The development of venture capital:macroeconomic, political and legal determinants

In this paper, we provide a framework for theoretically identifying these variables and present empirical evidence for their impact on VC investment activity. For each factor, we discuss the critical issues associated with its measurement for econometric analyses. We then survey the existing evidence with regard to the effects of MPL and the rule of law on the development of VC investments, the management of companies and exits from investments.