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{{Article|Has page=Brander Egan Hellmann (2010) - Government Sponsored versus Private Venture Capital|Has bibtex key=|Has article title=Government Sponsored versus Private Venture Capital|Has author=Brander Egan Hellmann|Has year=2010|In journal=|In volume=|In number=|Has pages=|Has publisher=}}{| class="wikitable floatright" cellpadding="2"|+ '''With the editors, at the NBER Pre-Conference'''|- border="0"! width="260" | [[MediaImage:Ed and Antoinette - HorizCut.jpg|250px]]! width="260" | [[Image:Ed and Josh - HorizCut.jpg|250px]]|- align="center"| Antoinette Schoar & Me || Me & Josh Lerner|} ==Reference== Brander , James A., Edward J. Egan , and Thomas F. Hellmann (2010) - , "Government Sponsored versus Private Venture Capital: Canadian Evidence", in "International Differences In Entrepreneurship", J. Lerner and A. Schoar, National Bureau of Economic Research, Cambridge, MA.  @article{brander2010government, title={Government Sponsored versus Private Venture Capital: Canadian Evidence}, author={Brander, James A. and Egan, Edward J. and Hellmann, Thomas F.}, journal={"International Differences In Entrepreneurship", J. Lerner and A. Schoar, National Bureau of Economic Research, Cambridge, MA.}, year={2010}, publisher={National Bureau of Economic Research} } ==File(s)== *[[Media:Brander_Egan_Hellmann_(2010)_-_Government_Sponsored_versus_Private_Venture_Capital.pdf|Download the PDF]] *[[:Image:Brander_Egan_Hellmann_(2010)_-_Government_Sponsored_versus_Private_Venture_Capital.pdf|Repository record]] ==Status== *This paper is published in an NBER book ("International Differences In Entrepreneurship", edited by J. Lerner and A. Schoar).*This paper was presented at: The NBER pre-conference on International Differences in Entrepreneurship, Boston, Massachusetts (May ‘07)*Google Scholar listed 50 cites as of Oct 2013. ==Abstract== This paper investigates the relative performance of enterprises backed by government-sponsored venture capitalists and private venture capitalists. While previous studies focus mainly on investor returns, this paper focuses on a broader set of public policy objectives, including value-creation, innovation, and competition. A number of novel data-collection methods, including web-crawlers, are used to assemble a near-comprehensive data set of Canadian venture-capital backed enterprises. The results indicate that enterprises financed by government-sponsored venture capitalists underperform on a variety of criteria, including value-creation, as measured by the likelihood and size of IPOs and M&As, and innovation, as measured by patents. It is important to understand whether such underperformance arises from a selection effect in which private venture capitalists have a higher quality threshold for investment than subsidized venture capitalists, or whether it arises from a treatment effect in which subsidized venture capitalists crowd out private investment and, in addition, provide less effective mentoring and other value-added skills. We find suggestive evidence that crowding out and less effective treatment are problems associated with government-backed venture capital. While the data does not allow for a definitive welfare analysis, the results cast some doubt on the desirability of certain government interventions in the venture capital market.