IPOs and venture capital


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.



Venture Capital Private Equity Venture Capital Investment Venture Capital Fund Venture Capital Firm 
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Copyright information

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

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