A Comparative Analysis of Venture Capital Investment In the United States and Europe

Author(s):  
Roman Kräussl ◽  
Stefan Krause ◽  
Sophie Manigart
2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Yochanan Shachmurove

This paper studies venture capital investment in the United States, with an emphasis on the Clean-Technology industries. The Clean-Technology industries encompass ventures that compete in markets with products and services that explicitly take environmental issues into account. This paper explores the importance of macroeconomics variables, aggregate venture capital investment on Clean-Technology and investment backed by venture capital. Quarterly data of capital venture investment and number of deals are used for the period 1995-2020. The results indicate that Clean-Tech investment offers investors possibilities for some degree of diversification.


2019 ◽  
Vol 10 (4) ◽  
pp. 501-515
Author(s):  
A. G. Philippov ◽  
E. V. Gruzdeva

Purpose: this article aims to determine key characteristics features of venture capital investments models in the context of the development of innovative enterprises. For this purpose the authors conducted analysis of the current state and key differences of venture capital investments models in Russia and in the USA, determined fields and ways for further improvement of domestic models of venture capital investments.Methods: to achieve the stated goal, theoretical research methods - abstraction, analysis and synthesis were used. Adoption of these methods, led to analysis of the theoretical basis of venture capital investments models and identification of key features having the greatest practical significance. The models of venture capital investments in Russia and the USA were studied, and a quantitative and qualitative comparative analysis of the elements characterizing the models of venture capital investments was carried out. The study was based on the data published by the national associations of venture investors and the information database of venture capital companies Pitchbook.Results: this article reveals the importance of venture capital investments as the main factor affecting the innovative development of the Russian economy. In modern conditions, venture capital investments are a key tool that helps bring financial resources to young innovatively active companies. This article summarizes results of the study of the theoretical base of venture capital investments models and the historical dynamics of venture capital investments in Russia and the USA. A comparative analysis revealed similarities and differences between the following elements, characterizing the models of venture capital investments in Russia and the USA: stages of development of venture capital companies, types of investors and sources of venture financing, distribution of venture investments by industry, exit strategies and organizational forms of venture capital investments. The paper as well summarizes fields and ways for further improvement of models of venture capital investments based on a comparative analysis.Conclusions and Relevance: based on the conducted research and comparative analysis of venture capital investment models in Russia and the United States, the proposals for further improvement of Russian venture capital investment models were developed and presented in the article.


2020 ◽  
Author(s):  
Tetiana Tokhtamysh ◽  
◽  
Oleksandr Yaholnytskyi ◽  
Kateryna Hranko ◽  
◽  
...  

The article looks over the degree of implementation of FinTech services in the world. It’s determined that the leading countries in the implementation of FinTech are China, India, and South Africa. Crucial influencing factor is demographic, rather than the widespread demand among the population for modern technology. The penetration rate of these services in the United States, where the largest technology companies in the world are located, was only 46%. The share of service users among the population that actively use digital technologies reaches 33%. Noted that the objects of investment of American banks are startups, programming applications of open interfaces and platforms for third-party developers. European banks also aim to invest actively in the development of FinTech but are still more focus on their own development. It is determined that Asian, Australian and African banks tend to develop technological solutions on their own. According to experts, the number of partnership agreements in the world with FinTech companies will increase each year. The analysis of the regional structure of global investments in FinTech carried out. It showed a positive dynamics of investment during 2014–2019. Increasing the size of global investments is due to the interest of investors in new projects and business models. Venture capital investment priorities coincide with global ones and are related to reviewing, updating, and improving business processes. The amount of venture capital invested in FinTech projects stimulates the development of the financial industry, mainly in China, the United States, the United Kingdom, and Ireland. They account for almost 9 times more investment in FinTech than in other countries. Correlation-regression analysis was applied to investigate the relationship between the level of development of the FinTech market and foreign direct investments. According to the results of calculations, the largest impact on foreign direct investment has the volume of venture investment in FinTech-projects and the FinTech market development rating. This proves the positive impact of FinTech companies on the growth of foreign investments in the country.


1989 ◽  
Vol 7 (2) ◽  
pp. 205-222 ◽  
Author(s):  
M B Green

In this paper a model of the spatial development of the American venture capital industry is provided. The investment preferences for both publicly and privately owned venture capital firms for the period 1970–85 are examined in light of this model. A median polish analysis of the investment preferences, for firms located in the sixteen largest venture capital centers, reveals a high level of regional parochialism in investment. Differences in risk aversion and industry choice are also found both by city type and by firm type. Implications for local development are discussed.


2018 ◽  
Vol 32 (2) ◽  
pp. 99-118 ◽  
Author(s):  
Richard Florida ◽  
Karen M. King

Previous research has identified the clustering of high-tech industries, entrepreneurial start-ups, and venture capital across metropolitan areas. Using detailed ZIP code data on start-up activity and venture capital investment, this research tests three hypotheses informed by urban theory on the clustering of innovation, entrepreneurship, and high-technology industry: (1) that start-up activity and venture capital investment will concentrate in distinct microclusters within metro areas, (2) that a substantial level of start-up activity and venture capital investment will cluster in dense urban neighborhoods or ZIP codes, and (3) that the clustering of start-ups and venture capital investment will vary by industry or type of technology. The authors find evidence to support all three. Start-up activity and venture capital investment are concentrated in a relatively small number of ZIP codes in the United States, the majority of which are in dense urban neighborhoods, and this clustering varies by industry and type of technology.


2017 ◽  
Vol 2017 (1707) ◽  
Author(s):  
Tyler Atkinson ◽  
◽  
John V. Duca ◽  

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