Title: TRENDS IN VENTURE CAPITAL INVESTMENT IN ISRAEL AND POLICY IMPLICATIONS FOR MOBILIZING CAPITAL FOR INNOVATIVE STARTUPS IN VIETNAM
Authors:
PhD. Ha Thi Phuong Thao and Ngo Ngoc Minh Anh
Abstract:
This study examines the structure, trends, and operational mechanisms of venture capital (VC) flows in Israel from 2015 to 2024, providing a comparative perspective with Vietnam to propose a comprehensive policy framework for mobilizing investment capital for innovative start-ups. The findings indicate that Israel’s success derives from the establishment of a coherent chain of causal mechanisms, including: (i) an enabling institutional and legal framework, (ii) public–private risk-sharing and reinvestment mechanisms, (iii) effective knowledge diffusion and data transparency, and (iv) an endogenous reinvestment loop through the Corporate Venture Capital (CVC) system. In contrast, Vietnam’s start-up ecosystem faces significant bottlenecks related to its legal framework, information transparency, R&D capacity, and the ability to form domestic capital cycles. A comparative analysis using the Mechanism-Based Analysis (MBA) approach reveals that Vietnam remains at the stage of “policy activation and orientation,” lacking sufficient intermediary mechanisms for venture capital flows to function effectively. Accordingly, the study proposes three policy pillars to enhance capital mobilization for Vietnamese start-ups: (1) improving institutional frameworks and establishing a unified coordination mechanism; (2) connecting the capital ecosystem with knowledge, data, and investor networks; and (3) strengthening R&D capacity, adopting digital technologies, and promoting deep innovation.
Keywords: Venture capital, Israel, trends, capital mobilization policy, startups, Vietnam.
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