Prior research has analyzed the role of venture capital (VC) for innovative entrepreneurs. Determinants of VCs’ decision have been subject to extensive research. From the entrepreneurs’ perspective, scholars have identified factors influencing the choice of capital, including growth potential or relationship with creditors and financiers. Since choice of capital has repercussions on firm operations and growth and innovation, it is important to understand:

1) Which motivations drive entrepreneurs to search for different capital types? Are certain capital sources rationed during financing process?

2) How does supply of capital affect nascent investment categories? Specifically, what is the contribution of VC to firm evolution in nascent investment categories like Cleantech?

3) What is the impact of policy and regulation within the financing framework? Can governmental action provide a sustainable investment environment for nascent investment categories?