The implications of participation by financial institutions in venture capital in Malta

Abstract

Nowadays, venture capital is considered to be the most modern and important instrument we have to promote economic development, job creation and technological progress. A venture capital firm seeks to make a profit by investing in the early stages of a business and later divesting of its interest when the business becomes established. This dissertation aims at investigation the implications entailed by Maltese financial institutions in participating in a local venture capital industry. Part I introduces the subject by defining venture capital and outlines the extent to which this type of funding is currently available in Malta. It also highlights the present role of the Maltese financial institutions. Part II considers the implications proper of participation by local financial institutions in venture capital. It discusses all aspects involved in the setting up and operation of a venture capital firm in Malta.