Management Summary Research Study “Venture Capital and High-Tech Start-Ups in Europe: A Systematic Review of the Empirical Evidence”

The study assesses the impact of venture capital (VC) on the growth and innovation of high-tech start-ups in Europe, motivated by recent VC policies and the heterogeneous effects of VC across different regions. The review of 34 firm-level studies from 2000 to 2023 shows a predominance of positive effects on firm expansion and investment. However, evidence on innovation and productivity is more limited and mixed. Private, independent VC shows the largest positive effects, while government VC has positive but lower effects and often complements private VC.

Methodology involves a systematic literature review of studies from 17 European countries, focusing on value-added effects of VC and controlling for selection bias. The findings suggest that VC helps reduce credit constraints and other growth barriers for funded firms. Practical implications indicate that policies increasing VC supply can significantly help high-tech start-ups expand. Supporting innovation and productivity requires careful consideration of VC types and their complementarities. Further research is needed on VC effects in small and Eastern European countries and on specific VC-related policies.

Target groups of stakeholders: Policy makers, venture capitalists, high-tech entrepreneurs, and academic researchers.

Citation (APA): Pantea, S., & Tkacik, M. (2024). Venture Capital and High-Tech Start-Ups in Europe: A Systematic Review of the Empirical Evidence. Venture Capital. https://doi.org/10.1080/13691066.2024.2315069

Source: https://www.tandfonline.com/doi/full/10.1080/13691066.2024.2315069