How to guide venture capital to startups? Evidence from China's Science and Technology Innovation Board

IF 2.9 3区 经济学 Q1 ECONOMICS
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引用次数: 0

Abstract

Venture capital (VC) plays a vital role in supporting startups. However, in many developing economies, venture capitalists' tendency to prioritize later-stage over early-stage investments constrains their capacity to fund startups. China's recent Science and Technology Innovation Board (STAR) market establishment, with its focus on innovation ability over profitability, enables high-tech startups to list at early stages. This improves exit prospects for VCs investing to the early-stage startups. Employing a regression discontinuity design, our empirical analysis demonstrates that the STAR market establishment attracts additional capital to the VC market and guides VCs toward earlier-stage startups. Mechanism analysis indicates these effects stem from improved VC exit returns rather than heightened exit activities. Our findings underscore the efficacy of specialized stock markets for startups in channeling venture capital towards small and early-stage enterprises. These findings provide valuable insights for developing countries seeking to leverage VC for startup growth.
如何引导风险资本进入初创企业?来自中国科技创新局的证据
风险资本(VC)在支持初创企业方面发挥着至关重要的作用。然而,在许多发展中经济体,风险资本家倾向于优先考虑后期投资而非早期投资,这限制了他们为初创企业提供资金的能力。中国最近设立的科技创新板(STAR)市场注重创新能力而非盈利能力,使高科技初创企业能够在早期阶段上市。这改善了投资早期初创企业的风险投资机构的退出前景。通过采用回归不连续设计,我们的实证分析表明,STAR 市场的建立为风险投资市场吸引了更多资本,并引导风险投资转向早期初创企业。机制分析表明,这些效应源于风险投资退出回报的提高,而非退出活动的增加。我们的研究结果强调了初创企业专业股票市场在引导风险资本流向小型和早期企业方面的功效。这些发现为发展中国家寻求利用风险投资促进初创企业发展提供了宝贵的见解。
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来源期刊
CiteScore
4.70
自引率
9.40%
发文量
90
期刊介绍: The Journal of Asian Economics provides a forum for publication of increasingly growing research in Asian economic studies and a unique forum for continental Asian economic studies with focus on (i) special studies in adaptive innovation paradigms in Asian economic regimes, (ii) studies relative to unique dimensions of Asian economic development paradigm, as they are investigated by researchers, (iii) comparative studies of development paradigms in other developing continents, Latin America and Africa, (iv) the emerging new pattern of comparative advantages between Asian countries and the United States and North America.
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