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Efficiency of venture capital firms: evidence from Spain

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  • Arturo Haro-de-Rosario
  • Mª del Caba-Pérez
  • Leonardo Cazorla-Papis

Abstract

In recent years the venture capital (VC) sector has played an increasingly important role in financial systems. In general, this type of specialised financial activity is conducted by two types of operators, VC firms and VC management companies, each with its specific characteristics. The main objective of this paper is to evaluate the operating efficiency of these financial intermediaries in Spain, using data envelopment analysis, and to carry out an exploratory study of the variables that affect their level of efficiency, using a truncated regression model, and taking into consideration the nature of the operator (an approach not previously undertaken). Our analysis reveals, first, differences in the levels of efficiency achieved by VC firms and VC management companies and, second, that the most efficient organisations are those with more diversified ownership structures and which have a portfolio of companies active in the most innovative sectors. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Arturo Haro-de-Rosario & Mª del Caba-Pérez & Leonardo Cazorla-Papis, 2014. "Efficiency of venture capital firms: evidence from Spain," Small Business Economics, Springer, vol. 43(1), pages 229-243, June.
    • Handle: RePEc:kap:sbusec:v:43:y:2014:i:1:p:229-243
    DOI: 10.1007/s11187-014-9541-0
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    Cited by:

    1. Yixi Ning & Wei Wang & Bo Yu, 2015. "The driving forces of venture capital investments," Small Business Economics, Springer, vol. 44(2), pages 315-344, February.

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    More about this item

    Keywords

    Efficiency; Venture capital; Data envelopment analysis; Spain; C14; G02; G24; L26;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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