Main Article Content

Abstract

This article investigates how venture capital is related to the growth of VC-backed firms. After controlling the effect of a firm’s age, we found that operational, financial, marketing and other services strongly affect the growth of VC backed firms, while the managerial services are weakly associated with the growth. This indicates that VCs provide every possible support but do not interfere in the managerial activities of their entrepreneurial firms. Further, we have tested how this growth is affected when value-added services are received from the experienced and high-quality venture capitalists.  The results show that high qualities of operational, financial, and marketing services affect the growth while managerial and other services are irrelevant to the growth. The results would help VCs, entrepreneurs, and the policymakers for designing a growth model for their business firms.

Article Details