Supervisors: Claus Thrane & Michael S. Dahl
Discussants: Tünde Cserpes & Claus Thrane

Abstract
This study examines the influence of venture capital (VC) financing on startup performance in the Danish setting. Using a comprehensive dataset of Danish startups, we investigate the relationship between VC investments and various performance indicators, including company size, exports, value-added, and failure rates. Additionally, we analyze the differential effects of private and public VC investments on startup success.

The findings indicate that VC financing has a beneficial influence on startup performance across multiple dimensions. Startups that receive VC investments demonstrate higher levels of company growth, increased exports, and greater value-added contributions. Moreover, VC-backed firms have lower failure rates, suggesting that VC investments provide vital resources, expertise, and support to help startups navigate challenges and enhance their chances of success.

Furthermore, the study highlights the significance of private VC investments in driving startup performance. Private VC financing shows a stronger impact compared to public VC financing across all performance indicators examined. This finding emphasizes the role of private VC in promoting innovation, supporting growth, and improving the overall success of startups.

In conclusion, this research provides valuable insights into the influence of VC financing on startup performance in the Danish context. The findings highlight the positive impact of VC investments on startup success and underscore the importance of private VC financing in driving performance. The study contributes to the understanding of the venture capital industry and offers insights for policymakers, investors, and entrepreneurs seeking to optimize funding strategies and support startup growth and success. Further research can explore the generalizability of these findings, examine startup heterogeneity, and investigate additional dimensions of VC impact on startups.

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