Title: Chilean venture capital funds, government incentives and investment in technology ventures

Authors: Tomas Gabriel Bas, Ignacio Bustamante

Addresses: School of Business, Universidad Adolfo Ibanez, Av. Diagonal las torres 2700, Tour 'c', Penalolen, Santiago, Chile. ' Pontificia Universidad Catolica de Chile, Direccion de Investigaciones Cientificas y Tecnologicas, DICTUC, Vicuna Mackenna 4860, Santiago, Chile

Abstract: The purpose of the present study is to increase knowledge regarding Chilean venture capital funding, emphasising on technology investment. Qualitative research methodology, exploratory-descriptive was used. The results show characteristics of Chilean venture capital funds, highlighting that the number of funds and capital raised was low, which could be the explanation for the few investments carried out by venture capital funds. Chile has a venture capital market averse to risk, the results of the present study indicate that the investments are not achieving CORFO|s objectives for innovation and technology investment. The possibility of incorporating more attractive incentives for investment in the technology sectors, such as tax reduction to venture capital funds, must be evaluated.

Keywords: venture capital; government incentives; technology investment; Chile; risk averse; innovation; tax reduction.

DOI: 10.1504/IJSCM.2011.040629

International Journal of Strategic Change Management, 2011 Vol.3 No.1/2, pp.1 - 15

Published online: 28 Feb 2015 *

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