Research / BFI Working PaperSep 13, 2019

Synergizing Ventures

Ufuk Akcigit, Emin Dinlersoz, Jeremy Greenwood, Veronika Penciakova

Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have higher early growth rates and initial patent quality than non-VC-backed ones. VC-backing increases a startup’s likelihood of reaching the right tails of the firm size and innovation distributions. Furthermore, outcomes are better for startups matched with more experienced venture capitalists. An endogenous growth model, where venture capitalists provide both expertise and financing for business startups, is constructed to match these facts. The presence of venture capital, the degree of assortative matching between startups and financiers, and the taxation of VC-backed startups matter significantly for growth.

More Research From These Scholars

BFI Working Paper Oct 1, 2018

Connecting to Power: Political Connections, Innovation, and Firm Dynamics

Ufuk Akcigit, Salome Baslandze, Francesca Lotti
Topics:  Fiscal Studies, Employment & Wages, Tax & Budget
BFI Working Paper Nov 29, 2017

Innovation, Reallocation, and Growth

Daron Acemoglu, Harun Alp, Nicholas Bloom, William Kerr, Ufuk Akcigit
Topics:  Fiscal Studies
BFI Working Paper May 20, 2020

Taxation and Innovation: What Do We Know?

Ufuk Akcigit, Stefanie Stantcheva
Topics:  Uncategorized