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Growth and venture capital investment potential for university spin-offs in Hungary

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  • Becsky-Nagy, Patrícia

Abstract

Venture backed spin-offs represent a low proportion of companies, even of innovative companies. The research question was, whether these companies have an important role in innovation and economic growth. I present the most important indicators of innovation in connection with entrepreneurship, the measures of start-ups, mainly the high-tech ones. I describe the position of venture capital industry nowadays, detailing the classical venture capital investments, targeting high-growth potential small firms, even university spin-offs. The study presents the results of a survey made as a counterpart of an academic research team, examining spin-offs, entrepreneurs and technology transfer in the most important Hungarian universities. I found that the most important obstacles of venture capital investments in high-tech spin-offs are the information gap between demand and supply side, the lack of entrepreneurs’ willingness to give up freedom in decision making, despite of low managerial skills. The low quality of financial environment is also an obstacle of the segment.

Suggested Citation

  • Becsky-Nagy, Patrícia, 2013. "Growth and venture capital investment potential for university spin-offs in Hungary," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 7(4-5), pages 1-8.
    • Handle: RePEc:ags:apstra:187505
    DOI: 10.22004/ag.econ.187505
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    1. Vohora, Ajay & Wright, Mike & Lockett, Andy, 2004. "Critical junctures in the development of university high-tech spinout companies," Research Policy, Elsevier, vol. 33(1), pages 147-175, January.
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    7. Pedro Ortín-Ángel & Ferran Vendrell-Herrero, 2009. "Why do university spin-offs attract more venture capitalists?," Venture Capital, Taylor & Francis Journals, vol. 12(4), pages 285-306, November.
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    Cited by:

    1. Fernando ALMEIDA, 2018. "Insights And Perspectives From A Literature Review On University Spin-Offs," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 10(2), pages 27-40, June.
    2. María Jesús Rodríguez-Gulías & David Rodeiro-Pazos & Sara Fernández-López & Christian Corsi & Antonio Prencipe, 2018. "The role of venture capitalist to enhance the growth of Spanish and Italian university spin-offs," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 1111-1130, December.
    3. Fazekas Balazs, 2014. "Government Interventions In The Venture Capital Market How Jeremie Affects The Hungarian Venture Capital Market?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 883-892, July.
    4. Becsky-Nagy Patrícia & Fazekas Balazs, 2014. "Returns Of Private Equity Comparative Analyses Of The Returns Of Venture Capital And Buyout Funds In Europe And In The Us," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 820-827, July.

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