The determinants of Public Grants and Venture Capital financing: Evidence from Europe

Andrea Bellucci (), Gianluca Gucciardi and Daniel Nepelski
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Andrea Bellucci: University of Insubria, Department of Economics

No JRC132268, JRC Research Reports from Joint Research Centre

Abstract: This analysis compares the characteristics of firms supported by public and private sources in early-stage financing to investigate funding patterns for innovative companies. It examines whether the two sources of funding target similar firms in the period 2008-2017 using a portfolio approach on EU-based firms raising either Venture Capital financing, public grants under the Horizon 2020 ‘SME Instrument’ scheme, or both. The findings show that venture capitalists finance more innovative and younger firms, whereas public investors focus on smaller companies. This pattern is supported by robustness checks and expansions that address multiple dimensions of heterogeneity behaviours in the interaction of private and public funding.

Keywords: Venture Capital; Investment; Public Grants; Horizon 2020; SME Instrument; Entrepreneurial Finance (search for similar items in EconPapers)
JEL-codes: G20 L20 L53 O30 O38 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2023-02
New Economics Papers: this item is included in nep-cfn, nep-eec, nep-ent, nep-ino and nep-sbm
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ipt:iptwpa:jrc132268

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