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Venture Capital and Firm Performance Over the Long-Run: Evidence from High-Tech IPOs in the United States

  • James R. Brown

    (Montana State University)

Registered author(s):

    Despite widespread interest in the key role that venture capital plays in financing young, high-tech firms, little is known about the relative performance of venture-backed firms over the long-run. Using data from the U.S. high-tech sector, this paper examines the performance and financing of venture- and non-venture-backed firms during the decade following their IPO. Venture-backed firms survive longer, grow faster, are more R&D intensive, have generally superior operating performance, raise more external equity, and have a greater cumulative impact on the U.S. high-tech sector. These findings suggest that the true legacy of venture capital finance extends well beyond the IPO.

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    File URL: http://jefsite.org/RePEc/pep/journl/jef-2005-10-3-a-brown.pdf
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    Article provided by Pepperdine University, Graziadio School of Business and Management in its journal Journal of Entrepreneurial Finance and Business Ventures.

    Volume (Year): 10 (2005)
    Issue (Month): 3 (Fall)
    Pages: 1-33

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    Handle: RePEc:pep:journl:v:10:y:2005:i:3:p:1-33
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