Financing young high tech companies in Japan: The role of Japanese venture capital managers

Since the end of the 1990s the Japanese venture capital market has undergone some enormous institutional changes. Many new independent venture capital firms with a specialised focus and new investment strategies have entered the market and through deregulation new risk management approaches have now become available in Japan.

Regarding these changes I want to answer following questions:

• How does this new investment environment influence the investment decision of Japanese venture capital managers?
  
• What are the main reasons for the difficulties of financing young high tech companies in Japan and will there be an improvement in the near future?
  
• Is it still fair to criticise Japanese venture capital firms for inefficient investment behaviour as it is done by Japanese as well as by Western authors?

To answer these questions I analyse the risk perception of Japanese venture capital managers. Collecting quantitative data by interviewing Japanese venture capital professionals I focus on the relationship between individual professional experiences, risk perception, risk management approaches and investment behaviour.

My presentation will consist of three parts: First I will give a short introduction about venture capital in Japan and how it is reviewed. Second I will present the theoretical background and my research design, before I will finally discuss my latest results in the third part of my presentation.

CV: Nik Raupp is a PhD candidate at the University of Duisburg-Essen and currently a doctoral research fellow at the DIJ. He studied Economics and Japanese Studies at University of Bonn and at Keio University.