Importance of the Non-financial Value Added of Government and Independent Venture Capitalists

Luukkonen TerttuDeschryvere MatthiasBertoni FabioNikulainen Tuomo

This paper compares the post-investment value-added activities performed by governmental venture capital (GVC) and independent venture capital (IVC) for their portfolio companies, and controls for the selection effect that the different investment profiles of these investors might have on the forms of value added. The study uses a unique data set based on a survey addressed to new VC-backed, technology-based firms from seven European countries. The study focused on the importance of the contribution by the first lead investor in a variety of activity areas, as assessed by the investee companies. The study also pays attention to potential adverse effects of the post-investment engagement of the investors on the firm.

Using a composite indicator of the extent of the value added, we find no statistically significant difference between the two types of investors. However, the type of value added differs across investor type and, in particular, IVC’s contribution proves to be significantly higher than that of GVCs in a number of areas, including the development of the business idea, professionalisation and exit orientation.

Information om publikationen

Serie
Discussion Papers no. 1257
Datum
2011
Nyckelord
venture capital
JEL
G24,G32,O16
Sidor
32
Pris
10 €
Tillgänglighet av tryckt version
Tillgänglig
Språk
Engelska