capital

Is VC Growing More Concentrated or Dispersed?

Though Silicon Valley and New England still dominate the U.S. venture capital landscape, several other regions - whether through local initiatives or the natural evolution of the economy - have emerged as respectable national hubs of investment over the last decade. Some areas, like San Diego, have seen greatly expanded investments and have joined the top tier of venture markets as VC firms turned their attention toward biotech.
 

Venture Capital in Hawaii: An Assessment of Market Opportunities

The report presents the findings of a study of venture cpaital in Hawaii, that examined data on VC supply and demand, with particular attention to whether the Hawaii market offers opportunities for institutional investors. Secondary data suggests that Hawaii is broadly undercapitalized when it comes to venture and other business capital.

Patents, Thickets, and the Financing of Early-Stage Firms:
Evidence from the Software Industry

This report looks at the impacts of impact of patents, especially their influence on capital markets, and the authors find evidence that the extraordinary growth in patenting of software during the 1990s is associated with significant effects on the financing of software companies.

On the Return to Venture Capital

This paper provides a theory that explains the sizeable excess return to venture equity, and ties it to the high VC discount rates, i.e., to VC impatience. The theory is based on the shortage of venture capitalists (VCs). Since the VCs opportunity cost of dealing with a company is supporting a new profitable project, he is less patient with maturing firms than an ordinary entrepreneur would be. This may explain why VC-backed firms reach IPOs earlier than other start-ups and why they are worth more at IPO.