Emergence of Venture Capital in Western Europe vs the United States :: essays research papers fc

Emergence of Venture Capital in Western europium vs the linked StatesTable of contents1 Introduction 12 The character of post bully22.1 Definition of gauge not bad(p)22.2 (Ad) gors of the past(a)22.3 How feign capital works32.4 For groundwork a vehicle is demand42.5 Venture capital helps create vehicles for innovation42.6 Realization of financial returns53 Screening and evaluation touch63.1 Strategies and objectives of venture capitalists63.2 Screening and decision making process63.3 Decision to invest83.4 Deal structuring94 The teaching of venture capital in Western europium104.1 prevalent104.2 Environmental factors influencing innovation115 Interview176 Conclusion20Bibliography211 IntroductionThe phenomenon that is now called venture capital developed after World War II in the United States. Many returning soldiers were un leave aloneing to take back their old jobs and started turn out on their own. Moreover the war had produced many technological innovations and ide as that could be put to civilian use. Facilities and machines used in the war production had become unnecessary and were very much for sale at bargain prices. The post war economy expanded fast and offered many business opportunities. It was in this environment that many new enterprises started and needed capital.The rootage European venture capitalists appeared in the 60s following the U.S.A. example. In the 80s the venture capital manufacturing in Europe had reached a level comparable to this industry in the United States during the 50s (Bygrave, and Timmons, 1992).The purpose of this paper is to explain why the venture capital industry in Western Europe has developed so many years later than in the United States.In chapter two the nature of venture capital will be discussed. The definition and the history of venture capital will be given over and how venture capital works will be discussed.For a part understanding of venture capital, in chapter three, the screening and eval uation process to analyse investment possibilities and to take investment decisions will be discussed.In chapter four, the factors influencing the development of venture capital and the causes of the later development of the industry in Western Europe will be explained.Also a brief summary is given of venture capital today in Western Europe based on an interview with a venture capitalist.In chapter five an interview with a venture capitalist about the changes in venture capital in the Netherlands is given. Finally, in chapter six a summary of the paper will be given.2 The nature of venture capital2.1 Definition of venture capitalDictionaries describe venture as an undertaking that is dangerous, daring, and of uncertain outcome. At a venture sum at stake.Emergence of Venture Capital in Western Europe vs the United States essays research papers fcEmergence of Venture Capital in Western Europe vs the United StatesTable of contents1 Introduction 12 The nature of venture capital22.1 Definition of venture capital22.2 (Ad)venturers of the past22.3 How venture capital works32.4 For innovation a vehicle is needed42.5 Venture capital helps create vehicles for innovation42.6 Realization of financial returns53 Screening and evaluation process63.1 Strategies and objectives of venture capitalists63.2 Screening and decision making process63.3 Decision to invest83.4 Deal structuring94 The development of venture capital in Western Europe104.1 General104.2 Environmental factors influencing innovation115 Interview176 Conclusion20Bibliography211 IntroductionThe phenomenon that is now called venture capital developed after World War II in the United States. Many returning soldiers were unwilling to take back their old jobs and started out on their own. Moreover the war had produced many technological innovations and ideas that could be put to civilian use. Facilities and machines used in the war production had become unnecessary and were often available at bargain prices. The post war economy expanded fast and offered many business opportunities. It was in this environment that many new enterprises started and needed capital.The first European venture capitalists appeared in the 60s following the U.S.A. example. In the 80s the venture capital industry in Europe had reached a level comparable to this industry in the United States during the 50s (Bygrave, and Timmons, 1992).The purpose of this paper is to explain why the venture capital industry in Western Europe has developed so many years later than in the United States.In chapter two the nature of venture capital will be discussed. The definition and the history of venture capital will be given and how venture capital works will be discussed.For a better understanding of venture capital, in chapter three, the screening and evaluation process to analyse investment possibilities and to take investment decisions will be discussed.In chapter four, the factors influencing the development of venture capital and the causes of the later development of the industry in Western Europe will be explained.Also a brief summary is given of venture capital today in Western Europe based on an interview with a venture capitalist.In chapter five an interview with a venture capitalist about the changes in venture capital in the Netherlands is given. Finally, in chapter six a summary of the paper will be given.2 The nature of venture capital2.1 Definition of venture capitalDictionaries describe venture as an undertaking that is dangerous, daring, and of uncertain outcome. At a venture means at stake.