capital

The report provides a brief overview of the evolution and present structures of the VC industry in Finland, and draws attention to factors that affect the development of VC industry, among others, to the nature of policies pursued in this field. It has been prepared as a background report for a project entitled Venture Fun, carried out in an EU Network of Excellence PRIME and funded from the Sixth Framework Programme.

The authors explore the relationship between fiscal rules and capital budgeting. The current budgetary approach to limit deficits to a fixed portion of GDP or to balance budgets could undermine incentives to invest in public capital with long-run returns since politicians concerned about electoral prospects would favor expenditures providing immediate benefits to their voters, according to the authors.

The study finds that while domestic corporations are strongly influenced when selecting strategic alliance partners by firms recent patent activities, foreign corporations appear to be more influenced by the location of the firm. The results provide evidence that foreign and domestic alliance capital inflows are driven by different factors.

This paper examines the profitability of venture capital investment in Europe and the United states. It highlights the unfavourable profitability differential of European venture capital investment in comparison with the United States. The investment performance measures used are the internal rate of return and investment multiples.

This paper examines the profitability of venture capital investment in Europe and the United states. It highlights the unfavourable profitability differential of European venture capital investment in comparison with the United States. The investment performance measures used are the internal rate of return and investment multiples.

Despite increased financial power and wealth, high net worth women represent a largely untapped source of capital for start-up entrepreneurs, according to the Kauffman report on women angel investors. The report provides insights and recommendations from leading women angels on how to grow the pool of early stage equity by encouraging more women to be angels.

This fourth annual report on the state of the venture capital industry indicates that while in the near term in the US there will probably be continued reliance on both M&A and exploration of more innovative exit opportunities, improving market conditions and investor demand for venture-backed offerings are likely to result in increased venture-backed IPO activity in both the U.S. and Europe through 2006.

This report examines angel investing activity in Wisconsin in 2005, using data from the Wisconsin Department of Commerce and a survey by NorthStar Economics. It also examines reported angel investing by individual angels and by organized angel. Overall reported angel investing in Wisconsin in 2005 was over $19 million. Of this amount, approximately $14 million of angel investments came from individual angel investors and over $5 million came from organized angel groups.
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The authors document a somewhat surprising regularity: of the many countries that have used IPO auctions, virtually all have abandoned them. The common explanations given for the lack of popularity of the auction method in the U.S., viz., issuer reluctance to try a new experimental method, and underwriter pressure towards methods that lead to higher fees, do not fit the evidence. The authors examine why auctions have failed and verify, to the extent possible, that they are consistent with what academic theory predicts.

The author examines the impact of foreign portfolio investment on the financial constraints of small firms. Using a dataset of over 195,000 firm-year observations across 53 countries, the author examines the impact of foreign portfolio investment on capital issuance and firm growth across countries and firm characteristics, in particular size.