About.com, 139
Abraaj Capital: interest of in National Air Services (NAS), 57–58
Abu Dhabi: cultural tourism in, 4–5; investment in Citigroup by Investment Authority of, 169; sovereign wealth fund of, 163
academic centers of excellence, 95–97
academic research: on entrepreneurship and venture capital, 7–9; leveraging, 182; on sovereign funds, 173–74; spending for, 90–91
academic spending, in Singapore, 90–91
academic spin-outs, funding of, 96–97
accountability, lack of, 144
Acs, Zoltan, 47
Advanced Micro Devices (AMD), founding of, 66
Advanced Technology Program (ATP): failure of, 149–50; inflexibility of, 125–26
Africa: pioneering venture funds in, 124; telecom industry in, 49–50
Agency for Science, Technology and Research (Singapore), 91
agency problems, minimizing, 187
AIG (American International Group), U.S. government investment in, 1
airplane-based power systems, 34
Al Khayala, 58
Al Maktoum, Sheikh Rashid bin Saeed, 2
Allen and Buckeridge Seed Stages Ventures, 84
AllianceBernstein, partnering of with Lingtu, 57
Alsopp, Stewart, 178
Alternative Minimum Tax, 98
Alturas Technology Park, 115
Amazon, social benefits of, 71
American Research and Development (ARD), 9; establishment of, 36–37; low returns of firms funded by, 69
American Stock Exchange, Emerging Company Marketplace of, 107
ARCH initiative, 97
Asia, concentration of venture capital in, 28
Athena Venture Partners, 156
Audretsch, David, 47
Australia: BITS program of, 11; Building on Information Technology Strengths (BITS) program of, 84–85; venture capital limited partnerships in, 158
automakers, financial rescue of, 1
Bangalore, entrepreneurship in, 5
Bank of England, equity funding by, 40
Bessemer Venture Partners, 154; antiportfolio of, 53; “Due Diligence Booklet” of, 51
Bharti Televentures, 105
Biopolis, 91–92, 96; success of, 114
biotechnology industry: in Malaysia, 113–14; venture capitalists’ role in, 60–61
BioValley complex (Malaysia): establishment of, 113–15; problems with, 11
BlueFire, 85
BlueSky Festival, 91
Bond Helicopters, funding of, 41
Bondnet Trading Systems, liquidation of, 139
Borgdorff, Wim, 123
Boston: concentration of venture capital in, 26; as venture capital center, 157
Boston University: Massachusetts’ Attorney General’s Office agreement with, 206n12; venture capital subsidiary of, 96–97
Brander, James, 122
British Petroleum: Kuwait Investment Office investment in, 169
Brittany, high-technology cluster in, 75–76
Building on Information Technology Strengths (BITS) program, 11
Burnand, Aisling, 146
Business Development Fund, Denmark, 80
buyout bubble, 174
buyout firms, criticism of, 170–71
buyout funds, 7
Caledonian Airways (British Caledonian), funding of, 41
Cambridge University, concentration of venture capital in, 28
Canada: globalized venture capitalism in, 155; Industrial Innovation Centre’s Inventor’s Assistance Program of, 99–100; Labor Fund Program of, 185; sizing Labor Fund Program of, 119–23; Small Business Loans Act program in, 80
Canadian Football League Players’ Association, Sportsfund of, 120–21
CAPCO program, tax incentives in, 189–90
capital: changing location of investments of, 154–55; impact of constraints on, 69; limited partnership investments of, 154
capital gains tax rates, 97–98
capture, 80–85; in natural resource-dependent countries, 167
Carlyle Group, 170
cash-out potential, 52
casinos, cheater detecting technologies of, 176–77
CBR Laboratories of Boston, funding of, 126
cell phone industry, innovation in, 49–50
Celltech: failure of, 11; failure to evaluate, 145–46
Central Intelligence Agency. See CIA, In-Q-Tel and,
certification, provision of, 69–71
Chengwei Ventures, 31
Chicago, University of, ARCH initiative of, 97
