Public Venture Capital in Germany -Task Force or Forced Task?

This paper deals with the question of whether public venture capital (VC) isperforming its task properly, taking a look at how public VC companies’ selectionprocess, investment behavior, and consulting services reflect goals that differ fromthose of private VC firms. The results present evidence that public VC firmsdeliver a different market segment than their private counterparts; for example,their selection process and syndication behavior reveal their predominant goal ofpromoting the local economy. Although the results indicate that public VC firmsare doing what is expected of them, the analyses provide evidence that publicintervention should be reconsidered...