Financing Innovative Development: Comparative Review of the by United Nations

By United Nations

This book presents a comparative assessment of coverage projects within the UNECE international locations looking to enhance the financing atmosphere for leading edge agencies within the early phases in their improvement. It discusses the categorical financing difficulties of leading edge intermediaries, specifically enterprise angels and enterprise capitalists. This record offers an outline of the most important tendencies in financing supplied through those intermediaries.

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Access to business angel networks or to other forums for interaction or knowledge exchange with fellow business angels may be important for overcoming the hurdles associated with initial private investments. Business angel academies and investor readiness programmes help virgin angels to become serial angels by increasing their understanding of the angel market, and also provide investment support to seasoned angels. 2. Providers of vp funds The funds invested by VL ~irmsin promising entrepreneurial ventures are typically provided by institutional or other investors.

Figure nine provides evidence for the relationship between VC returns and fundraising in US and Europe over the period 1980- 2001. In both regions, returns and funds raised have moved in close unison from the late 1980s onwards, with fundraising trailing by about four years. This is roughly the time period after which there emerges an indication of the magnitude of the returns to be achieved by funds raised in a particular vintage year. For example, the record fundraising in 2000 reflected the stellar returns of funds raised in 1996 (particularly those in the US), riding the Internet and communications wave of the late 1990s.

Exits through acquisitions Acquisitions (trade sales), although on average less lucrative and less visible, represent a more frequent form of exit for both business angels and venture capital firms. Both motivation and opportunity can explain why existing companies acquire new, innovative, less established counterparts. For established companies acquisitions represent an important strategy for enhanced competitiveness and strategic renewal. In entrepreneurial, dynamic environments, in which new firms frequently emerge and overtake or disrupt the business models of established companies, acquisitions allow the currently better entrenched and financially savvy firms to preempt their eventual demise by building competitive positions in the "new economic order".

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