Do venture capitalists really invest in good industries? Risk-return perceptions and path dependence in the emerging European energy VC market
Journal
International Journal of Technology Management
ISSN
0267-5730
ISSN-Digital
1741-5276
Type
journal article
Date Issued
2006-01-01
Author(s)
Abstract
Venture Capital (VC) plays an important role in the
commercialisation of innovation. Sectors like information and communication technologies and biotech account for two-thirds of all VC investments. Little attention has been paid to understanding how the venture capital market extends to new industries. Based on a survey of European energy technology VCs, we discuss the factors determining the emergence of a new market sector for VC investments. While there are sizeable investment poportunities, only 2-5% of all venture capital is invested in energy.
Three factors can help explain differences between energy and other more popular VC sectors:
- the perceived risk (market adoption risk, exit risk, technology risk, people risk, and regulatory risk) of investments in energy technologies
- the perceived returns in energy VC investments
- in an evolutionary perspective, the maturity of energy as a VC investment sector.
See also [http://www.inderscience.com/search/index.php?action=record&rec_id=9448&prevQuery=&ps=10&m=or International Journal of Technology Management]
commercialisation of innovation. Sectors like information and communication technologies and biotech account for two-thirds of all VC investments. Little attention has been paid to understanding how the venture capital market extends to new industries. Based on a survey of European energy technology VCs, we discuss the factors determining the emergence of a new market sector for VC investments. While there are sizeable investment poportunities, only 2-5% of all venture capital is invested in energy.
Three factors can help explain differences between energy and other more popular VC sectors:
- the perceived risk (market adoption risk, exit risk, technology risk, people risk, and regulatory risk) of investments in energy technologies
- the perceived returns in energy VC investments
- in an evolutionary perspective, the maturity of energy as a VC investment sector.
See also [http://www.inderscience.com/search/index.php?action=record&rec_id=9448&prevQuery=&ps=10&m=or International Journal of Technology Management]
Language
English
Keywords
Venture Capital (VC)
innovation
renewable energy
technological
change
change
path dependence.
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Inderscience Enterprises Ltd.
Publisher place
Geneva-Aeroport
Volume
34
Number
1/2
Start page
63
End page
87
Pages
25
Subject(s)
Eprints ID
30051
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