China: digital map-making company in, 56–57; failure to evaluate venture funds in, 148; institutional challenges of venture funds in, 213–14n12; private equity activity in (1992–2007), 31; proposed regulation of foreign investment funds in, 170; sovereign wealth growth in, 164; venture capital concentration in, 28; venture market boom in, 31
China Unicom, partnering with Lingtu, 57
CII Honeywell Bull and Thomson, 74, 75
Cirrus Logic, founding of, 66
Citigroup, Abu Dhabi Investment Authority investment in, 169
Cleveland, biotechnology initiative of, 212n29
Colorado State University, Center for Advanced Technology at, 115
compensation, controversy over, 176–78
Compton, Karl, 37
computer companies, venture capitalists’ role in, 60–61
computer manufacturers, profits of, 71
Computer MicroTechnology, 66
Crocker, William, 34
cultural tourism, in Abu Dhabi, 4–5
Cumming, Douglas, 121
Cyprus Semiconductor, 32
Defense, U.S. Department of, in Silicon Valley, 33
Delaware partnerships, 157
democracies, election cycles in, 112
Denmark: Business Development Fund in, 80; criticism of foreign investment funds in, 170
diamonds, as source of sovereign wealth, 163–64
digital mapmaking, in China, 56–57
Discovery Fund, failure of, 138–39
District of Columbia, incompetence in economic development in, 76–77
diverse societies, government competence in, 73
domestic investment, rules requiring, 188–89
Draper, Gaither, and Anderson, 37
Draper Fisher Jurvetson, 154
Dubai: financial crisis in, 4; Persian Gulf states emulating, 190; rapid economic growth of, 2–4
Dubai Creek, dredging of, 2
Dubai Internet City (DIC), 3–4
Dunbar, William, 147
“Dutch Disease,” 166
economic growth: innovation and, 43–45; innovation in, 9; in Jamaica versus Singapore, 18–20; variables in, 166–67
education, need to incorporate, 187–88
Egan, Edward, 122
Eisinger, Peter, 118
Elwell, Cyril, 33
emerging markets, fears of venture capitalists in, 104
Emirates Airlines, development of, 2–3
Employee Retirement Income Security Act, clarification of, 39–40, 62
Enron, Raptor partnerships of, 178
Enterprise Day (Singapore), 91
enterprise development, in Singapore, 91
entrepreneurial activity: context of, 181–82; cutting-edge technology in, 96–97; legal system supporting, 92–96; tax incentives for, 97–99; training for, 99–100
entrepreneurial hubs, 5, 130–31; attracting international investors to, 12–13
entrepreneurial process: direct intervention in, 13; ignoring international nature of, 14; ignoring realities of, 13
entrepreneurs: challenges for, 8–9; enhancing climate for, 90–100; fast-growing, 5–6; global resource deployment by, 155; government support of pioneering, 25–42; Indian, 28; low-income, 100; need to educate, 187–88; peers of, 10; proliferation of, 38–39; training of, 99–100; who extract profits from system, 82–83
entrepreneurship: academic research on, 9; creating right climate for, 12; efforts to enable, 92–100; global focus of, 28; “good” and “bad,” 82–83; government promotion of, 10; government strategies to stimulate, 12–14; guidelines for facilitating, 16–17; history of, 25–42; increasing attractiveness of, 100–8; prescriptions for to avoid, 17; in Singapore, 18–19, 90–92; virtuous cycle of venture capital and, 66–69
entrepreneurship academies, pioneering firms as, 66
environmental threat resistance, 52
ethnic homogeneity, good government and, 73
Europe: criticism of foreign investment funds in, 170; venture fund returns in, 79
European Investment Fund, 122–34
European Seed Capital Fund Scheme, 118–19
European Union, too small venture funds in, 118–19
European Venture Capital Association, local market investments of, 105–7
evaluation: failure to design, 14; institutionalizing, 186; need for, 142–52; randomization in, 150–52; regression discontinuity analyses in, 152; relying on success stories, 149–50
expatriates, entrepreneurial, 13, 28, 107–8
experience, as limiting factor, 143
externalities, positive, 67–68
