Venture Capital in Europe


  • Greg Gregoriou, School of Business and Economics, State University of New York, Plattsburgh, NY, USA
  • Maher Kooli, Assistant Professor of Finance at the School of Business and Management, University of Quebec in Montreal (UQAM)
  • Roman Kraeussl, Assistant Professor of Finance at Vrije Universiteit Amsterdam

Until recently, only the United States had an active venture capital market. This is changing rapidly, as many other countries have experienced rapid growth in venture capital financing over the past five years. This book contains new scientific articles showcasing the latest research on venture capital in Europe. Venture capital investment remains a hot topic with portfolio managers, individual investors, academics worldwide. This book examines in detail all the major issues regarding venture capital investment: contracting, financing, regulation, valuation, etc. and identifies new trends in the venture capital arena. Features a foreword by Josh Lerner.
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Primary audience: Professionals, academics, and graduate students in financeSpecifically: Institutional investors looking for new investment, legal staff of corporationsInterested in current trends in venture capital financing, and academics looking for new research on venture capital. Secondary readership:Professional organizations and securities regulators specializing in alternative investment; students in courses on corporate finance, international finance, entrepreneurial finance and alternative investments (book would be supplemental text).


Book information

  • Published: October 2006
  • ISBN: 978-0-7506-8259-6


"Over the past decade, venture capital finance has developed into an important source of start-up and growth financing. This volume is fascinating reading and highly informative. Venture Capital in Europe contains thoughtful and informative essays by several of the leading scholars in the field, and provides a comprehensive picture of the structure of venture capital financing, the valuation of investments, and the exit routes for venture capitalists. I highly recommend it." --Luc Renneboog, Professor of Finance, Tilburg University "In this exquisitely edited volume, Gregoriou, Kooli, and Kraeussl artfully integrate a wide array of findings on the role and importance of venture capitalists in Europe. The articles exclusively written for this volume by leading researchers in this topic present the latest cutting edge research on venture capital in Europe. This volume helps build our understanding of this important phenomenon in Europe by offering an overview of European venture capital markets, the strategies of European venture capitalists, their financing and contracting behaviour and the performance of venture capitalists in the different European Countries. I highly recommend this volume for those seeking to understand the increasing importance of venture capitalists in Europe." -- Erik E. Lehmann, Chair of Firm Strategy and Organization, University of Augsburg "The book provides a timely and a comprehensive analysis of European Venture capital and Private equity by leading experts in this field. Through its many diligent articles, which are supported by detailed use of statistics, the book is an important source of information for anybody interested in Equity Capital Markets and the underlying forces driving its future across Europe." -- Dr. Josef Schuster, CEO and Founder, IPOX Schuster LLC "A must-read for both scholars and professionals wanting to know more about European venture capital. A very insigtful book, that covers all aspects of the venture capital industry." -- Peter Roosenboom, RSM Erasmus University "This book is a must for all those interested and engaged in the European Venture Capital industry, like academics, investment bankers, consulting firms, or policy makers. It not only covers latest cutting-edge research results, but as well provides a very nice overview of the fast growing Venture Capital market in Europe. The book also reveals European specifics in this business, especially in relation to the United States." Wolfgang Aussenegg, Associate Professor of Finance ,Department of Finance and Corporate Control, Institute of Management Science, Vienna University of Technology

Table of Contents

1 Venture capital in Europe: closing the gap to the U.S. Andreas Oehler, Kuntara Pukthuanthong, Marco Rummer, and Thomas Walker2 Public venture capital across Europe: a 15-year perspective Christof Beuselinck and Sophie Manigart3 Why are venture capital markets well developed in some countries but comparatively small in others: evidence from EuropeKuntara Pukthuanthong, Dolruedee Thiengtham, and Thomas Walker4 A survey of the venture capital industry in Central and Eastern Europe Rachel A. Campbell and Roman Kräussl5 Venture capital in European transition economies Robert W. McGee6 Recommendations for the development of a European Venture Capital regulatory corpus: lessons from the USAEdward J. Lusk, Gregor Schmidt, and Michael Halperin 7 Productivity growth in Spanish venture-backed firmsLuisa Alemany and José Martí8 Is the Spanish public-sector effective in backing venture capital Nina Zieling, José Martí and Marina Balboa 9 A review of the venture capital industry in ItalyFabio Bertoni, Massimo G. Colombo, Annalisa Croce, and Evila Piva10 Exit strategy and the intensity of exit-directed activities among venture capital backed entrepreneurs in SwedenAnders Isaksson11 Private equity fund managers over-value their company investmentsTom Weidig, Andreas Kemmerer, Tadeusz Lutoborski and Mark Wahrenburg12 A search model of Venture Capital, entrepreneurship, and unemploymentRobin Boadway, Oana Secrieru and Marianne Vigneault13 Capital structure in new technology-based firms: venture capital-backed versus non-venture capital-backed firms in the Irish software sectorTeresa Hogan and Elaine Hutson14 German business ventures –enterpreneurs, financing and success factors Niklas Wagner, Martin Brixner, Angela Poech and Christoph Kaserer15 Financing practices in the German Venture Capital industry: an empirical studyAndreas Bascha and Uwe Walz16 Covenants in Venture Capital contracts: theory and empirical evidence from the German capital marketRon C. Antonczyk, Wolfgang Breuer, and Klaus Mark 17 Supply and demand of venture capital for biotech firms: the case of the Belgian regions of Wallonia and BrusselsVéronique Bastin, Georges Hübner, Pierre-Armand Michel, and Mélanie Servais18 Efficiency of VC firms using data envelopment analysis Greg N. Gregoriou, Maher Kooli, Philipp Krohmer, and Rainer Lauterbach 19 Agency theory and management buy-out: the role of venture capitalists Hans Bruining and Arthur Herst20 Does the value of Venture Capital vary over the investee life cycle?evidence from Irish investees Nancy Huyghebaert and Sheila O’Donohoe21 German banks as venture capitalistsTereza Tykvova22 Long-run venture-backed IPO performance analysis of italian family-owned firms: what role do closed-end funds play?Stefano Caselli and Stefano Gatti23 Securitisation and venture capital fund-raisingPaul U Ali24 Total loss risk in European vs. U.S. based venture capital investmentsDieter Kaiser, Rainer Lauterbach, and Denis Schweizer