Is the growing wealth the driving force for venture capital fundraising in Europe? An empirical analysis

ABSTRACT

There has been no study aimed to determine to what extent the growth of wealth, on a global scale, contributes to stimulating investments in high-risk ventures. This article intents to answer the question: Does the growing wealth drive venture capital fundraising in Europe? Additionally, we will calculate short-term forecasts of the increased-risk capital market for the years 2015–2017. Recognition of the factors impacting the vc/pe market allows stimulation of development of the increased-risk capital. Venture capital serves as a source of financing of prospective projects, stimulates innovation and promotes small and medium enterprises. Owing to counteracting unemployment, this capital economically supports development of countries.

KEYWORDS:

• Venture capital market
• fundraising
• econometrics
• empirical research
• forecasting

JEL CLASSIFICATION:

• A11
• C01
• D31
• E21
• E44

Disclosure statement

No potential conflict of interest was reported by the author.