ABSTRACT
Innovative companies and, more generally, small and medium-sized enterprises (SMEs) are key components of European economies. Venture capital companies are growing rapidly because of their participation in the growth of Germany's biotech and information industries. They might be described as pools of investment capital, which are then passed on to SMEs. Venture capital is investment capital that is given for a limited period of time to young enterprises, which are in a phase of low revenue that shows high growth potential. The investors that are targeted through the Neuer Markt are risk-conscious private and institutional investors who are looking for investment opportunities with high returns and diversifiable risk. The Neuer Markt is expected to achieve a high trade volume and high liquidity of shares to limit risks and make future-oriented valuations of shares possible. So far about 325 companies are listed on the 'Neuer Markt'. The greatest number of Initial Public Offerings (IPOs) occurred in 1999 and 2000.
