Against all odds: the late but rapid development of the German venture capital industry

In a period of just a few years, the German venture capital industry has transformed itself from a small, stagnant and obscure niche industry into one of the fastest growing and most visible segments of the economy. Despite the historical underdevelopment of Germany's market for private equity investments, since 1997 the country has experienced a rapid rise in entrepreneurial opportunities and activities as well as extraordinary growth of investment funds. What allowed this once-sleepy industry to suddenly blossom? Are the changes merely part of an economic bubble, or is German VC here to stay?