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Is the growing wealth the driving force for venture capital fundraising in Europe? An empirical analysis

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  • Ewelina Sokołowska

Abstract

There has been no study aimed to determine to what extent the growth of wealth, on a global scale, contributes to stimulating investments in high-risk ventures. This article intents to answer the question: Does the growing wealth drive venture capital fundraising in Europe? Additionally, we will calculate short-term forecasts of the increased-risk capital market for the years 2015–2017. Recognition of the factors impacting the vc/pe market allows stimulation of development of the increased-risk capital. Venture capital serves as a source of financing of prospective projects, stimulates innovation and promotes small and medium enterprises. Owing to counteracting unemployment, this capital economically supports development of countries.

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  • Ewelina Sokołowska, 2016. "Is the growing wealth the driving force for venture capital fundraising in Europe? An empirical analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 23(16), pages 1125-1129, November.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:16:p:1125-1129
    DOI: 10.1080/13504851.2015.1137542
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