Relationship Between Venture Capital Investments and Economic Growth in Kenya

Abstract

Venture Capital is a source of non bank Financing which is quite common in developed Financial Markets that Fund start ups Firms, offer Management Experience and technical support to start ups businesses (Sahlman,1991). According to East African Venture Capital Association there were more than 200 Start ups businesses in Kenya funded by Venture Capital from the year 2006 to 2016. According to Capital Market Authority, Venture Capital is a fast growing source of Capital in Kenya from 1.57 billion Kshs in the year 2000 to 95 billion Kshs in the year 2016. The research employed a descriptive research design to study the relationship between venture capital and economic growth in Kenya. The study has shown a positive and significant relationship between economic growth and venture capital financing.