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The inventive process is the§most important driver of economic growth. Venture capital (VC) funds have contributed§a small, but critical, part to the inventive process. VC funds boost the§inventive process by selecting a small number of radical ideas out a large flow§of ideas and invest in their testing, development and commercialization. They§bring together capital from general savings, management§capabilities and business experience. When successful, VC-backed companies can contribute§substantially to the welfare of society.§§In this book, VC funds are discussed§in the context of macroeconomics, industrial organization, financial intermediation§and financial economics. The authors adopt a comprehensive overview to provide clearer§insight into the role of VC funds in the capital market and the way they§operate.§§