The "Double Market" approach in venture capital and private equity activitythe case of Europe

  1. Balboa Ramón, Marina
  2. Martí Pellón, José
Revista:
Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

ISSN: 1988-8767

Año de publicación: 2010

Número: 515

Tipo: Documento de Trabajo

Otras publicaciones en: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

Resumen

This paper aims to contribute to the understanding of the factors that determine fundraising and investment in the private equity market in Europe. These are analysed separately, since the lags faced in this activity determine the existence of two separate markets. As a result, private equity institutions deal with different agents, namely investors (fundraising) and firms (investment), whose link with the market is affected by different determinants. The results show that liquidity and the size of the local market are the main factors determining fundraising whereas liquidity and research and development expenditure determine investments in early stage firms.