The impact of venture capital on the productivity growth of European entrepreneurial firms: ‘Screening’ or ‘value added’ effect?

  1. Murtinu, Samuele
  2. Croce, Annalisa
  3. Martí, José
Revista:
Journal of Business Venturing

ISSN: 0883-9026

Ano de publicación: 2013

Volume: 28

Número: 4

Páxinas: 489-510

Tipo: Artigo

DOI: 10.1016/J.JBUSVENT.2012.06.001 GOOGLE SCHOLAR lock_openAcceso aberto editor

Outras publicacións en: Journal of Business Venturing

Obxectivos de Desenvolvemento Sustentable

Resumo

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.

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