Bogle & Reuber

1992

To identify potential problems for businesses in biotechnology to get VC financing.

The authors conclude that the VCC especially prefer to finance businesses that have reached advanced stages. VCC in the biotechnology sector assign much importance to experience and to the entrepreneur's personal qualities, and look for a competent management team. It seems that biotechnology businesses still lack these skills in Canada.

Knight

1994

To analyse the criteria used by the VCC in Canada and compare them to those used elsewhere, namely in the U.S.

The criteria used by the VCC in Canada are similar to those used in the U.S. However, investments in high technology are not as favoured in Canada as they are in the U.S. and high technology is even considered as a negative criterion in several regions of Canada.

Gompers

1995

To evaluate the influence of information asymmetries according to the stage of development and the technological level of the investments.

There is an increase in agency costs when there are fewer tangible assets, a possibility of greater growth and the assets become more specialized. The VCC concentrate their investments in high technology companies and in the initial stages of development where information asymmetries are at a maximum. A reduction in the percentage of tangible assets in the industry, a greater ratio market value/book value and greater intensity of R&D activities lead to greater monitoring by the VCC. The VCC periodically collect information and keep the option of stopping the financing if the project has little chance of winding up in an IPO.

Walsh, Niosi & Mustar

1995

To compare the emergence of small biotechnology businesses in France, Great Britain and Canada.

Taking the size of each country into account, the authors note a trend in Great Britain, France and Canada that is similar to what is happening in the U.S. in terms of the emergence of small businesses in biotechnology. Private financing is very dynamic in the U.S., where businesses benefit more from VC. The government of the three countries other than the U.S. then intervene to try to compensate for their gaps.

Baldwin & Johnson

1997

To establish the profile, including the financing strategy, of different innovative SME.

It is especially innovators of products, frequently at the initial stages of development, who use VC.

Gompers & Lerner

1999

To inform on the different dimensions of VC and to predict the future of this type of financing.

Venture capital supply will probably continue to rise. In fact, the VC industry seems to be cyclical. Technological innovations as well as the development of regional agglomerations are among the major deciding factors for VC supply in the U.S. There are several aspects that are still to be discovered. It will be interesting to see to what extent the model of American VC can be applied and succeed around the world.

Lerner

1999

To evaluate the efficiency of the Small Business Innovation Research program in the U.S.

The number of beneficiaries of the SBIR program has grown rapidly and they attract VCC more easily. The more performing businesses among these beneficiaries work in the field of high technology.

Dahlstrand & Cetindamar

2000

To study the financing of innovation in Sweden.

The authors demonstrate the importance of three actors in the development of a financing system for innovation. The actors are: the government, the VC industry and the competent acquirers.

Laperche & Bellais

2000

To describe and study various VC risks and the role of large business in the financing of innovation achieved by small businesses.

Several techniques can be used by the VCC to reduce the risks it faces. Public authorities can also help by offering guarantees or subsidies. Large businesses can benefit from the growth of small technological businesses that receive such assistance because the latter are a link in the strategy of large businesses.

Piper

2000

To do a survey of the articles on the financing of small high-technology businesses in the United Kingdom.

The author presents barriers to the financing of small high- technology businesses in the United Kingdom. Public and private sector initiatives are mentioned, however.

Lindstrom & Olofsson

2001

To analyse the access to financing by technological businesses at the initial phases of development and the help of investors.

VCC not only take part in financing but they offer different types of assistance. It turns out that high technology businesses, and those that are growing rapidly, face a greater problem in financing than do other businesses. Uncertainty and the emergence of the market justify these problems. In fact, it is the businesses that aim primarily at growth that are most favoured by the VCC and the business angels.

Megginson, Wang & Chua

2001

To study the signal power of traditional and technological factors, and their stability.

The authors conclude that traditional factors (for example, under-evaluation and the reputation of underwriters) have more signal power and are more stable, whereas technological factors, such as R&D personnel, have more long-term effects.

Axiss Australia

2002

To present the VC industry in Australia.

In Australia, venture capital has undergone constant evolution during the 1996-2000 period. Most investments were directed towards the service, information/computer technology and health/bioscience sectors. Moreover, one notes a certain will to promote initial stages of development.

Callahan & Muegge

2002

To study the influence of the role of VCC in the innovation process.