failure: social sanctions against, 99; tax policies punishing, 98–99
Fairchild Semiconductor, 32; government contracts of, 35; origins of, 66
Faust, Drew, 81
Federal Telegraph Company, 33; spinoffs of, 33–34
financial analysis, of investment prospects, 52
financial hubs, Middle Eastern, 4–5
financing, rounds of, 54
Finland, entrepreneurship promotion in, 116–17
Finnish Industry Investment Ltd, 116–17
Finnish National Fund for Research and Development (Sitra), 116–17
firms: age of at time of public offering, 55; size and innovation in, 45–50
flexibility, 124–28; need for, 186–87
foreign investors: attracting, 183–84; interconnections with, 185–86; losing firms to, 108
Foundation for International Community Assistance, Peru, 100
France: incompetence in promoting high-technology entrepreneurship in, 74–76; OSEO-Garantie initiative in, 80; universities obtaining government subsidies in, 83
France Telecom, obtaining government subsidies, 83
Frantz, Mark, 178
French Telecom, public funding of, 76
Friis, Janus, 153
genomic sequencing firms, 149–50
Germany: criticism of foreign investment funds in, 170; WFG program in, 93
Gilson, Ron, 93
Giuliani, Rudy, 139
Global Entrepreneurship Monitor (GEM) survey: of 2006, 19; of 2007, 2; methodologies of, 193n2
global interconnections, importance of, 185–86
global investors, 101; attracting to entrepreneurial hubs, 12–13
global perspective: growth of, 28; importance of, 153–58
global standards, need to conform to, 182–83
Gobi Partners, funding of Lingtu, 56–57
Goldman Sachs, criticism of, 170
Gompers, Paul, 98
Gorman, Michael, 54
government: incompetence of, 73–80; pioneering Silicon Valley firm contracts with, 34–35; promoting entrepreneurship and venture capital, 10
government grants, piggybacking of, 144
government initiatives. See also public venture funding: appropriate circumstances for, 67–68; bad designs of, 111–36; careful evaluations of, 186; case against, 72–85; creating knowledge flows, 71–72; creativity and flexibility in, 186–87; direct, 109–10; effectiveness of, 65–86; flexibility of, 124–28; global post–World War II, 40–41; guidelines for, 16–17; historic background for, 25–42; implementation problems of, 14, 137–61; indirect, 90–92; intervening in entrepreneurial process, 13; problems with, 10–11; providing certification, 69–71; reasons for, 65–72; regulatory capture in, 80–85; role of in Silicon Valley, 33; setting structure of, 89–110; sizing of, 117–24; starting virtuous cycle, 66–69; strategies and limitations of, 12–14; timing of, 112–17; too large or small, 185; without results, 144
Great Depression, public funding and, 36
Griliches, Zvi, 72
growth sectors, identifying, 130–33
Guangdong province, entrepreneurialism in, 5
health care industry, venture funding concentrated on, 70
Heartland Seed Capital fund, 140
Heintz & Kaufman, 33
Heinze, Ralph, 34
Hewlett-Packard: founding of, 32–33; government involvement in, 34; profits of, 71
high-technology industry. See also semiconductor industry; Silicon Valley: in Malaysia, 113–15; pioneering firms in, 33–34; in Taiwan, 131–32
Hockfield, Susan, 81
holding companies, sovereign wealth funds as, 165
Hong Kong, private equity activity in (1992–2007), 31
Housing and Urban Development (HUD), U.S. Department of, TOP program of, 76–77
IBM: open PC architecture of, 131; partnering with Lingtu, 57
implementation problems, 14, 137–61, 191
In-Q-Tel, compensation scheme of, 176–78
incentives: innovation and, 48; not worrying about, 137–42; of outside managers, 190; perverse, 138–39
incubators: in Australia, 11; capturing government subsidies, 83–85, 91; for Internet firms, 149–50; in Japan, 157
independent approach, 175
Index Ventures, 154
India: concentration of venture capital in, 28; creating local markets in, 104–5; growth of entrepreneurialism in, 28; human capital in, 107–8
