The European venture capital landscape: an EIF perspective. Volume II: Growth patterns of EIF-backed startups

Simone Signore ()

No 2016/38, EIF Working Paper Series from European Investment Fund (EIF)

Abstract: Start-up growth is often treated as a stylised fact, despite an extensive research body composed of divergent theories and empirical findings. Against this background, this work contributes to the literature by analysing a hand-collected dataset of 2,951 EIF-backed VC start-ups. Section 2 briefly reviews the relevant literature and 3 discusses data and methods. Section 4 uses descriptive statistics to explore average and median growth trends of start-ups, following an EIF-backed VC investment. Section 5 employs a latent class cluster analysis to establish a taxonomy of start-up growth profiles, characterised by speed and bias towards sales or patenting. The observed growth patterns, described in section 6, are typically idiosyncratic and persistent. However, a series of factors affecting growth mode can be evidenced. In particular, this paper finds that the geographic distribution of outperforming start-ups hints at national and regional factors acting as enablers for different typologies of successful growth. Implications for research and practice are discussed.

Keywords: EIF; start-up growth; venture capital; growth patterns (search for similar items in EconPapers)
JEL-codes: G24 L25 M13 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:eifwps:201638

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