The institutionalisation of venture capital

Venture capital has changed under the influence of a new generation of industry participants. Competition for ever increasing pools of capital, combined with an increasingly homogenized experiential background for venture capitalists world-wide, has resulted in increased risk aversion and a preference for later stage investments than were the standard when the industry first achieved prominence. Thus, government efforts to encourage economic growth through venture capital initiatives will fail unless these programs are carefully targeted toward those able to actively support portfolio companies through skills honed in the workplace.