Journal of Business Economics

, Volume 88, Issue 3–4, pp 325–362 | Cite as

Venture capital and private equity financing: an overview of recent literature and an agenda for future research

Original Paper

Abstract

This paper surveys the growing body of recent literature on venture capital (VC) and private equity (PE) and formulates an agenda for future research. Specifically, it covers and categorizes 314 articles that have appeared in top leading international journals since 2011 and points to areas that deserve deeper investigation. 67.8% of these works deal exclusively with VC and 26.8% deal exclusively with PE. The main “hot” topics in VC and PE research are: (1) heterogeneity (e.g., in affiliation, experience, reputation) within the VC and PE industries and its effects, (2) the causal link between VC and PE financing and various aspects of company performance, such as growth or innovation, (3) the performance of VC and PE funds and how to measure it properly. In the literature on VC, (4) internationalization and (5) the processes through which VC investors and entrepreneurs select and match with each other are also highly relevant topics. Most recent works (81.2%) are empirical and strategies that aim at identifying causal effects have been getting widespread. Although new sources of data have been used and the European (and to a lesser extent Asian) VC and PE industries have been gaining ground in recent research, more than 52% of all empirical papers still rely on US data.

Keywords

Venture capital Private equity Literature review Agenda for future research 

JEL Classification

G24 G34 M13 C18 O31 

References

  1. Acharya VV, Gottschalg OF, Hahn M, Kehoe C (2013) Corporate governance and value creation: evidence from private equity. Rev Financ Stud 26:368–402CrossRefGoogle Scholar
  2. Agrawal A, Tambe P (2016) Private equity and workers’ career paths: the role of technological change. Rev Financ Stud 29:2455–2489CrossRefGoogle Scholar
  3. Allen F (2012) Trends in financial innovation and their welfare impact: an overview. Eur Financ Manag 18:493–514CrossRefGoogle Scholar
  4. Alperovych Y, Hübner H, Lobet F (2015) How does governmental versus private venture capital backing affect a firm’s efficiency? Evidence from Belgium. J Bus Ventur 30:508–525CrossRefGoogle Scholar
  5. Alvarez-Garrido E, Dushnitsky G (2012) Are entrepreneurial venture’s innovation rates sensitive to investor complementary assets? Comparing biotech ventures backed by corporate and independent VCs. Strateg Manag J 37:819–834CrossRefGoogle Scholar
  6. Ang J, Hutton I, Majadillas MA (2014) Manager divestment in leveraged buyouts. Eur Financ Manag 20:462–493CrossRefGoogle Scholar
  7. Arcot S (2014) Participating convertible preferred stock in venture capital exits. J Bus Ventur 29:72–87CrossRefGoogle Scholar
  8. Arqué-Castells P (2012) How venture capitalists spur invention in spain: evidence from patent trajectories. Res Policy 41:897–912CrossRefGoogle Scholar
  9. Aslan H, Kumar P (2011) Lemons or cherries growth opportunities and market temptations in going public and private. J Financ Quant Anal 46:489–526CrossRefGoogle Scholar
  10. Atanasov V, Ivanov V, Litvak K (2012) Does reputation limit opportunistic behavior in the VC industry? Evidence from litigation against Vcs. J Financ 67:2215–2246CrossRefGoogle Scholar
  11. Axelson U, Jenkinson T, Strömberg P, Weisbach MS (2013) Borrow cheap, buy high? The determinant of leverage and pricing in buyouts. J Financ 68:2223–2267CrossRefGoogle Scholar
  12. Bacon-Gerasymenko V, Coff R, Durand R (2016) Taking a second look in a warped crystal ball: explaining the accuracy of revised forecasts. J Manage Stud 53:1292–1319CrossRefGoogle Scholar
  13. Ball E, Chiu HH, Smith R (2011) Can Vcs time the market? An analysis of exit choice for venture-backed firms. Rev Financ Stud 24:3105–3138CrossRefGoogle Scholar
  14. Barrot JN (2016) Investor horizon and the life cycle of innovative firms: evidence from venture capital. Manag Sci. doi: 10.2139/ssrn.2024601 (Forthcoming) Google Scholar
  15. Barry CB, Mihov VT (2015) Debt financing, venture capital, and the performance of initial public offerings. J Bank Financ 58:144–165CrossRefGoogle Scholar
  16. Bascha A, Walz U (2001) Convertible securities and optimal exit decisions in venture capital finance. J Corp Financ 7:285–306CrossRefGoogle Scholar
  17. Bayar O, Chemmanur TJ (2011) IPOs versus acquisitions and the valuation premium puzzle: a theory of exit choice by entrepreneurs and venture capitalists. J Financ Quant Anal 46:1755–1793CrossRefGoogle Scholar
  18. Bayar O, Chemmanur TJ (2012) What drives the valuation premium in IPOs versus acquisitions? An empirical analysis. J Corp Financ 18:451–475CrossRefGoogle Scholar
  19. Bengtsson O (2011) Covenants in venture capital contracts. Manage Sci 57:1926–1943CrossRefGoogle Scholar
