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Public Policy, Venture Capital and Entrepreneurial Finance

Type of publication Not peer-reviewed
Publikationsform Contribution to book (non peer-reviewed)
Publication date 2010
Author Keuschnigg Christian,
Project Corporate Finance, Taxation and Economic Performance
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Contribution to book (non peer-reviewed)

Book Venture Capital. Investment Strategies, Structure, and Policies
Editor , Douglas Cumming
Publisher John Wiley & Sons, NJ USA
Page(s) 525 - 552
ISBN 9780470499146
Title of proceedings Venture Capital. Investment Strategies, Structure, and Policies
DOI 10.1002/9781118266908.fmatter


Venture capital has become an important source of financing young entrepreneurial firms. Venture capital backed firms are often perceived as more innovative and as creating more value than others. Perhaps for this reason, policy makers are keen to create a good institutional framework to facilitate the development of an active venture capital industry. We explore the role of tax policy in determining the incentives of individuals to start up new firms and of venture capitalists to finance and advise them. In particular, we examine how business taxation together with start-up capital subsidies affect the volume and quality of venture capital backed entrepreneurship.