Chapter

Initial Public Offerings and Venture Capital in Germany <sup>*</sup>

Stefanie Franzke, Stefanie Grohs and Christian Laux

in The German Financial System

Published in print March 2004 | ISBN: 9780199253166
Published online January 2005 | e-ISBN: 9780191601651 | DOI: http://dx.doi.org/10.1093/0199253161.003.0008
 Initial Public Offerings and Venture Capital in Germany  *

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Presents a survey of the role of initial public offerings (IPOs) and venture capital in Germany after the Second World War and discusses the evidence.

Between 1945 and 1983, IPOs and venture capital financing hardly played a role at all and only a minor role thereafter. The unprecedented boom on the Neuer Markt between 1997 and 2000 provides a striking contrast, but the levels of both activities remained rather low.

Understanding the reasons for the low number of IPOs and the fairly low volume of venture capital financing in Germany is important for understanding the German financial system. The potential explanations include differences in mentality, legal and institutional impediments, the availability of alternative sources of financing, and the presence of interest groups (politicians, unions or workers, managers or controlling-owners of established firms, and banks).

Keywords: initial public offering (IPO); institutional impediments; interest groups; mentality; Neuer Markt; venture capital

Chapter.  13309 words.  Illustrated.

Subjects: Financial Markets

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