Promoting Informal Venture Capital: II. Co-Investing, Syndication and Indirect Investment Models

  • Annareetta Lumme
  • Colin Mason
  • Markku Suomi
Chapter

Abstract

The creation of a business introduction service removes a major barrier to the more efficient operation of the informal venture capital market by improving the flow of information between companies seeking finance and business angels. However, many investors also have other constraints on their ability to invest, including limits on the amount of finance that they have available for investing in unquoted SMEs, limitations on their expertise, the costs (monetary, and, in particular, time) of appraisal, monitoring and involvement, and uncertainty of exit routes. These can be addressed by other initiatives which encourage co-investment with venture capital funds, syndication between business angels and the pooling of investment funds. This chapter is concerned with these approaches.

Keywords

Venture Capital Private Investor Investment Opportunity Investment Fund Private Individual 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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End Notes to Chapter 14

  1. 1.
    In the early and mid-1980s in Finland a number of so-called ‘development companies’ were established which took majority equity stakes in companies in various industry sectors. Many of these investments subsequently proved to be high risk and many were lost.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Annareetta Lumme
    • 1
  • Colin Mason
    • 2
  • Markku Suomi
    • 3
  1. 1.Kera Ltd.UK
  2. 2.University of SouthamptonUK
  3. 3.Helsinki University of TechnologyFinland

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