Venture Capital and Equity Financing from Public Funds
Equity fund investments invest private and public sources on a repayable basis with a revolving character, which allows economic development and at the same time means a much greater efficiency in the allocation of public capital and the long-term sustainability of public investment
than grants. The paper analyses the Hungarian practice using equity funds, especially using public sources both looking at the empirical evidences and seeking for answers to the question, what are the pros and cons of these tools, whether they are effective, useful or not. This paper has two main aims: first, to review the legislation and the Hungarian approach on the utilisation of equity funds; second, to analyse experiences, establishment and implementation, practical problems and solutions linked to equity funds.