3.8 Parallel markets

An important prerequisite for the development of the venture capital market and other forms of early stage finance is the availability of an ‘exit route’.  The lack of a vibrant market on which to float their companies will discourage entrepreneurs and venture capitalists and potentially put a brake on the continued growth of these businesses

How does the UK perform?

The UK has the highest number of companies incorporated in parallel markets of its G7 European rivals (Chart 3.8.1).  

In terms of the capitalisation of parallel markets as a percentage of GDP, Germany’s Neuer Markt had the highest value in 2001, as it did in 2000 (Chart 3.8.2).  The capitalisation of parallel markets as a percentage of GDP has declined in all countries between 2000 and 2001.

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