Lastly, being companies with a high technological content and strong growth potential, they are more likely to internationalise. 2 With regard to productivity, a study 3 on different US companies found evidence that those backed by venture capital saw an increase in productivity in the first two years of the investment that was 2 pps higher than firms lacking such support. For example, one euro invested in R&D by these firms is up to nine times more effective, in terms of the probability of generating a patent, than one euro invested by companies not backed by venture capital. On the one hand companies backed by venture capital are more efficient in allocating resources to research and development. Basically the impact of this type of financing leads to increases in innovation, productivity and competitiveness. Many academic studies have analysed the benefits of venture capital on a country's economy and its business fabric. Another advantage of this source of financing is that it is more stable throughout the cycle than traditional financing sources such as debt or loans. Moreover venture capitalists do not just inject capital into the firms they invest in but also offer experience and expert advice, the professional skills of a management team with corporate governance know-how and detailed supervision of the business, given that their main aim is for the firm they have invested in to grow and gain in value, thereby providing them with a return that offsets the risk they have taken on. This source of financing is particularly attractive for companies without much of a track record as, given their young age, they usually have little chance of obtaining other, more traditional types of financing. In Spain 91% of companies supported by such funds are firms with fewer than 100 workers, 58% are in at advanced stage of their business development and 76% belong to the ICT sector and digital technology. Venture capital funds provide capital for unlisted firms with high growth potential, either new companies (seeds and start-ups 1) or existing firms that are expanding. This article analyses one of these, venture capital, something many people are unfamiliar with but which can have considerable impact on a country's economic growth. One of the pillars of the CMU is the expansion and diversification in the medium and long term of alternative sources of financing to bank loans. After implementing the banking union, the European Commission has now set its sights on a new initiative to continue building a common financial framework throughout the European Union: the capital markets union (CMU).
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