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This paper investigates the implications of the venture capital (VC) investor type (government or private) on the operating efficiency of a sample of 515 Belgian portfolio firms up to three years after the investment. We show that within a pool of VC-backed firms, the targets of the government VC display significant reductions in productivity. No significant differences in efficiency are found in firms backed by private VC compared to their non-VC-backed peers. Finally, significant reductions of efficiency are still present in targets of government VC compared to their non-VC-backed peers.