Industrial and Commercial Finance Corporation (ICFC), 40–41
information generation, leading to virtuous cycle, 66–67
information technology, venture funding concentrated on, 70
initial public offerings (IPOs): age of firms at time of, 55; in robust local markets, 105–6
innovation. See also technological innovation: early venture firm participation and, 55; government incompetence in promoting, 73–80; linked to growth, 43–45; new ventures spurring, 45–63; size and age of firms in, 45–50; social benefits versus profitability of, 71–72; in venture-backed firms, 50–55; venture capitalists’ impact on, 55–58
innovator strategy, 61
InQbator, public funding of, 84–85
instant industrialization, myth of, 33
Intel: founding of, 66; profits of, 71
Internet bubble, 148; investments during, 139–40
Internet-related companies, venture funding concentrated on, 70
Internet technologies: telephonic, 153–54; venture funding of, 149–50
investment: criteria for, 51–52; local, 141–42, 188–89; maintaining returns on in sovereign funds, 173–79; management strategies for, 15; rejection of, 52–53; staging of, 53–54; syndication of, 52–53
investment approaches: to avoid, 188–91; recommended, 181–88
investment prospects: decision-making criteria for, 52; screening of, 50–52
investors: domestic versus global, 101; global, 12–13, 101; institutional, 7, 93, 100-1, 141, 162, 172, 174–79, 182, 189; local, 101
Iowa: Public Employees Retirement Fund of, 140; venture investment in, 140–41
IPOs. See initial public offerings (IPOs)
Israel: globalized venture capitalism in, 155–57; successful venture funding in, 148; Yozma program of, 183–84
Ivy League schools: 2002–5 investment performance of, 173; venture capital investment by, 172
Jaffe, Adam, 152
Jamaica: economic growth in, 18–20; economic policy of, 194n6; negative productivity growth in, 20; World Bank’s 2008 analysis of, 19–20
Japan: globalized venture capitalism in, 157–58; pro-entrepreneurial legislation in, 92–93; proposed regulation of foreign investment funds in, 170
Japan Development Bank (JDB), localized focus of, 157–58
Jebel Ali port, building of, 2–3
Jeng, Leslie, 105
Jiangsu Province, venture fund of, 148
judgment sharing, 67
Kansas, incompetence in economic development in, 77–78
Kansas Public Employees Retirement System (KPERS), 77–78
Kaplan, Steve, 52
Karlan, Dean, 100
Kiribati Revenue Equalization Reserve Fund, 164–65
knowledge flows, creating, 71–72
Korea, criticism of foreign investment funds in, 170
Kortum, Sam, 62
Kuwait: Investment Office of, investment in British Petroleum by, 169; sovereign wealth growth in, 164; telecom industry in, 49
Labor Fund program, Canadian, 122
Landes, David, 166
large-firm superiority hypothesis, 45–46
“law and finance” literature, 73–74
laws, supporting entrepreneurial activity, 92–96
Lenovo, profits of, 71
liability, limited, 102
Liles, Pat, 37
limited partnerships: in Australia, 158; global investment by, 154; in global venture capital, 156–57
Lingtu, Gobi Partners funding of, 56–57
Litton Engineering, 33, 34; government involvement in, 34
loan guarantee programs, track record for, 80
local investors, home-field advantage of, 141–42
local markets: creating, 104–7; need to understand, 187–88; rules requiring investment in, 188–89
Lone Star, criticism of, 170
long-distance investment, 154–55
Lotus, profits of, 71
Louie, Gilman, 178
Louisiana, CAPCO program of, 141, 189–90
loyalties, divided, 190
LSI Logic, founding of, 66
MacIntosh, Jeffrey, 121
Malaysia: Advanced Microchip Design and Training Center project of, 114–15; BioValley complex in, 11; development of entrepreneurial activity in, 112–15
Malaysian Industry-Government Group for High Technology (MIGHT), launching of, 113
Malaysian Technology Development Corporation, 115
managerial capabilities, 51
Manley, Michael, administration of, 18
