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Venture capitalists and the decision to go public
TLDR
This article examined the timing of initial public offerings and private financings by venture capitalists and found that seasoned VCs are particularly proficient at taking companies public near market peaks, and that these companies go public when equity valuations are high and employ private finance when values are lower.About:
This article is published in Journal of Financial Economics.The article was published on 1994-06-01. It has received 974 citations till now. The article focuses on the topics: Venture capital & Social venture capital.read more
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The New Issues Puzzle
Tim Loughran,Jay R. Ritter +1 more
TL;DR: In this paper, the authors show that companies issuing stock during 1970 to 1990, whether an initial public offering (IPO) or a seasoned equity offering (SEO), significantly underperform relative to nonissuing firms for five years after the offering date.
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The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle
TL;DR: In this paper, the economics of small business finance in private equity and debt markets are examined. But the authors focus on the macroeconomic environment and do not consider the impact of the macro economic environment on small business.
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Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology
TL;DR: In this article, the authors investigate the impact of variation in startups' alliance network composition on their early performance and show that variation in the alliance networks startups configure at the time of their founding produces significant differences in their early performances.
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Interorganizational Endorsements and the Performance of Entrepreneurial Ventures
TL;DR: In this article, the authors investigate how the interorganizational networks of young companies affect their ability to acquire the resources necessary for survival and growth and propose that third parties rely on the prominence of the affiliates of those companies to make judgments about their quality and that young companies "endorsed by prominent exchange partners will perform better than otherwise comparable ventures that lack prominent associates.
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Optimal Investment, Monitoring, and the Staging of Venture Capital
TL;DR: This paper examined the structure of staged VC investments when agency and monitoring costs exist and found that expected agency costs increase as assets become less tangible, growth options increase, and asset specificity rises.
References
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Informational asymmetries, financial structure, and financial intermediation
TL;DR: This paper argued that the average quality is likely to be low, with the consequence that even projects which are known (by the entrepreneur) to merit financing cannot be undertaken because of the high cost of capital resulting from low average project quality.
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The Long‐Run Performance of initial Public Offerings
TL;DR: In this article, the authors used a sample of 1,526 IPOs that went public in the U.S. in the 1975-84 period, and found that in the 3 years after going public these firms significantly underperformed a set of comparable firms matched by size and industry.
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The structure and governance of venture-capital organizations
TL;DR: The authors describes and analyzes the structure of VC organizations, focusing on the relationship between investors and venture capitalists and between venture-capital firms and the ventures in which they invest, and contrasts VC organizations with large, publicly traded corporations and with leveraged buyout organizations.
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Initial Public Offerings and Underwriter Reputation
TL;DR: In this article, the authors examined the returns earned by subscribing to initial public offerings of equity (IPOs), and they showed that IPOs with more informed investor capital require higher returns, and that prestigious underwriters are associated with IPOs that have lower returns.
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Venture Capitalist Certification in Initial Public Offerings
TL;DR: In this article, the authors examined whether the presence of venture capitalists, as investors in a firm going public, can certify that the offering price of the issue reflects all available and relevant inside information.