Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


European  governments intervene in almost half of all venture capital investments for entrepreneurs, according to new research from emlyon business school.

The researchers, Yan Alperovych and Anita Quas, Professors in Finance at emlyon business school, and their colleague from Ghent University, wanted to gain a panoramic view of the European venture capital market, and determine the influence that governments had on investments.

Using four separate investment databases, the researchers reviewed 55,000 individual venture capital investments, spanning across 25 separate European countries between the years 1997-2015. The researchers then identified whether these investments came from privately-owned firms, government-owned firms (GVCs) or privately-owned firms which had government limited partners (GLPs).

It appears that government presence in the European venture capital market was much higher than previously documented. In fact, the researchers found that in an average year European government bodies were involved in 42.2% of all venture capital investments – with GVCs making up 12.5% and GLPs making up 29.7% of these.

The researchers also found that of both GVC and GLP channels of investment, it was only the GLP channel which had actually significantly improved companies and entrepreneurs’ access to finance.

Yan Alperovych said,

‘This government intervention is an attempt to correct the equity gap problem – assuming there is one of course.This problem emerges due to the lack of funding for entrepreneurs whose projects may be too opaque or potentially morally hazardous. Hence,the government steps in to fund these projects instead or along with other investors. This is, arguably, good for ventures which most likely would have been turned down by private firms – now they actually have an increased chance to gain funding through government initiatives.’

Government intervention in this market being actually higher than previously documented implies that we need to re-evaluate the government’s role and implications in terms of the broader economic consequences for ventures. For the future, however, the research shows that governments seem to learn or at least evolve in their approaches to how they structure their VC initiatives.

If you would like some more information, or to speak with Yan Alperovych or Anita Quas, please do get in touch with Peter Remon, at BlueSky PR

Continue Reading

Recent Posts