on going public are valued higher on the day of their IPO, have more patents and have more citations to their patents …We find that VC-backed firms receiving their initial investment in hot markets are less likely to IPO, but conditional …. Our results suggest that VCs invest in riskier and more innovative startups in hot markets (rather than just worse firms …

conditional on going public are valued higher on the day of their IPO, have more patents and have more citations to their patents …. Our results suggest that VCs invest in riskier and more innovative startups in hot markets (rather than just worse firms … markets also plays a causal role in shifting investments to more novel startups – by lowering the cost of experimentation for …

, progressive taxation as well as investment and output subsidies to the entrepreneurial sector. …