Advanced Search
MyIDEAS: Login

Mind Europe's early-stage equity gap

Contents:

Author Info

  • Reinhilde Veugelers

Abstract

Remedying the European Unionâ??s deficient overall business research and development performance requires the nurturing of more new companies in new sectors, enabling them to grow to leading-innovator status. This means addressing young leading innovatorsâ?? access to external finance, particularly early-stage venture capital. The funding system for aspiring young leading innovators (â??yolliesâ??) needs to be understood as an interconnected system comprising different types of funding at different stages of company lifecycles. Venture capital funds are critical at the early commercialisation stage. Venture capital investors rely on a good deal flow of high-potential investment-ready firms, on skilled investment managers, and on developed exit markets. Poor returns from early-stage investments in Europe on a smaller deal flow have significantly reduced the appetite for early-stage venture capital. This exodus has left a funding gap in Europe for aspiring yollies. The evidence suggests that there are a number of ineffective public schemes supporting mediocre deals at mediocre funds. Shutting those down would free up enough funding to allow a significant shift towards a more effective venture investing system focused on high quality venture capital and innovative projects from aspiring yollies.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bruegel.org/download/parent/660-mind-europes-early-stage-equity-gap/file/1530-mind-europes-early-stage-equity-gap/
Download Restriction: no

Bibliographic Info

Paper provided by Bruegel in its series Policy Contributions with number 660.

as in new window
Length:
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:bre:polcon:660

Contact details of provider:
Postal: Rue de la Charité, B-1210 Brussels
Phone: +32 2 227 4210
Email:
Web page: http://www.bruegel.org
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bre:polcon:660. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruegel).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.