ABSTRACT
Venture capital (VC) is a form of financing, provided to start-ups at various stages of development, especially to those that are deemed to have huge potential for high growth and returns. Venture capital firms or funds invest in these early-stage companies in exchange for equity, that is, an ownership stake. Countercyclical venture capital consists of an array of venture capital entities that are an expression of the strands of the triple helix as well as hybrids among them, including such public/private entities as foundations. Collaborations among organizations with a long-term perspective increase the solidity of their commitment to early stage investing as well as the amount of funds available. The Chinese science park experience indicates the importance of developing the investment system through combining venture capital with social capital and cultural capital. An early-stage investment gap in firm formation opened up as venture capital became similar to traditional financial institutions.
