Chances and Risks for Venture Capital and Private Equity in Europe

Wissenschaftliche Studie aus dem Jahr 2004 im Fachbereich BWL - Investition und Finanzierung, Note: keine, Wirtschaftsuniversität Wien (VWL (Doktoratsprogramm)), Veranstaltung: Intent Conference 2004 in Napoli, Italy, Sprache: Deutsch, Abstract: The specific aim of this paper is to offer suggestions and guidance on improving the effectiveness between theprivate and public sector to boost risk capital investment in R&D activities, presenting a series ofrecommendations in the chapter Challenges facing the European Risk Capital Industry, based on the latestreport of policy makers in the EU (report of the European Commission) in 2003.The immediate background of the report was the dramatic change in the economic environment for privateproviders of risk capital, combined with rising concern for insufficient public risk capital measures in theEuropean Union.This paper starts with the description of the important link between Risk Capital and R&D, followed by theanalysis how private and public risk capital investments affect the business activity of SMEs and Entrepreneursin Europe.After reviewing the important use of private risk capital instruments, the author summarizes major findings andexplains which lessons have been learnt from the past to tackle the current risk capital funding gaps.