Spur innovation by venture capital

الملخص EN

Venture capital is a specialist form of professionally managed finance designed to meet the financing needs of emergent firms, particularly in technology sectors, which are pursuing significant growth opportunities and which offer the prospects of high return.

The finance is provided on a medium to long term basis in exchange for an equity stake.

Access to venture capital gives firms advantages that translate into innovation, fast growth and job creation, hence they make a disproportionate impact on economic development.

However, venture capital investment activity is highly concentrated in just a few regions – on account of the clustering of venture capital investors in a small number of cities and the localization of investing in order to minimize risk.