Venture capital (VC) provides financial and managerial support for new innovative ideas at the initial stages of commercialization. It has helped to find the market for many radical innovations of 20th century, including personal computer, Internet and genetic engineering.
As a part of market economy venture business was not stable from the very beginning. The periods of rapid growth alternated with deep recessions. However each time VC revived anew as the Phoenix due to its very important function in modern knowledge-based economy.
This report presents an analysis of statistical data that prove the existence of several cycles in VC dynamics in the USA and the Great Britain. The main factors of these cycles formation are discussed. The author proposes two possible scenarios of development of VC market for the first 30 years of the new 21st century. A hypothesis is put forward about the relation between VC cycle's amplitude and a phase of Kondratieff's cycle.
The article describes the methodology for identifying and analyzing the economic cycles, which are based on historical spectral approach that combines the advantages of the historical and economic analysis and spectral method of the study of economic series.The proposed method is used to isolate and analyze of (both their own) regular oscillations of economic dynamics inherent in the developed economies, and the vibrations induced by technological and external economic shocks.
The analysis carried out on the basis of data on the dynamics of the post-war U.S. economy as the main recipient world cycles, and economy of Russia from 1861 to 2012 with using the latest research on the reconstruction of its economic dynamism. Finally, conclusions are drawn in relation to the economic policy of the state in the global cyclical development.