Risk Capital in Austria: Supply and Demand Side Explanatory Factors and Policy Recommendations
Risk capital is a significant element of the national innovation system, and plays a substantial role for the funding of innovative, growth oriented SMEs. The economic and financial crisis induced a decrease of the market size both in Austria and in the EU. A recovery is not yet in sight, which causes financing problems for young, innovative SMEs which rely on this market segment. This issue is aggravated in Austria, whose risk capital market had already been underdeveloped before the crises. Against this background the present study depicts the underlying mechanisms and dynamics, and derives conclusions for the sector's regulation and the relevant company-law in Austria.