Developing venture capital system beyond economic capital concept

Abstract

PurposeThe purpose of this paper is to explore an expanding venture capital (VC) system beyond economic capital concept, based on “triple bottom line” of enterprises.Design/methodology/approachA complete VC system is given, first of all, and then the gap in the existing VC system is explored. To develop a VC system, the gaps must be filled based on a university‐government‐industry triple helix. Since corporate value view has been changed from one‐dimensional to three‐dimensional, social as well as cultural, and humanistic elements must be considered in a broader VC system. The approaches include developing social capital, cultural capital and promoting risk awareness.FindingsThe VC system in a country/region consists of economic and non‐economic capital investment. Both play important roles in parallel. Social and cultural capital investment will work as “soft capital” to remit the gaps from an insufficient economic capital system.Originality/valueThe policy implication of this paper is that policy makers may give more thought to developing non‐economic capital to fill the VC gaps in either an existing or an expanding VC system.