Where do we go? VC firm heterogeneity and the exit routes of newly listed high-tech firms
Language
EN
Article de revue
This item was published in
Small Business Economics. 2021, vol. 57, n° 3, p. 1339-1359
English Abstract
In this paper, we study how the support of heterogeneous venture capital firms (VCs), that is: independent venture capital firms (IVCs), bank-affiliated venture capital firms (BVCs), and corporate venture capital firms ...Read more >
In this paper, we study how the support of heterogeneous venture capital firms (VCs), that is: independent venture capital firms (IVCs), bank-affiliated venture capital firms (BVCs), and corporate venture capital firms (CVCs), shapes the delisting route of companies through business failure and merger and acquisitions (M&As), while distinguishing between European M&As and extra-EU M&As after the initial public offering (IPO). We find that the influence of the VCs in the firms’ post-IPO delisting varies according to the mode of delisting and the type of venture capitalist. In particular, we find that the presence of leading IVC and BVC investments before IPO is related to a lower likelihood of exiting the stock market through business failure but does not significantly affect the likelihood of M&As. In contrast, the presence of CVC investors is related to a higher likelihood of delisting through extra-EU M&As.Read less <
Keywords
Corporate venture capital
Bank-affiliated venture capital
English Keywords
IPO survivability
Independent venture capital
High-tech firms
Firm failure
Cross-border M&As
Link to research data
ANR Project
Initiative d'excellence de l'Université de Bordeaux - ANR-10-IDEX-0003