Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/207251
Authors: 
Akcigit, Ufuk
Dinlersoz, Emin M.
Greenwood, Jeremy
Penciakova, Veronika
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7860
Abstract: 
Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have higher early growth rates and initial patent quality than non-VC-backed ones. VC-backing increases a startup’s likelihood of reaching the right tails of the firm size and innovation distributions. Furthermore, outcomes are better for startups matched with more experienced venture capitalists. An endogenous growth model, where venture capitalists provide both expertise and financing for business startups, is constructed to match these facts. The presence of venture capital, the degree of assortative matching between startups and financiers, and the taxation of VC-backed startups matter significantly for growth.
Subjects: 
venture capital
assortative matching
endogenous growth
IPO
management
mergers and acquisitions
research and development
startups
synergies
taxation
patents
JEL: 
G24
N20
O30
Document Type: 
Working Paper

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