We investigate the implications of venture capital (vc) investor type (government or private) on the operating efficiency of a sample of 515 belgian portfolio firms up to 3 years after the investment. We find that the government vc-backed firms display significant reductions in productivity. No significant differences in efficiency are found in firms backed by private vc compared with their non-vc-backed peers. Finally, significant reductions in efficiency exist in targets of government vc compared to their non-vc-backed peers.
Alperovych, Y., Hübner, G. M. B. J., & Lobet, F. (2015). How does governmental versus private venture capital backing affect a firm’s efficiency? Evidence from Belgium. Journal of Business Venturing, 30(4), 508-525. https://doi.org/10.1016/j.jbusvent.2014.11.001