Drivers of Venture Capital across countries

Abstract

Starting with an introduction of the main features of venture capital and the state of the global industry, this dissertation intends to investigate further the determinants of venture capital in countries by building an empirical model that test whether specific selected factors help explain the level of venture capital investments. The model includes already studied factors to prove and confirm their influence, but also add new determinants with the modest goal of expanding the already existing field of research. We use aggregated market data from the Refinitiv Eikon venture capital database as well as macroeconomic data, to estimate a panel data model with random effect (RE) and feasible generalised least square (FGLS) techniques of analysis. The results confirm some of the already studied factors and highlight new relations with new variables.