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

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...

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...