Law and Development of the Venture Capital Market
DOI:
https://doi.org/10.11606/issn.0102-8049.ip%25pPalavras-chave:
venture capital, corporate law, startups, corporate governance, corporate finance, contract lawResumo
The venture capital industry plays an important role in financing
of startups. Several countries have adopted measures to promote the
activities of innovative companies, as well as venture capital (VC)
investments. Scholars examine various economic and institutional
factors that determine VC investment levels across countries. The
objective of this article is to analyze how law can influence the
development of the venture capital market. To this end, it presents
a literature review on the legal aspects considered essential for the
growth of VC markets in various countries, focusing on corporate
law aspects. The article identifies that law may impact the VC market
through three central elements: (i) the availability of capital in this
sector; (ii) the existence of appropriate legal institutions to enable
the activities of financial intermediaries; and (iii) the existence of a
favorable environment for the development of innovative businesses
by entrepreneurs.
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