The paper deals with the analysis of causal effects of venture capital finance for new firm?s growth. The number of venture-backed firms is based on the identification of involvements of venture capitalists in firms recorded in the ZEW-Foundations Panels. All venture capital companies are considered, which are full members of the German, European or U.S.-American association of private equity investors or analysis of firm?s name indicate clearly venture capital activities. Within a statistical matching procedure an adequate control group for comparison with the group of venture-backed firms is drawn. The estimation of causal effects shows significant higher average annual employment growth rates of German venture-backed firms.
Engel, Dirk (2003), Höheres Beschäftigungswachstum durch Venture Capital?, Jahrbücher für Nationalökonomie und Statistik 223, 1-22.