How Venture Capital and Government Policy Impact Startup Ecosystems
Introduction:
It would be easy to say that all it takes to create a successful startup is: talent, an idea, and some money. A good VC analyst knows that much more goes into the startup success formula, things like a readily addressable market and a sustainable competitive advantage. A great VC analyst can understand those finer details and coalesce them, crafting a greater image of the macro environment. And within that macro environment is where the real dominant player lies: government. When venture capital firms are at the ground level supporting entrepreneurs, governments determine beforehand the infrastructure and regulations that make these interactions possible. And while it’s in the government’s best interest to develop these innovation ecosystems, misguided policies can influence how firms grow and survive.
This paper will explore:
- Venture Capital’s role at the local level,
- How Government can help the Ecosystem/VC. And,
- An Industry Example: Fintech
Venture capital and government, both integral players in the entrepreneurial ecosystem, have the ability to enact small changes that can create a substantial impact on the lives of individual entrepreneurs, and can ignite a country’s true growth potential.
Part 1:
Dynamic ecosystems for entrepreneurship start with dynamic components, and any government that wants…