markets: attractiveness of, 51; ignoring dictates of, 13–14; providing direction, 183–84; relative sizes of, 101
Massachusetts, government subsidies in, 81
Massachusetts College of Liberal Arts, 81
matching funds: advantages of, 137–38; in attracting foreign investors, 183–84
mature industries, versus highly innovative firms, 60–61
McCarthy Weersing venture group, 140–41
McMicking, Henry, 34
medical devices, spawning in, 200n2
Medtronic, as entrepreneurship academy, 66
Microsoft, profits of, 71
Middle East: government debt in, 4; private equity investment in, 57–58; regional transport and financial hubs in, 4–5
military contracts, in Silicon Valley growth, 34
mission, distractions from, 143–44
Mitterrand, François, 74
Mobile Telecommunications Company, 49
Mohamad, Mahathis, 113
money chasing deals phenomenon, 174
Moore, David, 103
moral hazard problems, 80
Münterfering, Franz, 170
Murray, Gordon, 118
NASDAQ, number and size of IPOs on, 105–6
National Air Services (NAS): Abraaj Capital interest in, 57–58; reorganization of, 58
National Enterprise Board, funding of Celltech by, 145–46
National Semiconductor, founding of, 66
National University (Singapore), 90–91
natural resources, curse of, 166–67; sovereign funds addressing, 168
Netherlands, influx of wealth in, 166
New Deal, venture capital and, 36
New Margin, funding of, 32
new ventures, spurring innovation, 45–63. See also start-ups
New Zealand: Seed Investment Fund of, 183–84; Venture Investment Fund (NZVIF) in, 103–4, 132–35
Newbridge Capital, criticism of, 170
“Non-Obvious Relationship Analysis,” 177
North, Douglass, 73
Norway: Government Pension Fund of, 168, 172–73; natural resource revenue windfall in, 168; sovereign wealth from 1970s–80s in, 165–66; sovereign wealth growth in, 164; squandered oil wealth of, 11–12
NTT DoCoMo, partnering with Lingtu, 57
Oak Investment Partners, partnering with Lingtu, 57
Organisation for Economic Cooperation and Development (OECD), 76
outside management firms, poor incentives of, 190
overengineering, 184
oversight, by venture capitalists, 54
Oxford Instruments, funding of, 41
partnerships, 101–2. See also limited partnerships; in New Zealand, 103–4; true, 101–4
patents, 200n28; quality of, 63; venture capital for, 62–63
Patrick, Deval, 81
peer-to-peer technology, 153–54
personnel: compensation for, 176–78; hiring the best, 175–78
Peru, Foundation for International Community Assistance in, 100
petroleum revenue: in Norway, 165–66; as source of sovereign wealth, 163–64
Phoenix award, 99
Piercy, Lord William, 40
pioneering entrepreneurs: generating positive externalities, 67–68; low returns of, 68–69
policymakers, interest of in new ventures, 43–64
preferred stock, 53; convertible, 94–95
private equity: criticism and proposed regulation of, 170–71; late-stage, 7
product differentiation, 51
Prospect Street Ventures, 139, 140
Pseudo Programs, 139
public fund-of-funds structure, 134
public venture funding: in birth of venture capital, 35–41; boom-and-bust pattern and, 30–32; history of, 11–12; long lead times of, 184–85; need to understand, 188; in new venture activity, 8; social and financial goals of, 36–37
Puri, Manju, 61
race to the bottom, in EASDAQ, 106–7
Rahman, Omar Abdul, 113
RCA, in military electronics, 34
R&D spending: traditional corporate versus venture capital, 62–63; venture capital in, 61
R&D-to-sales ratio, 47
Reconstruction Finance Corporation, 36
Recruit, as entrepreneurship academy, 66
regional transport, in Middle East, 4–5
regression discontinuity analysis, 152
regulatory capture theory, 11, 80–85
resource deployment, global, 155
restructurings, 7
revenues, smoothing, 165
Rochester, University of: endowment of, 174
Rogers, T. J., 32
Roosevelt, Franklin D.: public funding under, 36
rules of thumb, recommended, 181–88
