 The funding of venture capital in Europe: Issues for public policyDavid Mcglue Venture Capital, 2002, vol. 4, issue 1, 45-58 Abstract: This paper considers the key questions facing public policy-makers in the European Union in developing policies to stimulate venture capital. The first is how to define when and where public intervention is necessary and justifiable. The second is to identify precise policy objectives. Thirdly, should the public sector take the same or more of the risk and less of the return than the private sector? Then, what instruments should the public sector deploy (equity, grants, guarantees or loans, or a combination)? Finally, when should public intervention cease? The paper considers the experience of instruments at both European and national levels and some of the policy debates. It concludes with reminders that venture capital is not the most appropriate form of finance for all small businesses; that venture capital will not in any case succeed in promoting growth unless an appropriate framework exists also on the demand side to support the emergence of growth companies; and that venture capital in Europe must be complemented by the growth of entrepreneurial finance from other sources, notably business angels, who have played a key role in the US experience. Date: 2002 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:veecee:v:4:y:2002:i:1:p:45-58 Ordering information: This journal article can be ordered from DOI: 10.1080/13691060110091246 Access Statistics for this article Venture Capital is currently edited by Colin Mason and Richard T. Harrison More articles in Venture Capital from Taylor & Francis Journals |
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