Much of the current research regarding the venture capitalist examines samples of venture capital (VC) backed firms rather than the venture capitalist itself. While VC backed firms may represent the most reasonable proxy available for the study of the venture capitalist, consideration of firm-specific characteristics may need to be included to mitigate biased conclusions. Controlling for the determinants of capital structure, we examine the persistence of previously noted differences in capital structure choice and find that VC backing does not systematically alter the use of debt by firms. These results suggest that not controlling for firm specific differences when contrasting VC and non-VC backed firms may lead to inaccurate conclusions in venture capital research.

JEL Codes

G24, G32, M13


Capital , Firm , Venture Capital