The Role of Governmental Venture Capital in the Venture Capital Ecosystem: An Organizational Ecology Perspective

Fabio Bertoni, Massimo G. Colombo and Anita Quas

Entrepreneurship Theory and Practice, 2019, vol. 43, issue 3, 611-628

Abstract: We use the theory of organizational ecology to study how governmental venture capital (GVC) affects the investment behavior of private venture capital (PVC). Because of its objectives and dominant competencies, GVC is a unique organizational species that occupies a different niche than PVC. GVC is conceived to establish mutualistic relations with PVC. Accordingly, the greater the presence of GVC in a venture capital (VC) ecosystem, the more PVC investors should be attracted toward GVC’s niche. We consider several relevant niche dimensions at the company (age and size), industry (biotechnology), and regional (competitiveness) levels. Our analysis of 1,239 PVC investments in Europe confirms most of our predictions.

Keywords: investment behavior; venture capital; investment; organizational ecology; government policy/regulation (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (16)

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Working Paper: The role of Governmental Venture Capital in the Venture Capital ecosystem: An organizational ecology perspective (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:43:y:2019:i:3:p:611-628

DOI: 10.1177/1042258717735303

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