We aim to ascertain to what extent the better performance of European venture capital (VC)- backed firms in high-tech industries is due to either ‘screening’ or ‘value added’ provided by VC investors. We compare portfolio firms’ productivity growth before and after the first VC round, using a matched control group as benchmark. We show that productivity growth is not significantly different between VC and non-VC-backed firms before the first round of VC financing, whereas significant differences are found in the first years after the investment event. We also find that the value-adding services provided by VC investors 'imprint' the portfolio firm.
|Numero di pagine||22|
|Rivista||Journal of Business Venturing|
|Stato di pubblicazione||Pubblicato - 2013|
- Entrepreneurial firms
- Imprinting effect
- Value added
- Venture capital