This article reviews the interconnection between innovation, macroeconomic environment, entrepreneurial activity and venture capital investments. Due to the interconnection of macroeconomic environment, entrepreneurial activity, innovation and venture capital with each other, by implementing venture capital investments as the base point, this article investigates the nexus in 3 key sections. The recent findings from researchers suggest that micro level determinants have the enormous impact on the venture capital investment activity such as ethics, protection of investors and transparency. The remaining policy implications will be denoted at the conclusion section of this article.

JEL Classification: G24; O30.

Keywords: Venture Capital; Innovation; Entrepreneurial Activity; Macroeconomic Environment; Literature Review.