The Genesis of Venture Capital: Lessons from the German Experience

Ralf Becker and Thomas Hellmann (thomas.hellmann@sbs.ox.ac.uk)
Additional contact information
Ralf Becker: Stanford U

Research Papers from Stanford University, Graduate School of Business

Abstract: Why does venture capital work in some countries but not in others? This clinical study of the first German venture capital firm examines the difficulties of creating a venture capital market in a bank-based financial system. The analysis identifies the problem of creating appropriate governance structures to protect investor returns. It exposes the difficulties of established banks - not to mention government - to devise venture investment strategies. It identifies the availability of high quality entrepreneurs as a critical complement. And it provides a reinterpretation of the hypothesis of Black and Gilson (1997), arguing that the existence of an active stock market is a necessary, but by no means sufficient condition for the development of venture capital.

JEL-codes: G21 (search for similar items in EconPapers)
Date: 2000-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://gsbapps.stanford.edu/researchpapers/library/RP1705.pdf
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to gsbapps.stanford.edu:443 (certificate verify failed) (http://gsbapps.stanford.edu/researchpapers/library/RP1705.pdf [302 Found]--> https://gsbapps.stanford.edu/researchpapers/library/RP1705.pdf)

Related works:
Working Paper: The Genesis of Venture Capital - Lessons from the German Experience (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:stabus:1705

Access Statistics for this paper

More papers in Research Papers from Stanford University, Graduate School of Business Contact information at EDIRC.
Bibliographic data for series maintained by (workingpapers@econlit.org).