Revisiting in a European perspective, the emergence, dynamics and role of venture capital industry : insights from the Venture Fun project.
While the previous project was focused on firms themselves, this second project considered the emergence of venture capital industries in Europe in a country- and sector-comparative mode.
The project had two complementary objectives. One was more theoretical focusing on the development of an evolutionary approach to VC industry development, while the other focused on policy interventions. The former has given rise to a successive set of papers by M. Teubal and colleagues (2006, 2008 and 2010, see box below). The other focused on an in-depth comparative analysis of policy interventions supporting venture capital to derive lessons for further policy development. The box below presents the practical policy recommendations derived from the comparative analysis made. These insights have driven to numerous interactions with policy-makers during the life of the project, both through a series of meetings and during the empirical phases. For example, in Finland the empirical studies for the project were funded by the Finnish Funding Agency for Technology and Innovation and the Ministry of Trade and Innovation, “leading to a lot of formal and informal interaction with representatives of these funding bodies and direct dissemination to them” (see 2007 Venture Fun strategic report).
The results arrived at drove PRIME to support a targeted conference gathering policymakers, university TTO and VC industry representatives (Milano, 2008, see key events) presenting the projects results and discussing (a) the impact of venture capital on firm’s performance, (b) the role of VC in adding value to portfolio firms, and (c) the interactions between VC and TTOs.
One important conclusion was the need to broaden the narrow financial focus often adopted in the study of venture capital. The results arrived at by the project and presented during the conference (they give rise to a special issue of the journal Venture Capital due end of 2010) have resulted in defining a revised research agenda, which has been successfully taken up in a FP7 project (2009-2012).
Policy recommendations about supporting Venture Capital Industries
Main Presentations of Venture Fun Results – Milano Conference (2008, 28-29 May)
Presentations at the 2008 French presidency conference (Toulouse, 7-9 July)
Other Papers and Presentations from the Venture Fun project