The relative VC portfolio firm performance is to a large extent an unexplored field of research. Previous research covers the performance of venture capital backed firms that have gone through an IPO. Only a few studies explicitly covers operating performance of the VC backed firms. These studies do not explain how VC financed firms perform the first years after the VC funding event itself. Generally the results show that VC firms tend to grow faster in size than comparable firms, but little or no research has been done on other performance dimensions.

This empirical study investigates the performance of VC backed firms across multiple dimensions of performance using parallel indicators for each performance dimension. The performance dimensions examined in this paper is related to growth, efficiency and profitability.