Venture capital is king for scaling startups, report shows
Startups backed by venture capital fare better than those financed by bank loans, university researchers have found.
Florida Atlantic University, York University and the University of Hong Kong teamed up to analyze data on small businesses compiled by the U.S. Census Bureau dating back to 1995. The analysis indicates a strong causal link between higher levels of venture capital investment and the growth rates of companies in terms of employment, payroll and number of firms.
The study, published...