Analysis of Economic Factors Influencing Venture Capital Investment in European Countries

Abstract

This study is devoted to a comparative analysis of the level of venture capital funding in Europe. The goal of the study is to identify economic factors, which determine the activity of venture capital in the country. We considered a relationship between a volume of venture capital in a country and indicators of economic development such as gross domestic product, investments into research and development, turnover of innovation enterprises and others. Also we paid special attention to possibility of de-investment via initial public offering within a country. Applying modern techniques of data analysis, we discovered significant relationships effects of specified indicators on a volume of venture investments.

Keywords: venture capital, regression analysis, cluster analysis, factor analysis