The paper deals with the analysis of causal effects of venture capital finance for start-ups founded between 1991 and 1998 in Germany. The number of venture-backed firms is based on the identification of involvements of venture capitalists in firms. 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. The ZEW-Foundations Panels are the database for identification of venture-backed firms and for selection of suitable control firms. 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 (2001), Höheres Beschäftigungswachstum durch Venture Capital ?, ZEW Discussion Paper No. 01-34, Mannheim. Download


Engel, Dirk


Evaluation, Venture Capital, Start-Up