  20. Bengtsson O (2013) Relational venture capital financing of serial founders. J Financ Intermed 22:308–334CrossRefGoogle Scholar
  21. Bengtsson O, Bernhardt D (2014) Different problems, same solution: contract-specialization in venture capital. J Econ Manag Strategy 23:396–426CrossRefGoogle Scholar
  22. Bengtsson O, Hand JRM (2013) Employee compensation in entrepreneurial companies. J Econ Manag Strategy 22:312–340CrossRefGoogle Scholar
  23. Bengtsson O, Hsu DH (2015) Ethnic matching in the U.S. venture capital market. J Bus Ventur 30:338–354CrossRefGoogle Scholar
  24. Bengtsson O, Sensoy BA (2011) Investor abilities and financial contracting: evidence from venture capital. J Financ Intermed 20:477–502Google Scholar
  25. Bengtsson O, Sensoy BA (2015) Changing the nexus: the evolution and renegotiation of venture capital contracts. J Financ Quant Anal 50:349–375CrossRefGoogle Scholar
  26. Berger AN, Schaeck K (2011) Small and medium-sized enterprises, bank relationship strength, and the use of venture capital. J Money Credit Bank 43:461–490CrossRefGoogle Scholar
  27. Bernstein S, Sheen A (2016) The operational consequences of private equity buyouts: evidence from the restaurant industry. Rev Financ Stud 29(9):2387–2418CrossRefGoogle Scholar
  28. Bernstein S, Giroud X, Townsend RR (2015) The impact of venture capital monitoring. J Financ 71:1591–1622CrossRefGoogle Scholar
  29. Bernstein S, Lerner J, Sorensen M, Strömberg P (2016) Private equity and industry performance. Manag Sci. doi: 10.1287/mnsc.2015.2404 (Forthcoming) Google Scholar
  30. Bertoni F, Tykvová T (2015) Does governmental venture capital spur invention and innovation? Evidence from young european biotech companies. Res Policy 44:925–935CrossRefGoogle Scholar
  31. Bertoni F, Colombo MG, Grilli L (2011) Venture capital financing and the growth of high-tech start-ups: disentangling treatment from selection effects. Res Policy 40:1028–1043CrossRefGoogle Scholar
  32. Bhattacharya S, Guriev S (2013) Control rights over intellectual property. J Ind Econ 61:564–591CrossRefGoogle Scholar
  33. Bhattacharya U, Borisov A, Yu X (2015) Firm mortality and natal financial care. J Financ Quant Anal 50:61–88CrossRefGoogle Scholar
  34. Black BS, Gilson RJ (1998) Venture capital and the structure of capital markets: banks versus stockmarkets. J Financ Econ 47:243–277CrossRefGoogle Scholar
  35. Bloom N, Sadun R, Van Reenen J (2015) Do private equity owned firms have better management practices. Am Econ Rev 105:442–446CrossRefGoogle Scholar
  36. Boone AL, Mulherin JH (2011) Do private equity consortiums facilitate collusion in takeover bidding? J Corp Financ 17:1475–1495CrossRefGoogle Scholar
  37. Bottazzi L, Da Rin M, Hellmann T (2008) Who are the active investors? Evidence from venture capital. J Financ Econ 89:488–512CrossRefGoogle Scholar
  38. Bottazzi L, Da Rin M, Hellmann T (2009) What is the role of legal systems in financial intermediation? Theory and evidence. J Financ Intermed 18:559–598CrossRefGoogle Scholar
  39. Bottazzi L, Da Rin M, Hellmann T (2016) The importance of trust for investment: evidence from venture capital. Rev Financ Stud 29:2283–2318CrossRefGoogle Scholar
  40. Boucly Q, Sraer D, Thesmar D (2011) Growth LBOs. J Financ Econ 102:432–453CrossRefGoogle Scholar
  41. Bradley D, Kim I, Krigman L (2015) Top VC IPO underpricing. J Corp Financ 31:186–202CrossRefGoogle Scholar
  42. Brander JA, Amit R, Antweiler W (2002) Venture capital syndication: improved venture selection versus the value-added hypothesis. J Econ Manag Strategy 11:423–452CrossRefGoogle Scholar
  43. Brander JA, Du Q, Hellmann T (2015) The effects of government-sponsored venture capital: international evidence. Rev Financ 19:571–618CrossRefGoogle Scholar
  44. Buzzacchi L, Scellato G, Ughetto E (2015) Investment stage drifts and venture capital managerial incentives. J Corp Financ 33:118–128CrossRefGoogle Scholar
  45. Cao JX, Cumming D, Qian M, Wang X (2015) Cross-border LBOs. J Bank Financ 50:69–80CrossRefGoogle Scholar
  46. Caselli S, Garcia-Appendini E, Ippolito F (2013) Contracts and returns in private equity investments. J Financ Intermed 22:201–217CrossRefGoogle Scholar
  47. Castellaneta F, Gottschalg O (2016) Does ownership matter in private equity? The sources of variance in buyouts performance. Strateg Manag J 37:330–348CrossRefGoogle Scholar
  48. Celikyurt U, Sevilir M, Shivdasani A (2014) Venture capitalists on boards of mature public firms. Rev Financ Stud 27:56–101CrossRefGoogle Scholar
  49. Cestone G (2013) Venture capital meets contract theory: risky claims or formal control? Rev Financ 18:1097–1137CrossRefGoogle Scholar
  50. Chahine S, Goergen M (2011a) VC board representation and performance of US IPOs. J Bus Financ Account 38:413–445CrossRefGoogle Scholar
  51. Chahine S, Goergen M (2011b) The two side of CEO option grants at the IPO. J Corp Financ 17:1116–1131CrossRefGoogle Scholar
