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

Luca Grilli; Samuele Murtinu

doi:10.1093/icc/dtu025

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

Luca Grilli^*, Samuele Murtinu

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

80 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 language	English
Pages (from-to)	1109-1148
Journal	Industrial and Corporate Change
Volume	24
Issue number	5
DOIs	https://doi.org/10.1093/icc/dtu025
Publication status	Published - 2015
Externally published	Yes

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

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.",

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

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