I recently read, with interest, an article in which it was claimed that every $1 of venture capital investment was the equivalent to $3 of R&D expenditure. The article, from a highly credentialed commentator in this area, stated that there was research in this area but unfortunately did not state the title or source of the research.
To those heavily biased towards the merits of venture capital it sounds intuitive so naturally it catches the eye in a self-satisfying way. I too want to believe it to be the case so that it can be added to my kit-bag of arguments pro-venture capital.
However, for this asset class to be treated seriously those of us pushing the asset class must also treat it seriously, and that means ensuring the statement is justified and then used in context.
After some searching around the internet all that I have been able to fall upon is a document titled ‘Ideas in progress 2009: a whitepaper by Elizabeth Edwards”, downloaded from the site Intelligent Community and originating from Metro Innovation.