Financing high growth firms -from soft to hard money

The case for Government involvement Lack of finance Lack of risk taking culture Lack of skills: -Entrepreneurs -Venture capitalists -Institutional capital Lack of entreprenurial culture

Supporting new technologies by soft loans Change of regime Former (technology push): Supporting new technologies by soft loans Costly - focus on getting more subsidies New (demand Pull): Business Development by coupling manegerical capability with capital Focus on consumers and profits

Investing in venture funds Dual strategy Investing in venture funds Co-investing directly in companies Market based

Capital: Venture investments Venture investments 1999-2001 and 2000-2002 (% of GDP) 1999-2001: No. 11 2000-2002: No. 8  Venture Capital: Seed, start-up and expansion Source: EVCA (2000, 2001, 2002)

Capital: Early-stage investments (% of GDP) 2001: No. 3 2002: No. 2  Early-stage-investments: Seed and start-up Source: EVCA (2000, 2001, 2002)

Seed investments - market share Strong growth in Denmark