  52. Chahine S, Arthurs JD, Filatotchev I, Hoskisson RE (2012) The Effects of venture capital syndicate diversity on earning management and performance of IPOs in the US and UK: an institutional perspective. J Corp Financ 18:179–192CrossRefGoogle Scholar
  53. Chemmanur TJ, Krishnan K, Nandy DK (2011) How does venture capital financing improve efficiency in private firms? A look beneath the surface. Rev Financ Stud 24:4037–4090CrossRefGoogle Scholar
  54. Chemmanur TJ, Loutskina E, Tian X (2014) Corporate venture capital, value creation, and innovation. Rev Financ Stud 27:2433–2473Google Scholar
  55. Chen G, Kang JK, Kim JM, Na HS (2014) Sources of value gains in minority equity investments by private equity funds: evidence from block share acquisitions. J Corp Financ 29:449–474CrossRefGoogle Scholar
  56. Chung JW, Sensoy BA, Stern L, Weisbach MS (2012) Pay for performance from future fund flows: the case of private equity. Rev Financ Stud 25:3259–3304CrossRefGoogle Scholar
  57. Cohn JB, Mills LF, Towery EM (2014) The evolution of capital structure and operating performance after leveraged buyouts: evidence from U.S. corporate tax returns. J Financ Econ 111:469–494CrossRefGoogle Scholar
  58. Colombo MG, Murtinu S (2017) Venture capital investments in Europe and Portfolio firms’ economic performance: independent versus corporate investors. J Econ Manag Strategy 26:35–66CrossRefGoogle Scholar
  59. Colombo MG, D’Adda D, Pirelli LH (2016) The participation of new technology-based firms in EU-funded R&D partnerships: the role of venture capital. Res Policy 45:361–375CrossRefGoogle Scholar
  60. Conti A, Thursby M, Rothaermel FT (2013) Show me the right stuff: signals for high-tech startups. J Econ Manag Strategy 22:341–364CrossRefGoogle Scholar
  61. Cornelli F, Kominek ZW, Ljungqvist A (2013) Monitoring managers: does it matter? J Financ 68:431–481CrossRefGoogle Scholar
  62. Croce A, Martí J, Murtinu S (2013) The impact of venture capital on the productivity growth of European entrepreneurial firms: screening or value added effect? J Bus Ventur 28:489–510CrossRefGoogle Scholar
  63. Cumming D, Dai N (2012) Why do entrepreneurs switch lead venture capitalists? Entrep Theory Pract 37:999–1017CrossRefGoogle Scholar
  64. Cumming D, Knill A (2012) Disclosure, venture capital and entrepreneurial spawning. J Int Bus Stud 43:563–590CrossRefGoogle Scholar
  65. Cumming D, Zambelli S (2013) Private equity performance under extreme regulation. J Bank Financ 37:1508–1523CrossRefGoogle Scholar
  66. Cumming D, Knill A, Syvrud K (2016) Do international investors enhance private firm value: evidence from venture capital. J Int Bus Stud 47:347–373CrossRefGoogle Scholar
  67. Cumming D, Grilli L, Murtinu S (2017) Governmental and independent venture capital investments in Europe a firm-level performance analysis. J Corp Financ 42:439–459CrossRefGoogle Scholar
  68. Da Rin M, Hellmann T, Puri ML (2013) A survey of venture capital research. In: Constantinides G, Harris M, Stulz R (eds) Handbook of the economics of finance, Part A, 2nd edn. Elsevier, Amsterdam, pp 573–648CrossRefGoogle Scholar
  69. Dai N, Nahata R (2016) Cultural differences and cross-border venture capital syndication. J Int Bus Stud 47:140–169CrossRefGoogle Scholar
  70. Dai N, Jo H, Kassicieh S (2012) Cross-Border venture capital investments in Asia: selection and exit performance. J Bus Ventur 27:666–684CrossRefGoogle Scholar
  71. Das SR, Jo H, Kim Y (2011) Polishing diamonds in the rough. The sources of syndicated venture performance. J Financ Intermed 20:199–230CrossRefGoogle Scholar
  72. Davis S, Haltiwanger J, Handley K, Jarmin R, Lerner J, Miranda J (2014) Private equity, jobs, and productivity. Am Econ Rev 104:3956–3990CrossRefGoogle Scholar
  73. de Bettignies JE, Duchene A (2015) Product market competition and the financing of new ventures. Manage Sci 61:1849–1867CrossRefGoogle Scholar
  74. Degeorge F, Martin J, Phalippou L (2016) On secondary buyouts. J Financ Econ 120:124–145CrossRefGoogle Scholar
  75. Devigne D, Manigart S, Wright M (2016) Escalation of commitment in venture capital decision making: differentiating between domestic and international investors. J Bus Ventur 31:253–271CrossRefGoogle Scholar
  76. Dokko G, Gaba V (2012) Venturing into new territory: career experiences of corporate venture capital managers and practice variation. Acad Manag J 55:563–583CrossRefGoogle Scholar
  77. Driessen J, Lin TC, Phalippou L (2012) A new method to estimate risk and return of nontraded assets from cash flows: the case of private equity funds. J Financ Quant Anal 47:511–535CrossRefGoogle Scholar
  78. Drover W, Wood MS, Payne GT (2013) The effects of perceived control on venture capitalist investment decision: a configurational perspective. Entrepr Theory Pract 38:833–861CrossRefGoogle Scholar
