Venture capital optimal investment portfolio strategies selection in diffusion - type financial systems in global capital markets with nonlinearities

Dimitri Ledenyov and Viktor Ledenyov

MPRA Paper from University Library of Munich, Germany

Abstract: The condensed research article presents some innovative research results on the venture capital optimal investment portfolio strategies selection in the diffusion-type financial systems in the imperfect highly volatile global capital markets with the incomplete information, which are characterized by the asymmetric information flows and impacted by the various types of the nonlinearities. We discuss the venture capital firms with the different organizational structures: the corporation funded venture capital firm, investment bank funded venture capital firm, private equity funded venture capital firm, state funded venture capital firm. We consider the complicated issues on the venture capital optimal investment portfolio strategies selection, evaluation of the possible returns on the investments, and implementation of exit strategies for the venture capital investment schemes. We propose that the information signals can be mixed and self-modulated during the asymmetric information flows in the information transmission channels between the market agents, resulting in the origination of the various types of the nonlinearities, which may have a considerable impact on the venture capital investments in the diffusion-type financial system. These nonlinearities have to be taken to an account during the venture capital optimal investment portfolio strategies selection process, which is all about making the right investment choices with the application of the inductive, deductive and abductive logics. In our opinion, the State of Queensland is a very attractive place to make the venture capital investments in the hi-tech startups, comparing to other regions in the World. We conclude with the notion that the venture capital industry can greatly improve the macroeconomic indicators of national economies, creating the new hi-tech industries, generating the abundant wealth, and increasing the Gross Domestic Product.

Keywords: venture capital concept; venture capital fund; venture capital investment portfolio and strategy; corporation funded venture capital firm; investment bank funded venture capital firm; private equity funded venture capital firm; state funded venture capital firm; entrepreneurship; theory of firm; wealth creation; econophysics; econometrics; nonlinearities; asymmetric information flows; mixing and modulation of information signals; diffusion-type financial system; imperfect highly volatile global capital markets with incomplete information (search for similar items in EconPapers)
JEL-codes: C01 C58 D81 D82 F61 F65 G11 G14 G15 G17 G23 G24 (search for similar items in EconPapers)
Date: 2013-11-26
New Economics Papers: this item is included in nep-cta
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/51903/17/MPRA_paper_51903.pdf revised version (application/pdf)

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