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Sources of Funds and Specialization Patterns of European Venture Capital Investments

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  • Schertler, Andrea

Abstract

This paper analyses the link between venture capitalists' sources of funds, such as banks and pension funds, and the specialization pattern of venture capital investments in particular industries and particular stages of enterprises' development. Based on a panel data set of Western European countries, the results of the analysis show that sources of funds and investment specialization patterns are linked. For example, the specialization in the early stage of enterprises' development depends positively on the importance of pension funds and negatively on the importance of banks as sources of funds. These results reject models that assume independence of sources of funds and investment patterns.

Suggested Citation

  • Schertler, Andrea, 2004. "Sources of Funds and Specialization Patterns of European Venture Capital Investments," Kiel Working Papers 1200, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1200
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    File URL: https://www.econstor.eu/bitstream/10419/17744/1/kap1200.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    sources of funds; venture capital; Europe; panel data;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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