- To catch up, the EC suggests that "governments should play a role in the supply of venture capital, establishing funds to invest in larger deals ... that private sector VCs avoid."
- Interestingly, much of the private VC funding in the EU comes from the US and China
- Hubris: Why do EU bureaucrats think they can pick winners more accurately than venture capitalists?
- Selection bias: Don't they realize that investments that VC's avoid are more likely to lose money?
- However, I do like the humility of one caveat in the EC report.
- "... our analysis recognises that simply increasing the supply of finance will not be effective unless there will be also an effort to increase entrepreneurial activity, both technology start-ups and growth businesses."