Venture Capital and Underpricing: Capacity Constraints and Early Sales
نویسندگان
چکیده
منابع مشابه
Venture Capital and Underpricing: Capacity Constraints and Early Sales
We present a new theory about underpricing and Venture Capital-backed (VC-backed) companies where the key feature is capacity constraints Venture Capital firms can take only a limited number of new projects. This model can match the evidence gathered by the empirical literature on the grandstanding hypothesis, i.e., that younger Venture Capitalists rush to Initial Public Offers (IPOs). Moreover...
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In this paper we examine the premarket underpricing phenomenon within a group of venture-backed and a group of non venture-backed initial public offerings (IPOs) using a stochastic frontier approach. Consistent with previous research, we find that venture-backed IPOs are managed by more reputable underwriters and are generally associated with less underwriter compensation. However, unlike other...
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Banks routinely invest in the venture capital market. Why are they interested in venture capital, and how do their investments differ from independent venture capitalists? The banking literature suggests that banks may have some valuable expertise that they might want to leverage into venture capital. Alternatively, banks may want to build relationships in the venture market for their core lend...
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Cross-border investments represent a substantial share of venture capital activities. We use a new and comprehensive dataset on worldwide investments to analyze the internationalization of venture capital financing. Our results from the perspectives of (i) venture capitalists, (ii) portfolio companies, (iii) portfolio companies’ countries and (iv) pairs of venture capitalists’ and portfolio com...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.2034535