The Impact of Venture Capital on Firm Growth: An Empirical Investigation
AbstractThe financial and non-financial involvement of venture capitalists is supposed to be positively correlated with firm performance. This paper deals with the evaluation of the impact of venture capitalists on employment growth of new founded firms. Differences between high-tech and low-tech industries as well as the impact of other investors are analyzed. The estimation results show that surviving venture-backed firms realize higher growth rates compared to surviving non-venture-backed firms. Moreover, venture capitalists are more able to push the firms to a faster and higher employment growth than other investors. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 02-02.
Date of creation: 2002
Date of revision:
Venture Capital; Start-ups; Employment Growth; Selection Bias; Evaluation;
Find related papers by JEL classification:
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
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