Venture Capital Markets in APEC Economies（一）.pdfVIP

The 2nd Annual Conference of PECC Finance Forum Issues and Challenges for Regional Financial Cooperation in the Asia-Pacific Hilton Hua Hin Resort Spa, Hua Hin, Thailand July 8-9, 2003 SessionⅣⅣ: Financing SMEs: Issues and Options from the Ecotech Perspective ⅣⅣ Venture Capital Markets in APEC Economies Kimball Dietrich Associate Professor Finance and Business Economics Marshall School of Business, University of Southern California Venture Capital in APEC Economies J. Kimball Dietrich U.S. PECC Research Coordinator 2nd Annual Conference of PECC Finance Forum, July 9, 2003, Hua Hin, Thailand Venture Capital • Private equity in U.S. versus venture capital – Typically funds managed for institutions are exempted from Securities and Exchange Commission restrictions due to their “sophisticated” nature of investors • Several forms of private equity – High risk investments (distressed debt, leverage buyouts) – Venture capital 2nd Annual Conference of PECC Finance Forum, July 9, 2003, Hua Hin, Thailand Small-Firm Finance • Traditional lenders (banks) solved many problems with collateral and other terms • Challenge of informationally opaque investments – Little or no collateral available – Unproved technology – Untried product market – Production challenges • Typical examples – Biotechnology, software, communications 2nd Annual Conference of PECC Finance Forum, July 9, 2003, Hua Hin, Thailand Venture Capital Attributes • Private equity and venture capital in United States has evolved freely in largely unregulated markets for capital • Invest