Private Equity and Venture Capital in Europe

1.1. Definition of Private Equity and Venture Capital

There is evidence that investing in the equity of companies started during the Roman Empire. However, the first suggestion of a whole structured organization that funded firms to improve and make their development easier was found during the fifteenth century, when British institutions launched projects dedicated to the increase and expansion of trade to and from their colonies.

Modern private equity and venture capital have been around since the 1940s when it started to be useful and essential for financial markets and a firm’s development. Financing firms by private equity and venture capital has become increasingly more important, both strategically and financially.

Because this type ...