Venture capital, initial public offerings and political economics: the case of Germany

摘要

The availability of venture capital is closely linked to stock markets for young growth companies as an initial public offering is usually the most attractive exit channel. For decades the German economy was bank centred and stakeholder oriented. Inherent to the system, the capital market did not play a central role, and a market for venture capital basically did not exist. Since the 1990s, the German economy has undergone some fundamental changes. The old 'Germany Inc.' is in the process of disintegration. With an increasing capital market orientation, the venture capital and IPO market almost gained ground automatically. The Neuer Markt, although very successful for several years, finally failed. We argue that the reasons go beyond the global downturn of the stock markets and are to be found in the system of political economics. In Germany, the political economic system is far from being a full-fledged capital market, outsider control system.