The decline in initial public offerings (IPOs) has raised concerns about the vitality of the venture capital industry. We examine capital recovery in the VC industry using returns for 1,215 M&A and 1,401 IPO exits from U.S. based venture-backed companies during 1985 to 2008. We find that mean...

The factors that drive the financing available to start-ups is a key issue for entrepreneurs, venture capitalists (VCs), and other investors in new ventures, especially in light of the difficult exit market the industry has faced over the last decade. We examine how the dollars gained and lost...

This study is the first to empirically construct exit returns - the return accruing to venture capitalists (VCs) from investments in portfolio companies - for a large sample of U.S. venture-backed companies. Exit returns are used (1) to document the size and trends in returns for specific...

Based on previous evidence that there are information heterogeneities in capital markets, three essays including empirical frameworks for examining the information processes that impact portfolio investments and corporate investments was proposed. The first essay considers information channels...