used.
The research carried out in Poland makes it possible to assess the size of the implemented venture capital investments, i.e. VC and PE funds, over the years 2012-2019. The presented data indicate that the share of funds in financing Polish enterprises has a variable tendency. The percentage share of VC and PE investors in Europe in 2017-2018 is also variable.
The Polish economic market is an attractive investment area in terms of cash allocation needs by venture capital funds. Increasing awareness of enterprise managers about the benefits of using these capitals to subsidize the activities of entrepreneurs allows them to discount VC and PE funds in innovative startups and in other processes, the implementation of which takes place in further phases of the company’s operations. The studies conducted so far cover the entire territory of Poland and are of an overview nature. The VC and PE funds, which are a new financial instrument, allow Polish enterprises to implement innovative projects.
Why do regional governments establish venture capital funds? Government intervention in venture capital markets is traditionally legitimised by market failure rationales. In this paper, we analyse ...the supply of public and private venture capital in Dutch regions, which reveals a multiplicity of rationales for government intervention in the regional economy. We ground this in the policy diffusion literature and distinguish four rationales for government intervention: economic competition, coercion, imitation and learning. The findings enrich the analysis of regional government interventions and challenge the rhetoric that regional policies seeking to foster venture capital markets are solely implemented to address market failures.
Venture capital funds in transition countries Hisrich, Robert D.; Petković, Saša; Ramadani, Veland ...
Journal of small business and enterprise development,
05/2016, Letnik:
23, Številka:
2
Journal Article
Recenzirano
Purpose
– The purpose of this paper is to focus on the possibilities and limitations of venture capital formation in Bosnia and Herzegovina and Macedonia where there has been a lack of success and ...benefits of small- and medium-sized enterprises (SMEs) from this type of financing.
Design/methodology/approach
– The paper provides a rationale for specific methodological choices and justifies its choice. Both quantitative and qualitative methods were employed. The methods section (research design) explains the entry criteria for the study population, specific imaging techniques and methods of data analysis.
Findings
– Venture capital invest in companies in the beginning to achieve an above average return on investment. Unfortunately, there are no officially registered venture capital funds in Bosnia and Herzegovina. For the venture capital funds to operate, it is necessary to adopt regulations governing this area, to create a favorable tax system and introduce a cash basis for VAT calculation for SMEs. The majority of respondents in the research believe that in the establishment of venture capital funds would provide one of the greatest supports by the governments of these countries, analyzing the economic situation in these countries, it is apparent that there is an under-developed legal and tax system, which does not support SMEs. In order to attract foreign and domestic investors, and form venture capital funds, it is necessary to create a favorable business environment.
Originality/value
– The paper contains novel information and insight into VC funds in two transition economies of Bosnia and Herzegovina and Macedonia.
FINANCIAL PROVISION OF RUSSIAN ECONOMY MODERNIZATION Igor A. Yeremenko; Elena N. Rudskaya
Vestnik Donskogo gosudarstvennogo tehničeskogo universiteta (Online),
07/2018, Letnik:
12, Številka:
4
Journal Article
Recenzirano
Odprti dostop
The use of budget funds, direct investment funds, and venture capital funds as the major sources of the modernization financial assets is analyzed. General financial instruments for stimulating the ...Russian economy modernization are specified.
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