The Economic Impact of Venture Capital: Evidence from Public Companies

22 Pages Posted: 29 Oct 2015 Last revised: 24 Dec 2015

Will Gornall

University of British Columbia (UBC) - Division of Finance

Ilya A. Strebulaev

Stanford University - Graduate School of Business; National Bureau of Economic Research

Date Written: November 1, 2015

Abstract

Over the past 30 years, venture capital has become a dominant force in the financing of innovative American companies. From Google to Intel to FedEx, companies supported by venture capital have profoundly changed the U.S. economy. Despite the young age of the venture capital industry, public companies with venture capital backing employ four million people and account for one-fifth of the market capitalization and 44% of the research and development spending of U.S. public companies. From research and development to employment to simple revenue, the companies funded by venture capital are a major part of the U.S. economy.

JEL Classification: G24

Suggested Citation

Gornall, Will and Strebulaev, Ilya A., The Economic Impact of Venture Capital: Evidence from Public Companies (November 1, 2015). Stanford University Graduate School of Business Research Paper No. 15-55. Available at SSRN: https://ssrn.com/abstract=2681841 or http://dx.doi.org/10.2139/ssrn.2681841

Will Gornall

University of British Columbia (UBC) - Division of Finance ( email )

2053 Main Mall
Vancouver, British Columbia BC V6T 1Z2
Canada
(604) 827-4372 (Phone)

HOME PAGE: http://sites.google.com/site/wrgornall/

Ilya A. Strebulaev (Contact Author)

Stanford University - Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

HOME PAGE: http://faculty-gsb.stanford.edu/strebulaev/

National Bureau of Economic Research ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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