New technology-based firms in Europe: market penetration, public venture capital, and timing of investment

Luca Grilli, Samuele Murtinu

Research output: Contribution to journalArticlepeer-review

50 Citations (Scopus)

Abstract

We investigate the effect of public (PUVC) and private (PRVC) venture capital funds on the sales growth of 6513 European New Technology-Based Firms (NTBFs) during the period from 1992 to 2009. Our results show that PUVC-backed NTBFs underperform with respect to PRVC-backed ones and do not grow more than non–venture capital-backed companies. The impact of PUVC is still not statistically significant (even though it is positive) when PUVC funds target young NTBFs. The only notable exception suggesting a positive and statistically significant impact for PUVCs is when PUVC funds cofinance with PRVC funds, and both target young firms.
Original languageEnglish
Pages (from-to)1109-1148
Number of pages40
JournalIndustrial and Corporate Change
Volume24
DOIs
Publication statusPublished - 2015

Keywords

  • Entrepreneurial firms
  • Europe
  • Innovation policy
  • R&D
  • Syndication
  • entrepreneurial finance
  • entrepreneurship
  • firm growth
  • investment
  • new technology-based firms
  • public venture capital
  • venture capital

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