Venture Capital

Paper Summary:

This paper explains the decision of both 3i and Apax Partners (Apax) companies to discontinue funding seed and early-stage investments that underlines the European venture capital's (VC) unhealthy state. The research project investigates the reason for this action, the venture capital (early-stage investments) industry's performance in the UK and Europe and the implications of this decision. The author utilizes information and data retrieved from researched literature and from interviews with five individuals currently "employed" in positions relating to financial management or VC. These interviews are included in the paper.

Table of Contents:
Introduction: 3i and Apax Partners
Study Focus
Aim and Objectives
Hypothesis
Study Structure
Significance of this Study
Analysis
In Corporate Venturing
Interviews Created, Conducted and Considered Reveal
Interview 1
Interview2 Interview 3
Interview 4
Interview 5
Key Facts
The Value of Efforts
Apax Partners
History
Investment Requirements
Changes in the Company
3i
History
Landmark Deals
Changes in the Company
Conclusion: Future Implications for Venture Capital in the U.K. And Europe
Appendix: Complete Interviews

From the Paper:

"British merchants financed the UK's commerce in the 1700s, while a century later British venture capital built this country's railroads. For the majority of the previous four centuries, capital flowed west across the Atlantic to New England. In 1999, however, J. Scott Burns, a London-based attorney for Brown, Rudnick, Freed & Gesmer, an international law firm based in Boston, notes, today, "the Yankees" are UK investors and when they arrive in the UK, they invest in hot high-tech companies in the country."

Sample of Sources Used:

• Ahlstrom, David, and Garry D. Bruton. "Venture Capital in Emerging Economies: Networks and Institutional Change." Entrepreneurship: Theory and Practice 30.2 (2006): 299+.
• Blackburn, Robert A., and David Smallbone. "Researching Small Firms and Entrepreneurship ithe U.K.: Developments and Distinctiveness." Entrepreneurship: Theory and Practice 32.2 (2008): 267+.
• BVCA Private Equity and Venture Capital Performance Measurement Survey 2007 2008.PricewaterhouseCoopers LLP. Birmingham UK.
• Cogman, David, and Jeremy M. Oppenheim. "Controversy Incorporated: Companies That Address the Social Concerns Surrounding Contentious Markets May Well Find the Effort Rewarding." The McKinsey Quarterly (2002): 57+.
• Miles, Morgan P., and Jeffrey G. Covin. "Exploring the Practice of Corporate Venturing: Some Common Forms and Their Organizational Implications." Entrepreneurship: Theory and Practice 26.3 (2002): 21+; Baylor University.

More papers on Venture Capital:

• Research Paper # 89439 : "The Venture Capital Market in China's IT Industry"
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• Research Paper # 71648 : "Venture Capital Companies "
• Essay # 116680 : "Venture Capital Financing"

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