capital

The relationship between area differences in the levels of human capital and the subsequent differences in new firm start-up rates is examined in the paper. Findings indicate that new firm-start up rates are positively correlated with the number of adults who have college degrees and higher levels of existing establishments in the same industry and area sector.

The report discusses the Risk Capital Action Plan and indicates the year 2002 was a period of adjustment to the prolonged downturn. Investment in the U.S. is still double that of the European Union, the report indicates.

The report from the Science Council of British Columbia identifies levels of seed capital activity in BCs technology sector in 2001-2002 and evaluates the strength of seed investment support.

The Growthink Private Equity Funding Report found 63 biotech and pharmaceutical companies received $949 million in venture capital deals. Among major metropolitan areas, the San Francisco Bay Area continued to lead the nation with nearly $1.3 billion in investments, or 31.8 percent of the nations total, and 125 companies securing deals.

Using responses from executives at 269 companies that raised venture capital in 2002 and the first four months of 2003 paired with research from VentureOne, the report found that big venture firms – those with assets under management of $1 billion or more – take larger stakes in early rounds.

The survey reports that companies securing investments in Q2 03 numbered 17 fewer than the prior quarter, as nearly $4.25 billion of venture capital was invested in 469 private companies. Among major metropolitan areas, the San Francisco Bay Area continued to lead the nation with $1.27 billion in investments, or 29.9 percent of the nations total, and 134 companies securing deals.

The survey reports a total of 669 entrepreneurial companies received funding in the second quarter compared to 647 companies in the previous quarter. Further, investments in companies in the early-stage of development increased significantly to $956 million, up from $668 million in the prior quarter — the first such increase in three years.

The report uses a unique data set of private equity funds from the last two decades to analyze the cash flow, return, and risk characteristics of private equity. The authors document the draw down and capital to be invested, and over ten years for capital to be returned to generate excess returns. The report also provides several determining factors for these schedules, including existing investment opportunities and competition amongst private equity funds.

The report from the Federal Reserve Bank of New York offers possible explanations for the riskiness of initial Public Offerings (IPOs). The author employs two approaches to investigate the post-issue riskiness of IPOs for the 1980-2000 period.

The study from the University of Vienna presents a model linking venture capital investment and job growth on the national level. The study looks at data on a sample of 20 member countries of the Organisation for Economic Cooperation and Development and concludes that an increase of one standard deviation in early-stage capital alone is associated with a positive change in employment ranging between 1.1 and 1.4 percent.