SaeHan Information Systems, knowledge spillover from, 71
Sahlman, Bill, 54
Sarbanes/Oxley corporate governance reforms, 104
Saudi Arabia, Abraaj investment in, 57–58
SBIC Reporting Service. See Venture Economics
Schumpeter, Joseph: large-firm superiority hypothesis of, 45–46
science parks, failures of, 115–16
scientific base, leveraging, 182
SDC Venture Economics, 200n25; data from, 199n20
seed companies, encouraging, 184
selection bias, 46
Sembenelli, Alessandro, 123–24
semiconductor industry: birth of, 32–33; Fairchild Semiconductor defectors in, 66
Shanghai municipal government, funding of New Margin by, 32
Shepherd, Stuart, 103
Shockley Semiconductor Laboratory, 66
Shockley Transistor, founding of, 32
Silicon Valley: entrepreneurial cluster formation in, 5, 33–35; geographical factors in growth of, 34; history of, 32–35, 196n10; Indian expatriates in, 107; local financiers of, 34; military contracts in growth of, 34; parochial venture capital funds in, 28; pioneering venture capital groups in, 8–9; Singaporeans in, 108; spin-off proliferation in, 33–34; venture capital concentration in, 26–28; venture capitalism in, 30, 35–41
Singapore: Biopolis in, 114; broad view of, 182; Economic Development Board of, 91; economic growth in, 18–20; economic policy of, 194n6; entrepreneurialism in, 5; global venture investment of, 91; human capital in, 108; indirect government initiatives in, 90–92; Ministry of Manpower of, 91
Singapore Investment Corporation, Government of, 179
Skyline Multimedia Entertainment, 139
Small Business Innovation Research (SBIR) program, 130; employment change in awardees of, 129; inflexibility of, 126–27; political and geographic pressures on awardees of, 129–30
Small Business Investment Companies (SBICs), 37–39; catalytic role of, 39; growth of venture capital industry after, 112; legacy of, 38–39; mandates of, 38; marginal firms participating in, 147–48; poor design of, 9; specialized program of, 39; stimulating venture capital, 10
small-firm stock markets: American, 106–7; European, 106–7
Solow, Robert, 44
sovereign wealth funds: challenges of, 14–16, 168–80; compensation and retention of staff in, 175–78; conflicting motives of, 174; creating small subsidiaries of, 178–79; defining, 15; legacy of, 165–68; maintaining returns of, 173–79; model approaches of, 175–79; multiple goals of, 164–65; with over $100 billion in assets, 163; overview of, 163–65; projected growth of, 164; visibility of, 168–73
spin-offs, proliferation of in Silicon Valley, 33–34
SPRING agency, 91
Stanford High Voltage Laboratory, 33
Stanford Research Institute, establishment of, 35
Stanford University, 33
state pension funds, poor investment approaches of, 175–76
Stigler, George, 82
stock options, rewarding employees with in Japan, 92–93
Stromberg, Per, 52
Sturgeon, Timothy, 33
subsidy lobby, 85
Summers, Larry, on dangers of sovereign wealth funds, 169
Sweden, independent pension funds of, 179
Systems Research and Development, 177
Taiwan: high-technology industries in, 131–32; incentive programs of, 202n19; successful computer industry in, 75
Tang, Nengzhe, 56
tax breaks, setting up, 189–90
Techno-preneurship Investment Fund, 91
technological innovation: economic growth and, 43–45; as economic spur, 9
technology. See also high-technology industry; technological innovation: ensuring access to, 96–97; licensing of, 182
technology transfer offices, 182
Tel Aviv: concentration of venture capital in, 28; entrepreneurialism in, 5; as venture capital center, 157
Telstra, BITS program and, 84
Tenant Opportunities Program (TOP), government incompetence in, 76–77
Toronto, concentration of venture capital in, 28
Torrent Systems, ATP funding of, 125–26
trade surpluses, 164
training, entrepreneurial, 99–100
transparency: need for in sovereign wealth funds, 170–73; too much, 171–73
