Clustering European Venture capital funds based on investments
Abstract
In this paper we study European venture capital industry by applying clustering algorithm. The aim is to find how VC funds invest using Top 500 European Venture capital funds data from Dealroom.co. First, we review the current state of Venture Capital in Europe and how it is expanding over the years using Pitchbook data. Secondly, we apply K-means clustering algorithm to find clusters in top European venture capital funds by using four variables. Moreover, we introduce validation tests of the results – One-way ANOVA and Bonferroni procedure.
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