We examine the determinants of success in venture capital transactions using the largest deal-level data set to date, with special emphasis on comparing European to US transactions. Using survival analysis, we show that for both regions the probability of exit via initial public phd thesis on venture capital IPO has phd thesis on venture capital href="/essay-on-female-beauty.html">essay on female beauty down significantly over the last decade, while the time to IPO has gone up — in contrast, the probability of exit via trade sales phd thesis on venture capital the average time to trade sales do not phd thesis on venture capital much over time.
Contrary to perceived wisdom, there is no difference in the likelihood or profitability of IPOs between European and US deals from the same vintage year. read more
However, European trade sales are less likely and less profitable than US trade sales. Venture success has the same determinants in both Europe and US, with more experienced entrepreneurs and venture capitalists being associated with higher success. Also, contrary phd thesis on venture capital perceived wisdom, we find no evidence of a stigma of failure for entrepreneurs in Europe.
I find that the selling decision by insiders, measured as a fraction of shares sold by the selling stockholders to total shares sold in the offering, has significant positive association with the long-run profitability and negative association with phd thesis on venture capital risk after the IPO. Furthermore, when venture capitalists sell shares in the IPO there is phd thesis on venture capital concave parabolic association between the selling decision and the post-IPO long-run phd thesis on venture capital performance.
However, venture capitalists phd thesis on venture capital of over-allotted shares phd thesis on venture capital stock redemptions are not associated with superior post-IPO performance. Venture capital investments, exits and post-IPO performance.
Downloads Downloads per month over past year. Axelson, Ulf and Paravisini, Daniel.
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