Annualized and Cumulative Returns on Venture-Backed Public Companies Categorized by Industry
This paper investigates the actual performance of 2,895 Initial Public Offerings of companies that were backed by venture capital from 1968 through 1998. It seeks to refute the myth that investors demand very high annualized and cumulative rates of return to compensate for the risks they are taking by financing ventures. In fact, it argues that, based on historical statistics, the total returns of the venture capital market are reasonable given the level of risk. This is done by concentrating on sections of various types of industries that have been supported by venture capital.
Volume (Year): 9 (2004)
Issue (Month): 3 (Fall)
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- Mansfield, Edwin, 1983. "Technological Change and Market Structure: An Empirical Study," American Economic Review, American Economic Association, vol. 73(2), pages 205-209, May.
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- Gompers, Paul A., 1996. "Grandstanding in the venture capital industry," Journal of Financial Economics, Elsevier, vol. 42(1), pages 133-156, September.
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- Yochanan Shachmurove, "undated". "An Empirical Investigation of IPO's Annualized Returns in the Last Three Decades," Penn CARESS Working Papers 823ad5f6b6eb3583cc703364e, Penn Economics Department.
- Yochanan Shachmurove, 2001. "Annualized Returns of Venture-Backed Public Companies Categorized by Stage of Financing: An Empirical Investigation of IPOS in the Last Three Decades," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 6(1), pages 44-58, Spring. Full references (including those not matched with items on IDEAS)
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