On The Legal Mechanics Of Venture Capital Incentives: Lessons From The American Experience

It is hardly surprising that other countries have sought to emulate American success in developing an effective venture capital market. America has developed its legal mechanism of venture capital incentives which are considered as holy grails of other countries. Capital market related regulations are the external incentives which help entry and exit of venture capital investment. Various types of legal structures such as partnerships and corporations are the internal incentives of the venture capital business. Each business structure has its own perceived advantages and disadvantages. The ever-changing legislation of business structures in America suggests that the law evolves in correspondence to the updated economic demands. Government support also plays an essential role in venture capital development. American has launched both federal and local government support programs regarding taxation, government loans and government...