PRINT THIS PAGE The impact of venture capital on firm growth: An empirical investigation20/03/2002. Source: Centre for Economic Research (ZEW). Dirk Engel 
 Do venture capitalists add value? This study, which takes into account the fact that venture firms fund only high growth potential companies, suggests that they do. Dirk Engel of the Centre for European Economic Research, author of the study, found that surviving venture-backed companies had higher growth rates than non venture-backed companies.
The reasons for this high growth are that: venture capitalists have a much higher level of involvement in their investments and they are able to push companies to higher growth rates than other investors.
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Dirk Engel is working for the department of Industrial Economics and International Management
© The Centre for European Economic Research 2002
The Centre for European Economic Research (Zentrum für Europäische Wirtschaftsforschung, ZEW) is one of the leading institutes in the field of user-related empirical economic research in Europe, www.zew.de
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