Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship

2013 Edition
| Editors: Elias G. Carayannis

Venture Capital and Small Business

  • Christian Poncet
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-3858-8_251


Venture Capital Traders in Their Environment

Breakthrough innovations tend to be found in small innovating businesses which, in order to develop, must call on external funding. Therefore, the capital requirements of companies with high growth potential, become an obstacle for their development and, hence, for the innovation process which they provide. Therefore, the capital investors take on the role of privileged players in the small companies’ finances, since this activity corresponds with strategies for the diversification of the fund managers’ portfolios, as well as equity requirements which these companies express. The capital part of the investment, specifically dedicated to these growth start-up companies therefore takes the form of “venture capital.” The term “venture capital” shows the use of funds which is typically created in the USA. From this perspective, moving to other environments which have the...

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Copyright information

© Springer Science+Business Media LLC 2013

Authors and Affiliations

  1. 1.ART-DevUniversity of MontpellierMontpelier CEDEX 01France