In this issue brief ("IB"), we explore Houston’s venture capital ("VC") investment as compared to the industry at a national level. The analysis reports venture capital investments from firms that focus primarily on venture capital investment and that predominately raise their funds from market-based sources of capital or are large, well-developed corporate venture capital funds.
The On the IB classifies growth venture capital we classify Growth VC and transactional venture capitalvc, using 1998 to 2016 as our time period and comparing Houston results to the national trends.
Growth VC is intended to support new firms (seed, early and late stage) through growth process. On the other hand, Transactional VC supports existing firms through a transaction. Transactional investments include bridge financing for firms that want to undergo an initial public offering or to be bought by an incumbent or a private equity investor, as well as those that want to buy other firms themselves.
If we do not classify VC investments in growth or transactional VC we lead to the interpretation that all the investment is going towards HGHT startups, therefore we may overestimate the HGHT entrepreneurship ecosystem.
==Progress Report==