Estudios de economía
versión On-line ISSN 0718-5286
AMOROS, JOSÉ ERNESTO; ATIENZA, MIGUEL y ROMANI, GLANNI. FORMAL AND INFORMAL EQUITY FUNDING IN CHILE. Estudios de Economía [online]. 2008, vol.35, n.2, pp. 179-194. ISSN 0718-5286. http://dx.doi.org/10.4067/S0718-52862008000200004.
This paper explores the state of formal and informal equity sources currently available for financing entrepreneurial activity in Chile. By integrating theoretical perspectives regarding formal and informal equity funding and information gatheredfrom the Global Entrepreneurship Monitor (GEM) surveys, the paper argües that despite the favorable environment existing in Chile for equity investment, these markets are still incipient and strongly dependent on public policies. In this respect it isproposed thatpublic intervention to address equity gaps in Chile should also adopt a demand-side perspective, aimed at improving the quality of investment opportunities, and should incorpórate a geographical dimension, considering the particularities andfinancial needs of non-metropolitan regions.
Palabras clave : Entrepreneurship; Venture capital; Business angels; Informal investment; Equity gaps.