  79. Drover W, Wood MS, Fassin Y (2014) Take The money or run? Investors’ ethical reputation and entrepreneurs’ willingness to partner. J Bus Ventur 29:723–740CrossRefGoogle Scholar
  80. Drover W, Wood MS, Zacharakis A (2015) Attribute of angel and crowdfunded investments as determinants of vc screening decisions. Entrepr Theory Prac. doi: 10.1111/etap.12207 (Forthcoming) Google Scholar
  81. Dutta S, Folta T (2016) A comparison of the effect of angels and venture capitalists on innovation and value creation. J Bus Ventur 31:39–54CrossRefGoogle Scholar
  82. Eckhardt J, Shane S, Delmar F (2006) Multistage selection and the financing of new ventures. Manage Sci 52:220–232CrossRefGoogle Scholar
  83. Edgerton J (2012) Agency problems in public firms: evidence from corporate jets in leveraged buyouts. J Financ 67:2187–2213CrossRefGoogle Scholar
  84. Espenlaub S, Khurshed A, Mohamed A (2015) Venture capital exits in domestic and cross-border investments. J Bank Financ 53:215–232CrossRefGoogle Scholar
  85. Ewens M, Rhodes-Kropf M (2015) Is a VC partnership greater than the sum of its partners? J Financ 70:1081–1113CrossRefGoogle Scholar
  86. Ewens M, Jones CM, Rhodes-Kropf M (2013) The price of diversifiable risk in venture capital and private equity. Rev Financ Stud 26:1853–1889CrossRefGoogle Scholar
  87. Fabrizi S, Lippert S, Norbäck PJ, Persson L (2013) Venture capitalists and the patenting of innovations. J Ind Econ 61:623–659CrossRefGoogle Scholar
  88. Fairchild R (2011) An entrepreneur’s choice of venture capitalist or angel-financing: a behavioral game-theoretic approach. J Bus Ventur 26:359–374CrossRefGoogle Scholar
  89. Fang L, Ivashina V, Lerner J (2015) The disintermediation of financial markets direct investing in private equity. J Financ Econ 116:160–178CrossRefGoogle Scholar
  90. Flor CR, Grell KB (2013) Venture capital budgeting—carry and correlation. J Corp Financ 21:216–234CrossRefGoogle Scholar
  91. Gbadji LAG, Gailly B, Schwienbacher A (2014) International analysis of venture capital programs of large corporations and financial institutions. Entrepr Theory Prac 39:1213–1245CrossRefGoogle Scholar
  92. Gerasymenko V, Arthurs JD (2014) New insights into venture capitalists’ activity IPO and time-to-exit forecast as antecedents of their post-investment involvement. J Bus Ventur 29:405–420CrossRefGoogle Scholar
  93. Gerasymenko V, De Clercq D, Sapienza HJ (2015) Changing the business model: effects of venture capital firms and outside ceos on portfolio company performance. Strateg Entrepr J 9:79–98CrossRefGoogle Scholar
  94. Gill A, Walz U (2016) Are VC-backed IPOs delayed trade sales? J Corp Financ 37:356–374CrossRefGoogle Scholar
  95. Giot P, Hege U, Schwienbacher A (2014) Are novice private equity funds risk-takers? evidence from a comparison with established funds. J Corp Financ 27:55–71CrossRefGoogle Scholar
  96. Gompers PA (1996) Grandstanding in the venture capital industry. J Financ Econ 42:133–156CrossRefGoogle Scholar
  97. Gompers PA (2007) Venture capital. In: Eckbo E (ed) Handbook of corporate finance, 1st edn. Elsevier, Amsterdam, pp 481–527Google Scholar
  98. Gompers PA, Lerner J (2000) Money chasing deals? The impact of fund inflows on private equity valuations. J Financ Econ 55:281–325CrossRefGoogle Scholar
  99. Gompers PA, Lerner J (2001) The venture capital revolution. J Econ Perspect 15:145–168CrossRefGoogle Scholar
  100. Gompers PA, Mukharlyamov V, Xuan Y (2014) The cost of friendship. J Financ Econ 119:626–644CrossRefGoogle Scholar
  101. Grenadier SR, Malenko A (2011) Real options signaling games with applications to corporate finance. Rev Financ Stud 24:3993–4036CrossRefGoogle Scholar
  102. Grilli L, Murtinu S (2014) Government, venture capital and the growth of european high-tech entrepreneurial firms. Res Policy 43:1523–1543CrossRefGoogle Scholar
  103. Gu Q, Lu JW (2011) Effects of inward investment on outward investment: the venture capital industry worldwide 1985–2007. J Int Bus Stud 42:263–284CrossRefGoogle Scholar
  104. Gu Q, Lu X (2014) Unraveling the mechanisms of reputation and alliance formation: a study of venture capital syndication in China. Strateg Manag J 35:739–750CrossRefGoogle Scholar
  105. Guerini M, Quas A (2016) Governmental venture capital in Europe: screening and certification. J Bus Ventur 31:175–195CrossRefGoogle Scholar
  106. Guo D, Jiang K (2013) Venture capital investment and the performance of entrepreneurial firms: evidence from China. J Corp Financ 22:375–395CrossRefGoogle Scholar
  107. Guo S, Hotchkiss ES, Song W (2011) Do buyouts (still) create value? J Financ 66:479–517CrossRefGoogle Scholar
  108. Guo B, Lou Y, Pérez-Castrillo D (2015) Investment, duration, and exit strategies for corporate and independent venture capital-backed start-ups. J Econ Manag Strategy 24:415–455CrossRefGoogle Scholar
  109. Haeussler C, Harhoff D, Mueller E (2014) How patenting informs VC investors—the case of biotechnology. Res Policy 43:1286–1298CrossRefGoogle Scholar
