European Venture Capital Experience And Lessons

This paper described the European venture capital history and its status quo within two chapters. Then discuss the economic impact of venture capital on the sustainable economic growth, innovation and job creation in European. To answer the question why venture capital markets are well developed in some European countries but comparatively small in others, author used regression models to give out possible solutions, including difference in capital market depth, tax, research and development expenses and the legal environments. After that, author discussed the situation of Chinese venture capital market and its potential problems. At last the article provided some policy suggestions for Chinese government using experience from Europe.The characteristic of this paper lie in its detailed while reliable dataset, especially when describing the status quo of European venture capital market. Using almost the latest data, author provided a broad picture of European venture capital activity with respect to fundraising, source of funding, investment volume, stage distribution of investment, industrial distribution of investment and the internal rate of return for different kind of venture capital investments.The creative point of this paper relates to the analysis of the imbalanced development of venture capital market in European countries. Author tried to solve this problem using panel data of 16 European countries during 2002 and 2008, and reached a significant output. Based on the regression result, author also provided his political suggestions to China for a better venture capital market development.