How does venture capital stimulate innovation?
There is a correlation with venture capital and bright ideas being turned into viable businesses. This is because venture capital invests in concepts or businesses at the very early stages of their development. This relationship is only reinforced in today’s difficult financial climate, as credit becomes scarce and banks become more risk-averse, venture capital becomes an important investment source for businesses or business ideas that have little or no track record. With one of the best pools of academic and corporate research, access to low cost R&D in Eastern Europe and a blanket of mobile networks and high broadband penetration permeating the consumer market, UK venture capital is poised to take advantage of the opportunities within Europe and create strong returns. Significantly today’s fastest-growing technology, including medical research and clean energy companies, are backed by venture capital. Firms backed by venture capital invest more in R&D than other firms – up 12% (over