  110. Harris RS, Jenkinson T, Kaplan SN (2014) Private equity performance: what do we know? J Financ 69:1851–1882CrossRefGoogle Scholar
  111. Hartmann-Wendels T, Keienburg G, Sievers S (2011) Adverse selection, investor experience and security choice in venture capital finance: evidence from germany. Eur Financ Manag 17:464–499CrossRefGoogle Scholar
  112. Hedge D, Tumlinson J (2014) Does social proximity enhance business partnerships? Theory and evidence from ethnicity’s role In U.S. venture capital. Manag Sci 60:2355–2380CrossRefGoogle Scholar
  113. Hellmann T (2006) IPOs, acquisitions, and the use of convertible securities in venture capital. J Financ Econ 81:649–679CrossRefGoogle Scholar
  114. Hellmann T, Thiele V (2015) Friends or foes? The interrelationship between angel and venture capital markets. J Financ Econ 115:639–653CrossRefGoogle Scholar
  115. Heughebaert A, Manigart S (2012) Firm valuation in venture capital financing rounds the role of investor bargaining power. J Bus Financ Account 39:500–530CrossRefGoogle Scholar
  116. Hochberg YV (2012) Venture capital and corporate governance in the newly public firm. Rev Financ 16:429–480CrossRefGoogle Scholar
  117. Hochberg YV, Rauh JD (2013) Local overweighting and underperformance: evidence from limited partner private equity investments. Rev Financ Stud 26:403–451CrossRefGoogle Scholar
  118. Hochberg YV, Ljungqvist A, Jorgensen AV (2014) Informational holdup and performance persistence in venture capital. Rev Financ Stud 27:102–152CrossRefGoogle Scholar
  119. Hochberg YV, Lindsey LA, Westerfield MM (2015) Resource accumulation through economic ties: evidence from venture capital. J Financ Econ 118:245–267CrossRefGoogle Scholar
  120. Hoenig D, Henkel J (2015) Quality signals the role of patents, alliances, and team experience in venture capital financing. Res Policy 44:1049–1064CrossRefGoogle Scholar
  121. Hopp C, Lukas C (2013) A signaling perspective on partner selection in venture capital syndicates. Entrepr Theory Prac 38:635–670CrossRefGoogle Scholar
  122. Hsu D (2004) What do entrepreneurs pay for venture capital affiliation. J Financ 59:1805–1844CrossRefGoogle Scholar
  123. Humphery-Jenner M, Suchard JA (2013) Foreign VCs and venture success: evidence from China. J Corp Financ 21:16–35CrossRefGoogle Scholar
  124. Imad’Eddine G, Schwienbacher A (2013) International capital flows into the European private equity market. Eur Financ Manag 19:366–398CrossRefGoogle Scholar
  125. Invest Europe (2016) European private equity activity data 2015. https://www.investeurope.eu/research/invest-europe-publications. Accessed 15 Apr 2017
  126. Jääskeläinen M, Maula M (2014) Do networks of financial intermediaries help reduce local bias? evidence from cross-border venture capital exits. J Bus Ventur 24:704–721CrossRefGoogle Scholar
  127. Jegadeesh N, Kräussl R, Pollet JM (2015) Risk and expected returns of private equity investments: evidence based on market prices. Rev Financ Stud 28:3269–3302CrossRefGoogle Scholar
  128. Jelic R (2011) Staying power of UK buy-outs. J Bus Financ Account 38:945–986CrossRefGoogle Scholar
  129. Jenkinson T, Sousa M (2015) What determines the exit decision for leveraged buyouts? J Bank Financ 59:399–408CrossRefGoogle Scholar
  130. Jia M, Zhang Z (2014) Donating money to get money: the role of corporate philanthropy in stakeholder reactions to IPOs. J Manage Stud 51:1118–1152Google Scholar
  131. Johan SA, Knill A, Mauck N (2013) Determinants of sovereign wealth fund investment in private equity vs public equity. J Int Bus Stud 44:155–172CrossRefGoogle Scholar
  132. Jovanovic B, Szentes B (2015) On the market for venture capital. J Polit Econ 121:493–527CrossRefGoogle Scholar
  133. Kang HG, Burton RM, Mitchell W (2011) How potential knowledge spillovers between venture capitalists’ entrepreneurial projects affect the specialization and diversification of VC funds when VC effort has value. Strateg Entrepr J 5:227–246CrossRefGoogle Scholar
  134. Kaplan SN, Schoar A (2005) Private equity performance: returns, persistence, and capital flows. J Financ 60:1791–1823CrossRefGoogle Scholar
  135. Kaplan SN, Sensoy BA (2015) Private equity performance: a survey. Ann Rev Financ Econ 7:597–614CrossRefGoogle Scholar
  136. Kaplan SN, Strömberg P (2003) Financial contracting theory meets the real world: an empirical analysis of venture capital contracts. Rev Econ Stud 70:281–315CrossRefGoogle Scholar
  137. Kaplan SN, Strömberg P (2009) Leveraged buyouts and private equity. J Econ Perspect 23:121–146CrossRefGoogle Scholar
  138. Kaplan SN, Martel F, Strömberg P (2007) How do legal differences and experience affect financial contracts? J Financ Intermed 16:273–311CrossRefGoogle Scholar
  139. Khavul S, Deeds D (2016) The evolution of initial co-investment syndications in an emerging venture capital market. J Int Manag 22:280–293CrossRefGoogle Scholar