UBS, Swiss government investment in, 1
UCB (Union Chimique Belge), Celltech acquisition of, 146
underachieving programs: factors in, 143–44; weeding out, 145
undiscovered investment classes, 175
United Arab Emirates (UAE): sovereign wealth growth in, 164; start-ups in, 2
United Kingdom: Celltech experience in, 145–46; gestation of venture capital industry in, 112; post–World War II economic growth in, 40–41; Small Firms Loan Guarantee Scheme in, 80; subsidizing Celltech, 11
United States: birth of venture capital industry in, 112; concentration of venture capital in, 26–28; failure to evaluate venture capital programs in, 147–48; government incompetence in economic development in, 76–80; publicly funded science parks in, 115–16; too small funding in, 117–18; venture activity influence on innovation in, 59–63; venture fund returns in, 79
university commercialization, federal funding of, 95–97
U.S. Small Business Administration, in early 1960s, 11
Valdivia, Martin, 100
Varian Associates, government involvement in, 34
venture-backed companies: compared to non-venture firms, 57; economic “weight” of, 58–60
venture capital: academic research on, 9; birth of, 35–41; encouraging innovation, 50–55; in European countries, 123–24; geographic distribution of, 27; government promotion of, 6–7, 10; government strategies to stimulate, 12–14; herding focus of, 70–71; need to evaluate, 142–52, 146–48; parochial focus of, 28; pioneering groups in, 8–9; providing certification, 69–71; reasons for policymakers’ interest in, 43–64; stage setting of, 191; U.S. returns on, 1974–2007, 29; virtuous cycle of entrepreneurship and, 66–69; Western government in, 1
venture capital funds. See also government initiatives; public venture funding: in Africa, 124; in Canada, 119–23; careful evaluations of, 186; diverse global locations of, 26–28; flexibility of, 124–28; global focus of, 155–57, 158; growth in, 25–26; imitating successful programs, 190–91; localized focus of, 157–58; minimizing agency problems in, 187; need for creativity and flexibility in, 186–87; need for education in, 187–88; need for global perspective in, 153–58; need for long-term commitment of, 113–17; returns of in Europe, 79; returns of in United States, 79; rules requiring local investment in, 188–89; sizing of, 117–24; targeting Internet and biotechnology firms, 149–50
venture capital industry: boom-and-bust pattern in, 28–32; failing to understand, 112–28; first formal, 36–37; first limited partnership in, 37; growth of in late 1970s, 39–40; increasing attractiveness of, 100–8; in New Zealand, 132–35; not listening to, 128–35; in 1990s, 29–30; too rapid growth in, 29–30
venture capital investment to GDP ratios, by country, 123
Venture Capital Marketing Association (Vickie Mae), 147–48
venture capitalists: early participation of, 55; generating positive externalities, 67–68; impact of on real firms, 55–58; influence of in highly innovative industries, 60–61; investing with other investors, 52–53; large-scale economic impact of, 58–63; oversight provided by, 54; rounds of financing by, 54; screening process of, 50–52
Venture Economics, 39
Vickie Mae. See Venture Capital Marketing Association (Vickie Mae)
Vonage, 154
Wal-Mart, Norway’s sale of shares in, 172–73
Warburg Pincus, investments in India of, 105
wartimes, in Silicon Valley growth, 34
Wells, Philippe, 105
Western economies, public interventions in, 1
Wilson, Jack, 81
World Bank, report on barriers to entrepreneurs, 19–20
World War II: government intervention in recovery from, 40; in Silicon Valley growth, 34–35
young firms, innovation in, 48–50
Yozma alumni club, 157
Yozma Venture Capital: global perspective of, 155–57; matching funds in, 183–84; success of, 148
Zennstrom, Niklas, 153
Zhejiang province, entrepreneurialism in, 5
Zucker, Lynne, 131