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Financing With Venture Capital: Advances in Knowledge Over the Last Ten Years and Research Avenues

3.3 Comparison of businesses that were financed by venture capital and those that were not (performance, sales, job creation, rate of innovation, etc.)

To better understand the venture capital market and appreciate its role in the economic development of a country, it is necessary to analyse the businesses that have benefited from this type of financing and to compare them to those that have chosen other sources. The difficulty in accessing quality information certainly explains in large part the limited number of studies that were found, which dealt with the following subjects:

• the characteristics of businesses financed by VC: value of tangible assets, expected growth, market potential, etc.; companies.
• growth and performance: sales and jobs, higher performance, initial under-valuation, 'professionalization', technological businesses, etc.

The superior performance of businesses that have had VC financing must not be linked directly to intervention by VCC. The strictness of selection criteria used by VCC must also be analysed. It would be important to have a greater number of studies that measure causal relationships between the intervention of VCC and the performance of financed businesses, which would lead to better knowledge of the functioning and efficiency of this segment of the financial market. A study of the behaviour of businesses that have succeeded but that were refused by VCC would make it possible to assess or critique the criteria used by VCC.

The impact after an initial public offering is the subject that is dealt with most frequently. This is surely related to the fact that information is more easily available from public than from private companies.

The main difficulty in doing studies in this field is the access to pertinent information, which we will raise in our conclusions.

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