We find that VC-backed firms receiving their initial investment in hot markets are more likely to go bankrupt, but 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...

Using a sample of 1,593 US firms that go public between 1990 and 2007, we find that VC-backed IPOs experience less financial distress risk post-offering than do comparable non-VC-backed IPOs. After controlling for endogeneity, we find this is related to the screening done by VC-investors, who...

We examine whether pre-IPO affiliations affect post-IPO corporate events, namely acquisitions. On the one hand, newly public acquirers may benefit from their pre-IPO affiliations through residual signaling value or/and resource-related benefits. On the other hand, newly-public acquirers may...

Contrary to conventional wisdom, we document that approximately 15% of VC-backed firms raise additional capital from VCs in the five years after going public. We propose two explanations for why firms revert to VC financing post-IPO. First, we hypothesize that VC participation in post-IPO...

This chapter focuses on the development of non-bank financial institutions, particularly venture capital (VC), angel capital, private equity, foreign funds and their role in funding entrepreneurial ventures in China. It examines the exits of VC-backed companies through IPOs and acquisitions. It...

I model an innovation game in which firms can choose to be leaders or followers. Internal finance leads to a stalemate in which each firm wants to free-ride on the others' experimentation costs. Therefore, no innovation occurs. When instead firms compete in the capital markets to finance...

Entrepreneurs need all the help they can get on their journey from inspiration to IPO. This book is required reading for any first time entrepreneur, and will make even more sense if you’re a seasoned entrepreneur! I highly commend Christian for embarking on this project and making the startup...