Аннотация
Venture debt is an increasingly important vehicle for tech companies, and is seen as an important alternative to growth capital. However, its impact on startups in different phases of growth is not well researched. The present study aims to discuss on the correlation of Venture debt and technology startup investment in various countries in early stage and late stage. We used a cross-country panel, where the endogeneity was corrected by using a vector autoregression, and financing persistence and feedback between investment stages. Seed funding, grants, GDP, political stability and patents per inventor are also factors that are considered. To analyze the temporal effects of the shocks to venture-debt, the stationarity tests, lag-selection criteria, impulse-response functions and the model diagnostics are used. In conclusion, the study sheds light on the evidence at the ecosystem level and how venture debt affects startups' financing dynamics.