The financial and non-financial involvement of venture capitalists is supposed to be positively correlated with firm performance. This paper deals with the evaluation of the impact of venture capitalists on employment growth of new founded firms. Differences between high-tech and low-tech industries as well as the impact of other investors are analyzed. The estimation results show that surviving venture-backed firms realize higher growth rates compared to surviving non-venture-backed firms. Moreover, venture capitalists are more able to push the firms to a faster and higher employment growth than other investors.


Engel, Dirk


Venture Capital, Start-ups, Employment Growth, Selection Bias, Evaluation