View source for Brander Egan Hellmann (2010) - Government Sponsored versus Private Venture Capital

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|Has article title=Government Sponsored versus Private Venture Capital
|Has author=Brander Egan Hellmann
|Has year=2010
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{| class="wikitable floatright" cellpadding="2"
|+ '''With the editors, at the NBER Pre-Conference'''
|- border="0"
! width="260" | [[Image:Ed and Antoinette - HorizCut.jpg|250px]]
! width="260" | [[Image:Ed and Josh - HorizCut.jpg|250px]]
|- align="center"
| Antoinette Schoar & Me || Me & Josh Lerner
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==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.