• STI Policy Review
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• v.1 no.4
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• pp.21-28
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• 2010

This study analyzes the establishment of venture companies and the interaction of venture ecosystem components (the core factors of venture ecosystems) with a focus on venture companies, venture capital, and the return market. Government support policies are understood as a catalyst for the venture ecosystem and this study will analyze the implications of government involvement by identifying the role of government policies in the venture ecosystem. According to the results of the empirical analysis with data on confirmed venture businesses by the Small and Medium Business Administration (SMBA), policies that provide direct support to venture companies did not have a significant influence on the establishment of new ventures. However, new investments by venture capital show a statistically significant positive effect and signify that the new investment is an important factor in vitalizing the establishment of new venture businesses and that the economic conditions of the return market have a positive effect. The establishment of venture businesses responds to the changes in real and vertical markets with greater resilience compared to government policies. Given the unique nature of the Korean venture ecosystem that responds to the market with greater resilience than government policies, there must be increased efforts to recover the confidence of the capital markets for venture capital in order to promote improved efficiency.

• STI Policy Review
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• v.7 no.1
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• pp.66-86
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• 2016

This paper discusses government-backed venture capital as a science, technology and innovation (STI) policy instrument from the Chinese perspective. China aspires to overhaul its growth model by vigorously promoting technological innovation and entrepreneurship. Like many other countries, however, funding gaps constrain new technology ventures in the early stages of venture development. To plug this gap, China attempts to use government-backed venture capital as a policy instrument. Super-size central government-backed VCs were set up and dozens of similar schemes are in operation at local levels. This paper provides a case study of such government-backed venture capital schemes in China. It documents the background conditions explaining the country's need for public venture capital, describes the distinct features of program design in such schemes, and assesses the impact of government-backed venture capital.

• The Journal of the Convergence on Culture Technology
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• v.6 no.1
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• pp.121-133
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• 2020

This study examines the most recent successful venture development practices in the United States, Israel, Germany, Finland, and China. The purpose of this study was to find out which foreign country's venture promotion policy is appropriate to korea, why foreign country's venture policy is appropriate to korea and why it is not appropriate, and to draw policy implications for domestic venture promotion and development. The research method was conducted by 50 panel of venture experts using Delphi research technique called 'expert consensus'. As a result of the Delphi research, Finland's venture promotion policy has received the highest evaluation in the usefulness, ease and suitability. Like Finland, the establishment of venture ecosystem through organic activities of private, government, industry, academia, and research was analyzed as the first priority for domestic venture policy. Analyzed. In addition, it was analyzed that the venture policy followed by the private sector under the government's strong promotion policy was no longer appropriate.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.8 no.4
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• pp.900-914
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• 2007

The purpose of this study is to analyze the actual conditions of Busan venture-ecosystem in mind that venture-policy is to be propelled actively for revitalization of local economy and improving the rate of joblessness in Busan. The Analytic framework is the concept of venture-ecosystem which is focused on interaction between the venture business and the environment. Because it has provided the conceptual frame of the venture-policy to make venture-friendly environment. Period of analyzing Busan venture-ecosystem is from 2004 to 2006 because venture-policy was changed greatly by participation government sailing. According to study finding, Busan venture-ecosystem is very weak in both quantitative and qualitative side. And it is estimated that the situation of Busan venture-ecosystem is high to be worsed by participation government's policy change. Also, venture policy and measures of Busan area shows that diversification of support target is urgent because of being overemphasized in IT industry.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.3 no.3
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• pp.203-209
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• 2002

The Korean venture industry showed a rapid growth due to various government incentive measures, development in information technology, and explosive growth of the KOSDAQ market. Recently, however, the Korean venture industry has revealed numerous side effects, which seemed to be coming from excessively aggressive government involvement in the industry, and fallen into a deep depression. This phenomenon may imply that the Korean venture industry has been established by the government policy rather than based on the venture capital market, whereas the venture industry in advanced nations has grown up autogenously based on it. This paper analyzes the Korean venture capital market and suggests policy recommendations to revitalize the domestic venture capital market. They include facilitating the supply of funds through limited partnerships and overseas venture capital, extending the direct equity investment, and actively promoting the KOSDAQ market.

• Journal of Information Technology Applications and Management
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• v.29 no.4
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• pp.1-16
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• 2022

This study analyzed the policy dilemma for ICT SMEs venture companies that changed after COVID-19 based on the results of the cognitive map analysis for ICT SMEs venture policies. First, as a result of analyzing the cognitive map of ICT SMEs venture companies that have changed since COVID-19, ICT venture companies are expanding support for ICT venture companies due to the threat of COVID-19. However, in order to convert COVID-19 into an opportunity factor, it also shows a policy direction to achieve innovative growth by creating a new market through non-face-to-face industry revitalization based on digital transformation (digital new deal). As a result of the study, the policy measures of supporting DNA-centered convergence innovation technology, digital transformation (digital new deal), fostering ICT startups (K-Global project), and expanding support for ICT SMEs did not have a policy dilemma. However, although many support has been expanded for ICT SMEs due to COVID-19, it is difficult to find and foster ICT start-up companies, and globalization problems are occurring due to the decrease in exports to COVID-19, making it difficult to create new markets. There is a negative (-) perception of causality that ICT SMEs venture companies may face risks as jobs decrease and innovative growth cannot be led to the revitalization of the non-face-to-face industry. Therefore, it was found that both the flow of causal relationship between the expansion of support for ICT SMEs and the high growth of ICT SMEs is not + and has a policy dilemma in part.

