Does Venture Capital Reputation Matter? Evidence from Subsequent IPOs.⋅
نویسندگان
چکیده
Reputation of a venture capitalist (VC) is based on experience, expertise and past performance. We investigate the relation between VC reputation measures and both the probability of future IPOs and their long-run performance. We measure long-run firm performance following three widely used approaches, namely industry-adjusted operating performance, market-to-book ratio, and long-run listing survival, plus two long-run growth measures. We find that when VC reputation is based on its market share of VC-backed IPOs, it has strong predictive power for the probability of subsequent IPOs backed by the same VC, and has strongly positive association with their post-IPO long-run performance.
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