Working Paper
Public Policy for Start-up Entrepreneurship with Venture Capital and Bank Finance
Christian Keuschnigg, Søren Bo Nielsen
CESifo, Munich, 2003
CESifo Working Paper No. 850
CESifo, Munich, 2003
CESifo Working Paper No. 850
![](https://cesifo.org/DocImg/cesifo_wp850.jpg?c=1689237201)
This paper proposes and analyses a model of start-up investment. Innovative entrepreneurs are commercially inexperienced and can benefit from venture capital support. Only part of them succeed in matching with a venture capitalist while the rest must resort to standard bank finance. We consider a number of policies to promote entrepreneurship and venture capital backed innovation.
Keywords: venture capital bank finance, matching, moral hazard, public policy