Is a Company’s Access to Private Equity and Venture Capital Affected by Location or Management Diversity? Some Empirical Evidence from Austria

Abstract

Governments around the world are providing various forms of subsidies to promote private investments into young, innovative firms. Under these circumstances it becomes ever more important to identify possible imbalances of risk capital (i.e. private equity and/or venture capital) markets. The present study provides econometric analyses (propensity score matching and probit regressions) based on firm data with the estimations displaying some distortions. In particular, a location outside Vienna as well as its shares of female and foreign managers display negative impacts on a company’s likelihood to be risk financed.