The paper deals with the empirical investigation of the question, which type of venture capital companies (VCC) determine positively the growth and survival of young venture-backed firms. The definition of venture-backed firms is based on a computer-assisted search for names of venture capital companies as shareholders in firms. The ZEW-Foundations Panels are the database for the analysis. The empirical results suggest for example, that venture-backed firms achieve significant higher employment growth rates when a VCC with local activities is engaged. Changes in the board of directors is a less powerful factor to explain high employment growth.


Engel, Dirk


Venture Capital, New Firms, Employment Growth, Survival