Sources of funds and investment activities of venture capital funds: evidence from Germany, Israel, Japan and the United Kingdom

Abstract

We compare the investment activities and sources of finance of venture capital (VC) funds in Germany, Israel, Japan and the United Kingdom. VC investments differ across countries in terms of their stage, sector and geographical focus. Sources of VC funds also differ across countries; for example, banks are particularly important in Germany and Japan, corporations in Israel, and pension funds in the United Kingdom. Although the differences in investments are related to funding sources-for example, bank and pension fund-backed VCs invest in later stage activities than individual and corporate backed funds-a large proportion of variation within as well as between countries is unrelated to sources of finance. Moreover, differences in the relation between funding source and VC activity are unrelated to the country's financial systems. We conclude that neither financial systems nor sources of finance are the main explanations for the pronounced differences in VC activities. D

Venture Capital Contracting in Theory and Practice: Implications for Entrepreneurship Research

“…Concerning the second question, moral hazard risks associated with the entrepreneur's role as a contracting agent are well outlined: (1) the entrepreneur's unwillingness to expend 2 See Berger and Udell (1998), Bergmann and Hege (1998), Chan (1983), Casamatta (2003), Casamatta and Haritchabalet (2007), De Clercq and Sapienza (2001), Gompers and Lerner (1999), Keuschnigg (2003, 2004), Manigart, Sapienza and Vermeir (1996), Manigart et al, (2000Manigart et al, ( , 2002aManigart et al, ( , 2002bManigart et al, ( , 2002c, Mayer, Schoors and Yafeh (2005), Sapienza (1992), Trester (1998) and Wright and Lockett (2003).…”

The Determinants of Venture Capital in Europe — Evidence Across Countries

“…The published papers which are most related with our analysis, both in terms of model and data used, are the following ones: Gompers (1998), Gompers and Lerner (1998b), Hellmann (1998b), Jeng and Wells (2000), Marti and Balboa (2001), Romain and La Potteria (2004) and Mayer, Schoors and Yafeh (2005). Gompers (1998) examines the movements in the U.S.A. venture capital market, for the period of 1969 to 1997.…”

“…More recently, Mayer, Schoors and Yafeh (2005) investigate questions related to funds for venture capital investments, using an approach quite different from the one described before.…”

A kapitalizmus új királyai: kockázati tőke Magyarországon és a közép-kelet-európai régióban

“…Mayer -Schoors-Yafeh [2005] vizsgálta a kockázatitőke-alapok forrásai és tevékenysége közötti kapcsolatot négy országban (Németország, Izrael, Japán, Egyesült Királyság). E szerint a finanszírozás forrásai erőteljesen kihatnak az adott országon belüli befektetési tevékenységre.…”

“…Az intézményi befektetők vagyonának allokációját elemző legtöbb tanulmány a teljes vagyon 5-10 százaléka közötti arányra becsüli azt a kockázatitőke-részarányt, amely esetén -ismerve ezen eszközosztály kockázat/hozam jellemzőit -a kockázati tőke javíthatja a portfólió kockázathoz igazított hozamát ( Jeng-Wells [2000], Mayer-Schoors-Yafeh [2005], Cumming-Fleming-Suchard [2005]). Minimum 5 százalék az a részarány, amelynek még bármely eszköz-osztály esetében jelentősége lehet (FW Capital [2007]).…”