  140. Khoury TA, Junkunc M, Mingo S (2015) Navigating political hazard risks and legal system quality: venture capital investments in Latin America. J Manag 41:808–840Google Scholar
  141. Kim JH, Wagman L (2016) Early-stage entrepreneurial financing: a signaling perspective. J Bank Financ 67:12–22CrossRefGoogle Scholar
  142. Kolb J, Tykvová T (2016) Going public via special purpose acquisition companies: frogs do not turn into princes. J Corp Financ 40:80–96CrossRefGoogle Scholar
  143. Kolympiris C, Kalaitzandonakes N, Miller D (2011) Spatial collocation and venture capital in the US biotechnology industry. Res Policy 40:1188–1199CrossRefGoogle Scholar
  144. Korteweg A, Nagel S (2016) Risk-adjusting the returns to venture capital. J Financ 71:1437–1470CrossRefGoogle Scholar
  145. Kovner A, Lerner J (2015) Doing well by doing good? Community development venture capital. J Econ Manag Strategy 24:643–663CrossRefGoogle Scholar
  146. Kräussl R, Krause S (2014) Has Europe been catching up an industry level analysis of venture capital success over 1985–2009. Eur Financ Manag 20:179–205CrossRefGoogle Scholar
  147. Krishnan CNV, Ivanov VI, Masulis RW, Singh AK (2011) Venture capital reputation, post-IPO performance, and corporate governance. J Financ Quant Anal 46:1295–1333CrossRefGoogle Scholar
  148. Lahr H, Mina A (2016) Venture capital investments and the technological performance of portfolio firms. Res Policy 45:303–318CrossRefGoogle Scholar
  149. Lee G, Masulis RW (2011) Do more reputable financial institutions reduce earnings management by IPO issuers? J Corp Financ 17:982–1000CrossRefGoogle Scholar
  150. Lee IH, Paik Y, Uygur U (2016) Does gender matter in the export performance of international new ventures? Mediation effects of firm-specific and country-specific advantages. J Int Manag 22:365–379CrossRefGoogle Scholar
  151. Lerner J (2008) Boulevard of broken dreams: why public efforts to boost entrepreneurship and venture capital have failed. Princeton University Press, PrincetonGoogle Scholar
  152. Lerner J, Schoar A (2005) Does legal enforcement affect financial transactions? The contractual channel in private equity. Quart J Econ 120:223–246Google Scholar
  153. Lerner J, Sorensen M, Strömberg P (2011) Private equity and long-run investment: the case of innovation. J Financ 66:445–477CrossRefGoogle Scholar
  154. Li Y, Zahra SA (2012) Formal institutions, culture, and venture capital activity: a cross-country analysis. J Bus Ventur 27:95–111CrossRefGoogle Scholar
  155. Li Y, Vertinsky IB, Li J (2014) National distances, international experience, and venture capital investment performance. J Bus Ventur 29:471–489CrossRefGoogle Scholar
  156. LiPuma JA, Park S (2013) Venture capitalists’ risk mitigation of portfolio company internationalization. Entrepr Theory Pract 38:1183–1205CrossRefGoogle Scholar
  157. Liu X, Ritter JR (2011) Local underwriter oligopolies and IPO underpricing. J Financ Econ 102:579–601CrossRefGoogle Scholar
  158. Ma D, Rhee M, Yang D (2013) Power source mismatch and the effectiveness of interorganizational relations: the case of venture capital syndication. Acad Manag J 56:711–734CrossRefGoogle Scholar
  159. Masulis RW, Nahata R (2011) Venture capital conflicts of interest evidence from acquisitions of venture-backed firms. J Financ Quant Anal 46:395–430CrossRefGoogle Scholar
  160. Megginson WL, Weiss KA (1991) Venture capitalist certification in initial public offerings. J Financ 46:879–903CrossRefGoogle Scholar
  161. Metrick A, Yasuda A (2011) Venture capital and other private equity: a survey. Eur Financ Manag 17:619–654CrossRefGoogle Scholar
  162. Meuleman M, Wright M (2011) Cross-border private equity syndication: institutional context and learning. J Bus Ventur 26:35–48CrossRefGoogle Scholar
  163. Michel JS (2014) Return on recent VC investment and long-run IPO returns. Entrepr Theory Pract 38:527–549CrossRefGoogle Scholar
  164. Milanov H, Shepherd DA (2013) The importance of the first relationship: the ongoing influence of initial network on future status. Strateg Manag J 34:727–750CrossRefGoogle Scholar
  165. Munari F, Toschi L (2015) Assessing the impact of public venture capital programmes in the United Kingdom: do regional characteristics matter? J Bus Ventur 30:205–226CrossRefGoogle Scholar
  166. Murnieks CY, Haynie JM, Wiltbank RE, Hartin T (2011) I like how you think: similarity as an interaction bias in the investor-entrepreneur dyad. J Manag Stud 48:1533–1561CrossRefGoogle Scholar
  167. Nahata R (2008) Venture capital reputation and investment performance. J Financ Econ 90:127–151CrossRefGoogle Scholar
  168. Nahata R, Hazarika S, Tandon K (2014) Success in global venture capital investing: do institutional and cultural differences matter? J Financ Quant Anal 49:1039–1070CrossRefGoogle Scholar
