Schmalenbach Business Review, Vol. 56, October 2004
19 Pages Posted: 11 Dec 2004
Using a data set of the firms listed on the Neuer Markt in Germany, we demonstrate that venture-backed firms differ from firms with other financial resources, especially debt. Thus, the results of this study support the hypothesis that small and innovative firms are more likely to be financed by venture capitalists rather than banks. We also provide evidence that the presence of venture capitalists enhance the growth rates of firms positively.
Keywords: Venture capital, new economy, entrepreneurship, corporate governance
JEL Classification: G32, L11, M13
Suggested Citation: Suggested Citation
Audretsch, David B. and Lehmann, Erik E., Financing High-Tech Growth: The Role of Banks and Venture Capitalists. Schmalenbach Business Review, Vol. 56, October 2004. Available at SSRN: https://ssrn.com/abstract=630982