• KDI Journal of Economic Policy
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• v.30 no.1
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• pp.211-246
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• 2008

This paper evaluates the role of Korean government in the venture capital industry, in particular in the stages of fund-raising and venture investment. Utilizing data from Korean Venture Capital Association (KVCA), the analysis is conducted for the venture boom and post-boom periods separately. Empirical results show that the government played a significant role in the fund-raising stage in both venture boom and post-boom periods. When it comes to the investment stage, however, the empirical results indicate that the government did not accomplish expected roles. In particular, the government failed to induce investments in the outside funds of which the government had a larger stake toward early-staged firms and guide common stock investments during the venture boom period. The empirical outcomes also show that the government has not properly increased venture investments on high-tech industries during the post-boom period. This paper argues tentative reasons why the policy failures were observed in relation to the policy implications and provide several pieces of supporting evidence.

• KDI Journal of Economic Policy
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• v.35 no.1
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• pp.63-101
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• 2013

'Venture firms' in Korea are the firms who are certified as 'venture', whose certification types are defined by a law ('Special Law for the Support of Venture Firms'), and therefore encompass not only the venture capital-financed companies, which are usually regarded as ventures in USA and European countries, but also other types of firms such as R&D-intensive firms and the firms with financial guarantee or loans through technology evaluation ('technology finance or loan firms'). This paper examines the differences in the Korean venture firms' growth between the venture certification types. For the empirical analysis, this paper uses the lists of venture-certified firms from 1998 to 2010 which are then linked with their financial data in Korea Enterprises Database (KED). According to the results of empirical analyses, the companies in the 'venture capital-financed firms' type show greater growth rate in sales and the number of regular employees 3 and 5 years after first venture certification than the firms in type of 'technology finance/loan firms'. Moreover, the newly certified companies in 'R&D-intensive firms' type are also showing faster growth than the 'technology finance/loan firms' since 2003 where the venture industry has undergone a consolidation phase after the blast of so-called 'IT venture bubble' in 2001~2002. These results imply that the so-called 'venture firms' in Korea are composed with heterogeneous firm groups with different characteristics and that the companies selected through market mechanism ('venture capital-financed firms') outperforms the companies selected on the basis of policy interests ('technology finance/loan firms') in terms of the growth in sales and employment. On the basis of these findings, this paper suggests that the current venture-support policy should consider the different policy demands of firms across the type of venture certification more actively and that should refocus the objective of policies on facilitating venture capital market rather than emphasizing the nominal increase in the number of venture-certified firms.

• STI Policy Review
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• v.5 no.1
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• pp.75-97
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• 2014

Entrepreneurial financing, such as publicly initiated venture capital or grant schemes, serves as an important policy instrument that aims to bridge the financing gap facing young, innovative businesses, a gap that is mainly due to higher risk and growing uncertainty, and to strategically promote the creation of new ventures through the revitalization of their venture capital industries. This study examines public venture capital initiatives in Australia, Canada, and Sweden, and discovered that all three countries actively foster their venture capital industry through the formation of funds or the provision of tax incentives. It is notable that the majority of financing initiatives heavily depend on supply-side measures rather than demand-driven policies that focus on stimulating private investment in technological innovations and discoveries. This paper discusses in-depth the policy impact of public financing initiatives and their subsequent side-effects raised in the process such as overlapping in funding structure across the country, lack of monitoring and evaluation for feedback, fragmentation across the government ministries and agencies, and competition with the private sector, which may cause inefficiency as a result of public intervention. Financial constraints may arise for many reasons, partly resulting from the lack of investment readiness of young entrepreneurs. This signals a policy shift towards the creation of market-driven demand away from the traditional supply-push approach, and is a grand challenge to policymakers in entrepreneurial financing. Attention is leaning towards the efficiency and effectiveness of these public-financing initiatives in terms of their policy roles. It is worth noting that policy should focus on generating synergy so available resources can be channeled into the early, risky stage of new ventures, working as facilitator to the achievement of an intended policy goal.

• Asian Journal of Innovation and Policy
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• v.11 no.3
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• pp.277-292
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• 2022

This study examines the implications on the valuations of privately held firms when stakes are acquired by venture capitalists in India. In addition, the effect of fund size and revenue multiple is considered as a determinant of firm value. The study is based on a sample of 1229 rounds of funding during the period 2007-2015. The data was obtained from Venture Intelligence. Three major observations emerged based on an OLS regression. Firstly, it is observed that the stake acquired by venture capitalists has a negative effect on firm value. It supports the belief that when a firm reaches its maximum valuation from the promoter's perspective, there is a tendency to liquidate additional stakes. Secondly, a positive association between the revenue multiple and valuation is recognized. Thirdly, the convex relationship (U-shaped) between the fund size and firm valuations as seen in the case of developed economies, appears to be non-existent in India.