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- Title
On the Development of American Venture Capital Industry: A Dynamic Evolutionary Process.
- Authors
Hongzhu Yao; Sulin Pang; Feiqi Deng; Yongqing Liu
- Abstract
The development of venture capital industry is, in nature, a dynamic evolutionary process, in which it is crucial to explore its evolutionary rules. In order to explore those rules, we examine venture capital industry in the United States context from the dynamic evolutionary angle. We analyze vc development by dividing its history into five evolutionary phases, including the naissance of venture capital, the active government support, the stagnancy and emergence of a new organizational institution, the establishment of the related law system, the maturity and well-rounded development ones. Based on the empirical analysis of characteristics of each evolutionary phase, we analyze the primary factors contributing to the evolution of the respective phase and further describe the influential relationship by means of establishing influential models. On the basis of above work we commit ourselves to probing into a few evolutionary rules hidden in the development process of venture capital in the United States. This study argues that the evolutionary process of vc industry requires a certain evolutionary period of time to complete several necessary dynamic processes that consist of the processes of constructing and improving the operating kernel of venture capital activity, setting up the organizational institution, establishing and perfecting the law system to protect venture capital, and, on the premise that the function of market is relatively weak, the necessary support period from the government. Apparently it will be worthy using all these evolutionary rules for reference when any country will develop or is developing venture capital industry.
- Subjects
UNITED States; VENTURE capital; CAPITAL; INVESTMENTS; SYSTEMS theory
- Publication
Journal of Systems Science & Information, 2005, Vol 3, Issue 2, p239
- ISSN
1478-9906
- Publication type
Article