  169. Nam D, Park HD, Arthurs JD (2014) Looking attractive until you sell earnings management, lockup expiration, and venture capitalists. J Manag Stud 51:1286–1310CrossRefGoogle Scholar
  170. Nanda R, Rhodes-Kropf M (2013) Investment cycles and startup innovation. J Financ Econ 110:403–418CrossRefGoogle Scholar
  171. Nanda R, Rhodes-Kropf M (2016) Financing risk and innovation. Manag Sci. doi: 10.1287/mnsc.2015.2350 (Forthcoming) Google Scholar
  172. Ozmel U, Reuer JJ, Gulati R (2013a) Signals across multiple networks how venture capital and alliance networks affect interorganizational collaboration. Acad Manag J 56:852–866CrossRefGoogle Scholar
  173. Ozmel U, Robinson DT, Stuart TE (2013b) Strategic alliances, venture capital, and exit decisions in early stage high-tech firms. J Financ Econ 107:655–670CrossRefGoogle Scholar
  174. Paglia JK, Harjoto MA (2014) The effects of private equity and venture capital on sales and employment growth in small and medium-sized businesses. J Bank Financ 47:177–197CrossRefGoogle Scholar
  175. Pahnke EC, Katila R, Eisenhardt KM (2015a) Who takes you to the dance? how partners’ institutional logics influence innovation in young firms. Adm Sci Q 60:596–633CrossRefGoogle Scholar
  176. Pahnke EC, McDonald R, Wang D, Hallen B (2015b) Exposed: venture capital, competitor ties, and entrepreneurial innovation. Acad Manag J 58:1334–1360CrossRefGoogle Scholar
  177. Park HD, Steensma HK (2013) The selection and nurturing effects of corporate investors on new venture innovativeness. Strateg Entrepr J 7:311–330CrossRefGoogle Scholar
  178. Pe’er A, Gottschalg O (2011) Red and blue the relationship between the institutional context and the performance of leveraged buyout investments. Strateg Manag J 32:1356–1367CrossRefGoogle Scholar
  179. Petkova AP, Wadhwa A, Yao X, Jain S (2014) Reputation and decision making under ambiguity: a study of U.S. venture capital firms’ investments in the emerging clean energy sector. Acad Manag J 57:422–448CrossRefGoogle Scholar
  180. Petty JS, Gruber M (2011) In Pursuit of the real deal a longitudinal study of VC decision making. J Bus Ventur 26:172–188CrossRefGoogle Scholar
  181. Phalippou L (2014) Performance of buyout funds revisited? Rev Financ 18:189–218CrossRefGoogle Scholar
  182. Phalippou L, Gottschalg O (2009) The performance of private equity funds. Rev Financ Stud 22:1747–1776CrossRefGoogle Scholar
  183. Pollock TG, Lee PM, Jin K, Lashley K (2015) (Un)Tangled: exploring the asymmetric coevolution of new venture capital firms’ reputation and status. Adm Sci Q 60:482–517CrossRefGoogle Scholar
  184. Popov A (2014) Venture capital and industry structure: evidence from local US markets. Rev Financ 18:1059–1096CrossRefGoogle Scholar
  185. Popov A, Roosenboom P (2013) Venture capital and new business creation. J Bank Financ 37:4695–4710CrossRefGoogle Scholar
  186. Preqin (2016) 2016 Preqin global private equity and venture capital report. https://www.preqin.com/docs/samples/2016-Preqin-Global-Private-Equity-and-Venture-Capital-Report-Sample_Pages.pdf. Accessed 15 June 2017
  187. Prijcker S, Manigart S, Wright M, De Maeseneire W (2012) The influence of experiential, inherited and external knowledge on the internationalization of venture capital firms. Int Bus Rev 21:929–940CrossRefGoogle Scholar
  188. Puri M, Zarutskie R (2012) On the life cycle dynamics of venture-capital- and non-venture-capital-financed firms. J Financ 67:2247–2293CrossRefGoogle Scholar
  189. Ragozzino R, Blevins DP (2015) Venture-backed firms: how does venture capital involvement affect their likelihood of going public or being acquired. Entrepr Theory Pract 40:991–1016CrossRefGoogle Scholar
  190. Rassenfosse G, Fischer T (2016) Venture debt financing: determinants of the lending decision. Strateg Entrepr J 10:235–256CrossRefGoogle Scholar
  191. Renucci A (2014) Bargaining with venture capitalists when should entrepreneurs show their financial muscle? Rev Financ 18:2197–2214CrossRefGoogle Scholar
  192. Reuer JJ, Tong TW, Wu CW (2012) A signaling theory of acquisition premiums evidence from IPO targets. Acad Manag J 55:667–683CrossRefGoogle Scholar
  193. Rider CI (2012) How employees’ prior affiliations constrain organizational network change: a study of U.S. venture capital and private equity. Adm Sci Q 57:453–483CrossRefGoogle Scholar
  194. Robinson DT, Sensoy BA (2013) Do private equity fund managers earn their fees? Compensation, ownership and cash flow performance. Rev Financ Stud 26:2760–2797CrossRefGoogle Scholar
  195. Rubera G, Tellis GJ (2014) Spinoffs versus buyouts: profitability of alternate routes for commercializing innovations. Strateg Manag J 35:2043–2052CrossRefGoogle Scholar
  196. Sahlman WA (1990) The structure and governance of venture-capital organizations. J Financ Econ 27:473–521CrossRefGoogle Scholar
  197. Samila S, Sorenson O (2011) Noncompete covenants incentives to innovate or impediments to growth. Manag Sci 57:425–438CrossRefGoogle Scholar
