Massimiliano Guerini is an Assistant Professor at the Politecnico di Milano School of Management. He holds a PhD in Management, Economics and Industrial Engineering from the Politecnico di Milano and he was Visiting Fellow at the Harvard Business School. His research interests are in the area of entrepreneurship, university-industry linkages, and entrepreneurial finance. He has published on these topics in Journal of Business Venturing, California Management Review, Journal of Corporate Finance, Research Policy, and Small Business Economics, among others.
Governmental venture capital in Europe: Screening and certification
Massimiliano Guerini *
Anita Quas #
* Politecnico di Milano, Department of Management, Economics and Industrial Engineering, Via Lambruschini 4b, 20156 Milano, Italy
# EMLYON Business School, Department of Economics, Finance and Control, 23 Avenue Guy de Collongue, 69134 Ecully, France
This paper investigates the screening and certification abilities of government-managed venture capital (GVC) firms in Europe. Using a sample of European high-tech entrepreneurial companies, we show that GVC funding increases the likelihood that companies will receive private venture capital (PVC). Moreover, GVC-funded companies that have received a first round of PVC are at least as likely as other PVC-backed companies to receive a second round of PVC or to be listed or acquired. After ruling out alternative explanations, we interpret these results as positive evidence of GVC firms’ abilities in selecting promising companies and certifying them to PVC investors.