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How to support cleantech start-ups? Lessons from European venture-capital deals

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  • Köppl-Turyna, Monika
  • Köppl, Stefan
  • Christopulos, Dimitris

Abstract

In this paper we analyze how different types of venture capital investments - private, public and indirect public - affect performance of "cleantech" start-ups in Europe. We hand collected a unique dataset on the institutional setting (public/indirect/private) of almost 15000 investors in Europe, which we combine with portfolio-company and deals data from Preqin to assess performance. Two results stand out: First, public venture capital does not underperform private venture capital in a broad crosscountry sample of European deals. This is a novel finding, as it doesn't confirm some previous findings in the literature that government-backed VCs underperform their private counterparts. We also find that there is no significant difference between direct and indirect government support of venture capital for cleantech investments. Second, GVCs perform well when they specialize in cleantech investments and are well connected within a network of other investors.

Suggested Citation

  • Köppl-Turyna, Monika & Köppl, Stefan & Christopulos, Dimitris, 2023. "How to support cleantech start-ups? Lessons from European venture-capital deals," Research Papers 25, EcoAustria – Institute for Economic Research.
    • Handle: RePEc:zbw:ecoarp:280983
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    More about this item

    Keywords

    venture capital; governmental venture capital; European Investment Fund; public policy; green technology; cleantech;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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