The European venture capital landscape: an EIF perspective. Volume II: Growth patterns of EIF-backed startups

Description

Start-up growth is often treated as a stylised fact, despite an extensive research body composed of divergent theories and empirical findings. Against this background, this work contributes to the literature by analysing a hand-collected dataset of 2 951 EIF-backed venture capital (VC) start-ups. Section two briefly reviews the relevant literature and section three discusses data and methods. Section four uses descriptive statistics to explore average and median growth trends of start-ups, following an EIF-backed VC investment. Section five employs a latent class cluster analysis to establish a taxonomy of start-up growth profiles, characterised by speed and bias towards sales or patenting. The observed growth patterns, described in section six, are typically idiosyncratic and persistent. However, a series of factors affecting growth mode can be evidenced. In particular, this paper finds that the geographic distribution of out-performing start-ups hints at national and regional factors acting as enablers for different typologies of successful growth. Implications for research and practice are discussed.

Country
All EU Member States
Source
European Investment Fund
Responsibility
External