Venture capital and new business creation

Research output: Contribution to journalArticleAcademicpeer-review

52 Citations (Scopus)


Using a comprehensive database of firms from 21 European countries over the period 1998¿2008, we find that venture capital investment has a positive effect on the rate of new business creation. This is especially true in countries with higher entry costs, higher protection of intellectual property rights, and lower taxes on capital gains. Our results suggest that, controlling for country and industry characteristics, venture capital is beneficial to bringing new ideas to the marketplace in the shape of new companies.
Original languageEnglish
Pages (from-to)4695-4710
Number of pages16
JournalJournal of Banking and Finance
Issue number12
Publication statusPublished - 2013


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