Kopafbeelding publicaties CPB

The Performance of Publicly Managed Venture Capital Funds

CPB Discussion Paper 355, 21 June 2017

Governments, when designing support for venture capital financing, face a choice to either sponsor existing private VC funds or organize and manage their own public VC funds. There is emerging evidence that syndicated financing by private and publicly sponsored VC funds is correlated with better exit performance. At the same time little research has been done into the effectiveness of publicly managed VC funds.

We show that syndicated financing by private and publicly managed VC funds leads to a 5.1 p.p smaller chance of a successful exit compared to purely private financing. This finding is robust to reputation and culture/distance effects.

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