EIM Business & Policy Research
This paper analyses the Dutch informal capital market by using perspectives from finance theory and agency theory. Matched data are collected from informal investors and innovative entrepreneurs. The first chapter of this shortened version outlines the potential imperfections of the Dutch informal capital market. The second chapter discusses the empirical results. The third chapter summarizes the results and draws conclusions. Some studies in entrepreneurship have shown that entrepreneurial ventures contribute to economic growth by creating new jobs. However, because of the risks of these ventures, the institutional capital market could confine the economic development of these entrepreneurial ventures.