Who Are the True Venture Capitalists in Germany?

In this paper, we analyze the investment and divestment patterns of different types of venture capitalists. Using a data set embracing all venture-backed IPOs that occured on Germany's Neuer Markt we investigate whether the governance structures, objectives, abilities and track records of different types of venture capitalists have adecisive influence on their behavior. Our main finding is that significant differences among the different types of venture capitalists exist. The behavior of independent an corporate venture capitalists is more similar to that of US funds whereas bank-dependent and public venture capitalists typically are bridge investors rather than true venture capitalists. Our findings may be interesting for policy makers, for companies that seek capital an for venture capitalists who look for syndication partners