TLDR:
- The venture capital universe is surrounded by myths and the reality is different
- The European Commission and the European Investment Fund are supporting start-ups and innovation in various sectors
The article discusses the compelling narrative of venture capital as a way to energize the economy and transition to the knowledge economy. While tech giants like Apple, Facebook, and Google are celebrated, the reality of the venture capital universe is complex. The EU has launched initiatives like VentureEU to address Europe’s equity gap and attract private funding into the venture capital asset class. Definitions of venture capital vary, but it typically involves financing for start-ups and small businesses with potential for long-term success. The article also debunks the myth that venture capital is cheap and comes with no strings attached, highlighting that venture capitalists charge annual fees and profit percentages. The start-up boom is attributed to policies based on myths about entrepreneurship and start-ups, according to Marianna Mazzucato. She emphasizes the importance of innovation ecosystems for the success of start-ups, particularly in the emerging green innovation ecosystem. The article concludes by suggesting that smaller countries partner with the private sector to benefit from larger countries’ innovation ecosystems and avoid wasting public money.
