CHAPTER 10 • NETWORKING FOR VENTURE CAPITAL 217
vide a financial safety net. The legal system protects intellectual prop-
erty and the financial markets provide liquidity for investors and
entrepreneurs. Although other countries have tried to emulate the U.S.
model of venture capital, they lag far behind, often because they lack
one or more of these elements. In a cross-country comparison of early-
stage venture capital investments made in 1995, United States-based
venture investments of $3.4 billion were more than double the total
investments ($1.5 billion) of the next 20 highest ranking countries.
5
Venture Capital Cycles
The venture capital industry has consistently delivered superior long-
term returns, but has suffered periodic downturns.
6
Throughout ...