VC can promote innovation.

Chang, Shipp & Wang

2002

To study the role of the Advanced Technology Program (ATP) in the U.S.

The Advanced Technology Program allows for the financing of the initial stages of development of technological projects (including R&D expenses), but also encourages collaboration and exchanges of information between the businesses and various organizations.

Hall

2002

To look for proof of the presence of a finance gap in the case of R&D.

The author concludes that R&D projects are faced with very high financing costs that are partially mitigated by VCC. Thus, VC does not resolve all problems, especially in countries where the capital market is not very developed. The author suggests that the government concern itself more with financing at the pre-start phase.

Harding

2002

To study the role of government policy to help innovative and fast-growing businesses.

The author maintains that policies that aim at promoting VC demand are more efficient at overcoming asymmetries in information in the VC market than those that stimulate supply.

Hellmann & Puri (b)

2002

Examine the roles of VCC on companies financed on the Internet sector.

The authors question three particular elements specific to the Internet sector. Are the Internet boom and decline more pronounced than those before? How has the competitive structure of the VC industry evolved during the Internet bubble? Have the VCC survived better than the other parts involved after the decline of the Internet?

Lerner

2002

To understand the implications of the slump in venture capital activities on innovation.

Government programs and the most efficient policies are those that concentrate on the long-term improvement of private markets rather than those that simply try to offer short-term funds.

Mayer, Schoors & Yafeh

2002

To compare financing sources and investment activities of VC funds in Germany, Israel, Japan and the United Kingdom. The sources of the funds differ between the countries according to the type of market, which affects the type of investment.

Differences in investment are related to the provenance of the sums for establishing the VCC: the VCC financed by banks and pension funds invest more in the advanced stages than the VCC financed by individuals or by businesses. Different trends are observed, depending on the country (Germany, Israel, Japan and the United Kingdom).

Wesser

2002

To study the role of government in helping and supporting the new economy.

Government programs can play a role in the development of high-risk technological projects that investors do not finance.

Robinson

1997

To study the opportunities for the investment of SME in Canadian stock markets.

Canadian stock markets are not a source of financing for SME. The reasons for this are admission constraints and overly-demanding regulation, especially for small businesses. One must also ensure a liquid secondary market for the first market to be viable. A program such as the JCP in Alberta was successful because it met very well the needs of the region but different models should be applied in the other provinces.

Gompers & Lerner (c)

1998

To examine the positive effect of capital inflow into the VC industry on valuations.

The authors conclude that the sums committed are positively related to the valuation of new investments. This relation still holds if the model takes into consideration additional measures of control on the businesses that are financed and the performance of the stock market. The success of these investments does not seem to explain this relation.

Jeng & Wells

2000

To identify the deciding factors in raising funds.

The deciding factors in raising funds in venture capital are: IPOs, the rigidity in the labour market , disclosure standards of financial reports, private pension funds, GDP growth, growth in market capitalization and government programs. IPOs are the most important vectors in venture capital investment.

Laperche & Bellais

2000

To describe and study various VC risks and the role of large business in the financing of innovation achieved by small businesses.

Several techniques can be used by the VCC to reduce the risks it faces. Public authorities can also help by offering guarantees or subsidies. Large businesses can benefit from the growth of small technological businesses that receive such assistance because the latter are a link in the strategy of large businesses.

Balboa & Marti

2002

To analyse the factors that influence the supply and demand of equity financing (including VC) in 16 European countries.

The economic factors taken into consideration are: size of the domestic market; access to the financial market for growing businesses; regulations on capital gains tax; and the social climate. The authors found that the size of the domestic market (amount invested during the previous year) and access to the financial market of growing businesses have a significant impact on the amount collected.

Hall

2002

To look for proof of the presence of a finance gap in the case of R&D.

The author concludes that R&D projects are faced with very high financing costs that are partially mitigated by VCC. Thus, VC does not resolve all problems, especially in countries where the capital market is not very developed. The author suggests that the government concern itself more with financing at the pre-start phase.

Robinson & Stuart

2002

To analyse the contractual clauses of strategic alliances.

The form of participation in strategic alliances resembles what was emphasized by VCC: privileged convertible assets, a place on the board of directors, stock purchase warrants and anti-dilution provisions.