Cross-country differences in the size of venture capital financing rounds: a machine learning approach

Marco Taboga ()
Additional contact information
Marco Taboga: Bank of Italy

No 1243, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We analyze the potential determinants of the size of venture capital financing rounds. We employ stacked generalization and boosted trees, two of the most powerful machine learning tools in terms of predictive power, to examine a large dataset on start-ups, venture capital funds and financing transactions. We find that the size of financing rounds is mainly associated with the characteristics of the firms being financed and with the features of the countries in which the firms are headquartered. Cross-country differences in the degree of development of the venture capital industry, while highly correlated with the size of funding rounds, are not significant once we control for other country-level characteristics. We discuss how our findings contribute to the debate about policy interventions aimed at stimulating start-up financing.

Keywords: venture capital; financial institutions; country characteristics; machine learning (search for similar items in EconPapers)
JEL-codes: C19 F0 G24 (search for similar items in EconPapers)
Date: 2019-11
New Economics Papers: this item is included in nep-big, nep-cfn, nep-cmp and nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/temi-dis ... 243/en_tema_1243.pdf (application/pdf)

Related works:
Journal Article: Cross-country differences in the size of venture capital financing rounds: a machine learning approach (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1243_19

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().