%0 Journal Article
%A Croce, Annalisa
%A Martí Pellón, José Pedro
%A Murtinu, Samuele
%T The impact of venture capital on the productivity growth of European entrepreneurial firms: 'Screening' or 'value added' effect?
%D 2012
%@ 0883-9026
%U https://hdl.handle.net/20.500.14352/91656
%X We aim to ascertain to what extent the better performance of European venture capital (VC)- backed firms in high-tech industries is due to either ‘screening’ or ‘value added’ provided by VC investors. We compare portfolio firms’ productivity growth before and after the first VC round, using a matched control group as benchmark. We show that productivity growth is not significantly different between VC and non-VC-backed firms before the first round of VC financing, whereas significant differences are found in the first years after the investment event. We also find that the value-adding services provided by VC investors 'imprint' the portfolio firm.
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