The article deals with the form of corporate financing, which is becoming more popular yet is still underused, i.e. venture capital funds as well as their peculiarities and the procedure for attracting investments into a company. The paper summarises the main advantages and disadvantages of venture capital funds as well as their relation with national economic development. It analyses venture capital funds operating in Lithuania, investment strategies and dynamics. Additionally, it overviews the relation between the funds and the Government. According to the venture capital accessibility ratio, Lithuania is above the European Union average and overtakes such countries as Poland, Czech Republic and even Germany. However, the analysis of particular private capital transactions demonstrates that Lithuania could only compete with Central and Eastern European countries.
Thearticle dealswith the form of corporate financing, which is becoming more popular yet is still underused, i.e. venture capital funds as well as their peculiarities and the procedure for attracting investments into a company. The paper summarises the main advantages and disadvantages of venture capital funds as well as their relation with national economic development. It analyses venture capital funds operating in Lithuania, investment strategies and dynamics. Additionally, it overviews the relation between the funds and the Government. According to the venture capital accessibility ratio, Lithuania is above the European Union average and overtakes such countries as Poland, Czech Republic and even Germany. However, the analysis of particular private capital transactions demonstrates that Lithuania could only compete with Central and Eastern European countries. Santrauka Straipsnyje nagrinėjami sparčiai populiarėjantys, bet Lietuvoje įmonėms finansuoti dar retai naudojami rizikos kapitalo fondai, jų ypatumai, investicijų pritraukimo ir investavimo į įmonę procesas. Apibūdinami pagrindiniai rizikos kapitalo fondų privalumai ir trūkumai, jų sąsaja su šalies ekonomikos plėtra. Nagrinėjami Lietuvoje veikiantys rizikos kapitalo fondai, jų investavimo strategija, atliktų investicijų dinamika, apžvelgiamas šalies vyriausybės sąryšis su šiais fondais. Pagal rizikos kapitalo prieinamumo rodiklį Lietuva viršija Europos Sąjungos vidurkį ir lenkia tokias šalis, kaip Lenkija, Čekija, net ir Vokietija. Tačiau, analizuojant konkrečius privataus kapitalo sandorius, Lietuva gali konkuruoti tik su Centrinės ir Rytų Europos šalimis. Rizikos kapitalo fondai: teoriniai aspektai Reikšminiai žodžiai: įmonių finansavimas, privatus kapitalas, rizikos kapitalo fondai, rizikos kapitalo fondų bruožai, įmonės investicinio patrauklumo vertinimas.
Thearticle dealswith the form of corporate financing, which is becoming more popular yet is still underused, i.e. venture capital funds as well as their peculiarities and the procedure for attracting investments into a company. The paper summarises the main advantages and disadvantages of venture capital funds as well as their relation with national economic development. It analyses venture capital funds operating in Lithuania, investment strategies and dynamics. Additionally, it overviews the relation between the funds and the Government. According to the venture capital accessibility ratio, Lithuania is above the European Union average and overtakes such countries as Poland, Czech Republic and even Germany. However, the analysis of particular private capital transactions demonstrates that Lithuania could only compete with Central and Eastern European countries. Santrauka Straipsnyje nagrinėjami sparčiai populiarėjantys, bet Lietuvoje įmonėms finansuoti dar retai naudojami rizikos kapitalo fondai, jų ypatumai, investicijų pritraukimo ir investavimo į įmonę procesas. Apibūdinami pagrindiniai rizikos kapitalo fondų privalumai ir trūkumai, jų sąsaja su šalies ekonomikos plėtra. Nagrinėjami Lietuvoje veikiantys rizikos kapitalo fondai, jų investavimo strategija, atliktų investicijų dinamika, apžvelgiamas šalies vyriausybės sąryšis su šiais fondais. Pagal rizikos kapitalo prieinamumo rodiklį Lietuva viršija Europos Sąjungos vidurkį ir lenkia tokias šalis, kaip Lenkija, Čekija, net ir Vokietija. Tačiau, analizuojant konkrečius privataus kapitalo sandorius, Lietuva gali konkuruoti tik su Centrinės ir Rytų Europos šalimis. Rizikos kapitalo fondai: teoriniai aspektai Reikšminiai žodžiai: įmonių finansavimas, privatus kapitalas, rizikos kapitalo fondai, rizikos kapitalo fondų bruožai, įmonės investicinio patrauklumo vertinimas.
Technovation Vol.33 Nr.4 - 5, 154 - 162 ; Government venture capital (GVC) funds have been a common policy initiative in European countries to overcome funding gaps in the promotion of early-stage ventures. In this work, we focus on the performance of such government funds. We compare the importance for the firm's development of post-investment, valueadded activities by GVC firms and independent venture capital (IVC) firms.We use a unique data set based on the results of a survey addressed to young high-techVC-backed firms from seven European countries. The survey gauged the importance of the contribution by the first lead investor in a variety of activity areas, as assessed by the investee companies. Attention was paid to potential adverse effects of the post-investment engagement of investors.Using a composite indicator of the value added, we find no statistically significant difference between the two types of investors. However, the profiles of value added differ across investor types, and, in particular, the contributions of IVC funds prove to be significantly higher than those of GVC funds in a number of areas, including the development of the business idea, professionalisation and exit orientation.
In the year 1996, the government for the first time gave an organisational shape to the needs of the unlisted companies and Greenfield projects in India and the Venture Capital Industry was formalised. Prior to 1996 also World Bank aimed at helping small, innovative firms to obtain innovative resources by building the regulatory and institutional framework for venture capital in India. World Bank, in fact, started venture capital initiative too by providing assistance to Industrial Credit and Investment Corporation of India Ltd. (ICICI), Canara Bank, the State Industrial Development Corporation (SIDC) of Andhra Pradesh (APIDC) and Gujarat (GIIC) for opening up venture funds. Although this initiative by the World Bank was able to give the Indian innovative firms some form of assistance, the criterion to get venture funds as laid down was too restrictive and the regulatory aspect was also too clumsy. It was only after the release of Securities and Exchange Board of India (Venture Capital) Regulation, 1996 and Securities and Exchange Board of India (Foreign Venture Capital) Regulation, 2000 that the venture capital industry took a formal shape in India. It has been twenty years since the formalisation of the venture capital industry here. Unlike the middle nineties and even the early twenties, when foreign investors were too reluctant to invest in Indian projects, today the Indian ventures are not in dearth of foreign funds. In fact, this study finds that, from the later part of the last decade foreign investors have been playing pivotal role in providing financial assistance to Indian unlisted companies. Results from this study also find significance difference in the investment behaviour of foreign and domestic venture funds across the sectors over the study period. It has also been observed by the researcher that in the last nine years, investments from the foreign venture funds have experienced quintessential growth in the country and has even surpassed the domestic funds by a huge margin.
In the article analyzed the current state and prospects of development of legislative regulation of venture capital funds in Ukraine. Considered the main normative legal acts and laws that support the venture funding and submitted a proposal for their changes.
