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IPOs and venture capital

Abstract

The literature on venture capital has identified three main reasons for why IPOs could play an important role in the venture capital cycle. These are:
  1. 1.

    IPOs on average generate significantly higher ROIs than other divestment venues,

     
  2. 2.

    entrepreneurs value the possibility to regain control over their firm via an IPO, and

     
  3. 3.

    IPOs signal that a given venture capital manager is successful and thus help raise follow-on funds.

     

Keywords

Venture Capital Private Equity Venture Capital Investment Venture Capital Fund Venture Capital Firm 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden 2006

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