Louise Short of Digital Impact (see "Making the Most of a VC Forum," [Article link]) sought venture capital to fund growth. But a recent survey reveals that venture capital helps companies in additional ways, as illustrated by key comparisons to Fortune 500 companies.
Venture-backed Fortune 500
Average annual research-and-development growth rate (1989-1993) 35% 9%
Average annual sales-per-employee growth rate (1989-1993) 12% 5%
Average investment in capital equipment as a percentage of revenues (1989-1993) 23% 7%
Source: "Fifth Annual Economic Impact of Venture Capital Study," Coopers & Lybrand, New York City, March 1995.* * *