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The role of Governmental Venture Capital in the Venture Capital ecosystem : An organizational ecology perspective

Author

Listed:
  • Fabio Bertoni

    (EM - EMLyon Business School)

  • Massimo G. Colombo
  • Anita Quas

Abstract

We use the theory of organizational ecology to study how governmental venture capital (GVC) affects the investment behavior of private venture capital (PVC). Because of its objectives and dominant competencies, GVC is a unique organizational species that occupies a different niche than PVC. GVC is conceived to establish mutualistic relations with PVC. Accordingly, the greater the presence of GVC in a venture capital (VC) ecosystem, the more PVC investors should be attracted toward GVC's niche. We consider several relevant niche dimensions at the company (age and size), industry (biotechnology), and regional (competitiveness) levels. Our analysis of 1,239 PVC investments in Europe confirms most of our predictions.

Suggested Citation

  • Fabio Bertoni & Massimo G. Colombo & Anita Quas, 2019. "The role of Governmental Venture Capital in the Venture Capital ecosystem : An organizational ecology perspective," Post-Print hal-02312060, HAL.
    • Handle: RePEc:hal:journl:hal-02312060
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    4. Jihye Jeong & Juhee Kim & Hanei Son & Dae-il Nam, 2020. "The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
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    9. Anna Long & Matthew S. Wood & Daniel L. Bennett, 2023. "Entrepreneurial organizing activities and nascent venture performance," Small Business Economics, Springer, vol. 60(2), pages 433-461, February.
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