ABSTRACT
The first recommendation is for the reform of the policies of fiscal intervention operating. It has been conclusively demonstrated (and it is, anyway, widely understood) that the BES had little impact on the equity gap. The starting point for a policy of fiscal intervention is a clear understanding of the specific problem that it is being created to address, in this case the bridging of an equity gap. One of the most interesting of venture capital in the 1990s has been the development of the informal venture capital market and the emergence of a network of BIS. Whilst Harrison and Mason’s early research suggests that by no means all investors will make a profit from their involvement as business angels, the potential of this source of finance for bridging the equity gap is enormous. This study has confirmed the poor performance of the institutional venture capital industry in undertaking and producing significant returns from small and early-stage investments.
