The investment strategies of publicly sponsored venture capital funds

Buzzacchi, Luigi; Scellato, Giuseppe; Ughetto, Elisa

doi:10.1016/j.jbankfin.2012.10.018

Cited by 52 publications

(22 citation statements)

References 27 publications

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“…For GVC we cannot detect an increasing effect on sales from each subsequent VC spell. To some extent, these results are in line with Buzzachi et al (2013), who noticed that European VC firms with a higher level of public funding tend to support start-ups for a longer time after the initial investment, even when the return on the investment is mediocre. Full set of controls yes yes yes Notes: * , ** and *** indicate significance at the 10, 5, and 1 percent levels, respectively.…”

Section: By Vc Spells Investment Size and Lagssupporting

confidence: 88%

Direct and indirect effects of private- and government-sponsored venture capital

2019

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This paper studies the real effects of venture capital on targeted firms. Specifically, using a unique dataset with comprehensive information on private-and governmental venture capital investments, we examine the effects of such investments on firms' sales, employment and investments in physical capital. The results suggest that both private and public venture capital boost firm sales two to three years after the investment. The sales increase can, in turn, partially be traced to an investment effect, and partially to increased efficiency, whereas no employment effects are found. Finally, our findings suggest that government investors are more prone than private VC firms to make follow-up investments in stagnating non-growing firms.

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Section: By Vc Spells Investment Size and Lagssupporting

confidence: 88%

Direct and indirect effects of private- and government-sponsored venture capital

2019

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“…Recent evidence from Buzzacchi et al (2013) suggests that higher public stakes in equity instruments can result in increased private venture capital risk aversion and longer investment periods. In addition, evidence suggests that VC-backed firms perform better if the amount invested by the public sector is smaller, and under control of a private fund manager, than if the amounts are larger (Brander et al, 2010).…”

Section: The Balance Between Public and Private Sector Investmentmentioning

confidence: 99%

Policy Lessons from Financing Innovative Firms

Wilson

2015

OECD Science, Technology and Industry Policy Papers

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There has been increasing concern from policy makers around the world about the lack of access to finance for young innovative firms. As a result, governments in many OECD countries have sought to address the financing gap and perceived market failures by supporting the seed and early stage market. This paper seeks to summarise the lessons learned in seed and early stage finance based on OECD work over the past several years focused on policies related to financing high growth firms, including angel investment and venture capital. That research was supplemented with a questionnaire on seed and early stage financing policies in 2012 and a series of policy workshops held between 2012 and 2014. The workshops provided deeper insights into experiences and lessons learned from OECD member countries. The OECD has been working on seed and early stage finance within the Committee for Industry, Innovation and Entrepreneurship (CIIE) in the Directorate for Science, Technology and Industry as well as across other Directorates. This work has highlighted the growth in seed and early stage finance policies as well as the importance of high-growth firms for job creation and the role that financial development and other policies play in firm dynamics and the growth of such firms. The OECD Secretariat would like to thank Norway, Switzerland, the Netherlands and Sweden for hosting financing policy workshop over the past several years as well as all of the representatives and experts who provided input throughout the research process. The OECD Secretariat would also like to thank Norway for the voluntary contribution in support of this work. Note to Delegations: This document is also available on OLIS under reference code DSTI/IND(2014)5/FINAL The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD member countries.

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“…The data were collected as of December 31, 2007. The dataset has been previously exploited in a companion paper (Buzzacchi et al, 2013). EIF data were complemented by information from Thomson One dataset (formerly known as VentureXpert), a commercial dataset provided by Thomson Financial.…”

Section: Data Sources and Sample Characteristicsmentioning

confidence: 99%