The United States has the oldest and most developed venture capital industry in the OECD. Several successful high-technology companies in computers and communications, as well as in healthrelated sectors and services, were venture-backed. Young high-growth firms also benefit from a continuum of complementary finance from business angels, institutional investors and second-tier stock markets. The government played an active role in the early phases of the venture capital industry through the Small Business Investment Company (SBIC) program and various technology development schemes. A reduction in capital gains tax rates and liberalisation of rules for pension fund investments in risky assets in the late 1970s also unlocked new capital sources. Venture capital activity, however, has been quite cyclical. Periods of high fund-raising and investment in the 1980s and 1990s were followed by market downturns with negative effects on small firm survival and growth. Fundamental structural ...
Venture Capital Policy Review
United States
Working paper
OECD Science, Technology and Industry Working Papers
Share
Facebook
Twitter
LinkedIn
Abstract
In the same series
-
24 October 2024
-
16 October 2024
-
15 March 2024
-
Working paper2 February 2024
Related publications
-
30 July 2024