  198. Schertler A, Tykvová T (2011) Venture capital and internationalization. Int Bus Rev 20:423–439CrossRefGoogle Scholar
  199. Schertler A, Tykvová T (2012) What lures cross-border venture capital inflows. J Int Money Financ 31:1777–1799CrossRefGoogle Scholar
  200. Scott Hsu HC (2013) Technology timing of IPOs and venture capital incubation. J Corp Financ 19:36–55CrossRefGoogle Scholar
  201. Sensoy BA, Wang Y, Weisbach MS (2014) Limited partner performance and the maturing of the private equity industry. J Financ Econ 112:320–343CrossRefGoogle Scholar
  202. Siming L (2014) Your former employees matter private equity firms and their financial advisors. Rev Financ 18:109–146CrossRefGoogle Scholar
  203. Sorensen M (2007) How smart is smart money? An empirical two-sided matching model of venture capital. J Financ 62:2725–2762CrossRefGoogle Scholar
  204. Sorensen M, Wang N, Yang J (2014) Valuing private equity. Rev Financ Stud 27:1977–2021CrossRefGoogle Scholar
  205. Souitaris V, Zerbinati S, Liu G (2012) Which iron cage? Endo- and exoisomorphism in corporate venture capital programs. Acad Manag J 55:477–505CrossRefGoogle Scholar
  206. Stuart T, Wang Y (2016) Who cooks the books in China, and does it pay? Evidence from private, high-technology firms. Strateg Manag J. doi: 10.1002/smj.2466 (Forthcoming) Google Scholar
  207. Taussig M, Delios A (2015) Unbundling the effects of institutions on firm resources: the contingent value of being local in emerging economy private equity. Strateg Manag J 36:1845–1865CrossRefGoogle Scholar
  208. Tian X (2011) The causes and consequences of venture capital stage financing. J Financ Econ 101:132–159CrossRefGoogle Scholar
  209. Tian X (2012) The role of venture capital syndication in value creation for entrepreneurial firms. Rev Financ 16:245–283CrossRefGoogle Scholar
  210. Tian X, Wang TY (2014) Tolerance for failure and corporate innovation. Rev Financ Stud 27:211–255CrossRefGoogle Scholar
  211. Tykvová T (2007) What do economists tell us about venture capital contracts? J Econ Surv 21:65–89CrossRefGoogle Scholar
  212. Tykvová T (2017) When and why do venture capital-backed companies obtain venture lending? J Financ Quant Anal 52:1049–1080CrossRefGoogle Scholar
  213. Tykvová T, Borell M (2012) Do private equity owners increase risk of financial distress and bankruptcy? J Corp Financ 18:138–150CrossRefGoogle Scholar
  214. Tykvová T, Schertler A (2014) Does syndication with local venture capitalists moderate the effects of geographical and institutional distance? J Int Manag 20:406–420CrossRefGoogle Scholar
  215. Vaaler PM (2011) Immigrant remittances and the venture investment environment of developing countries. J Int Bus Stud 42:1121–1149CrossRefGoogle Scholar
  216. Vanacker T, Collewart V, Paelemann I (2013) The relationship between slack resources and the performance of entrepreneurial firms: the role of venture capital and angel investors. J Manag Stud 50:1070–1096CrossRefGoogle Scholar
  217. Wang Y (2012) Secondary buyouts why buy and at what price? J Corp Financ 18:1306–1325CrossRefGoogle Scholar
  218. Wang XA, Wan WP (2013) Explaining the variance in underpricing among venture capital-backed IPOs: a comparison between private and corporate VC firms. Strateg Entrepr J 77:331–342CrossRefGoogle Scholar
  219. Wang L, Wang S (2012) Endogenous networks in investment syndication. J Corp Financ 18:640–663CrossRefGoogle Scholar
  220. Wilson N, Wright M, Siegel DS, Scholes L (2012) private equity portfolio company performance during the global recession. J Corp Financ 18:193–205CrossRefGoogle Scholar
  221. Wright M, Lockett A (2003) The structure and management of alliances: syndication in the venture capital industry. J Manag Stud 40:2073–2102CrossRefGoogle Scholar
  222. Wry T, Lounsbury M, Jennings P (2014) Hybrid vigor: securing venture capital by spanning categories in nanotechnology. Acad Manag J 57:1309–1333CrossRefGoogle Scholar
  223. Yeganegi S, Laplume AO, Dass P, Huynh CL (2016) Where do spinouts come from the role of technology relatedness and institutional context. Res Policy 45:1103–1112CrossRefGoogle Scholar
  224. Zarutskie R (2010) The role of top management team human capital in venture capital markets: evidence from first-time funds. J Bus Ventur 25:155–172CrossRefGoogle Scholar
  225. Zhang J, Yu H (2016) Venture capitalists’ experience and foreign IPOs: evidence from China. Entrepr Theory Pract. doi: 10.1111/etap.12228 (Forthcoming) Google Scholar
  226. Zhelyazkov PI, Gulati R (2016) After the break-up: the relational and reputational consequences of withdrawals from venture capital syndicates. Acad Manag J 59:277–301CrossRefGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany 2017

Authors and Affiliations

  1. 1.Universität HohenheimStuttgartGermany

Personalised recommendations