Share this page
| More

Monday 13 June 2016

Venture capital and its French exception: Explaining performance through human capital, policy and institutional failures

The article "Venture capital and its French exception: Explaining performance through human capital, policy and institutional failures" written by Miona Milosevic and Jacqueline Fendt has been published  online in Science and Public Policy

Abstract:
We examine the venture capital (VC) industry and its French exception. While it is evident that French funds underperform in comparison to both their Anglo-Saxon counterparts and their immediate neighboring countries, the determinants of this phenomenon are unclear. Through an exploratory, inductive study among French expert venture capitalists we conceptualize VC agency as a process of construction of expertise through deliberate practice. We show how the specificities of the French VC market, first, the dominance of banking/finance professionals, grounded in the industry’s banking antecedents; and second, the prevailing public funding and numerous front-end tax incentives, hamper this process of deliberate practice and act as mutually reinforcing levers of inefficiency. We discuss the implications for scholars, practitioners and policy-makers.

Miona Milosevic is a Ph.D. Student. This article is a part of her dissertation project "Three essays on venture capital and public policy", supervised by Prof. Jacqueline Fendt.

Jacqueline Fendt is professor of strategy and entrepreneurship at ESCP Europe and Scientific Director of the school’s Chair of Entrepreneurship. She holds bachelors in organization science and business administration (distinction), an MBA from GSBA/Boston University and a Ph.D. in organization science (cum laude) from Leiden University, Netherlands.

<- Back to: News