Download or read book Venture Capital Firm s Reputation Effect on Its Start up Company s Long Term Operating Performance and Survivorship written by and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, I tested the effects of three proxies for venture capitalist(VC) reputation on its invested company's long term industry-djusted operating performances (ROA, ROE), market-to-book ratio and survival time (time to delisting) in the aftermarket. VC's market share and VC's IPO share have strong and positive association with the post-IPO long-term performance metrics, and the effects are statistically significant even after accounting for self-selection bias. For long term survivorship of start-up companies, I applied hazard analysis to the IPO company's time to delisting with accelerated failure time (AFT) model as the baseline hazard function, and found that start up companies with backing from higher VC's market share and VC's IPO share VC firms tend to have lower hazard rate of de-listing. The expected time to delisting is also found to be much shorter in the pre-technology bubble period (1985-1996) compared to during and posttechnology bubble period (1997-2007) for higher than median value reputable VCs. As the findings are robust even after controlling for business expansion and contraction cycles, this lend credence to the idea that during the technology bubble period, over 4 optimism in VCs and too much uncommitted capital chasing after too few quality deals have resulted in reputable VC investing in mediocre quality companies. By cross-testing the effects of different quartiles of VC reputation proxy rankings on the long-run survivorship of the companies, VC market share is found to be the most consistent and effective amongst the proposed VC reputation proxies in explaining its effect on the IPO companies' long-run survival.
Download or read book Reputation in Financial Intermediation written by Rajarishi Nahata and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Venture capital (VC) has emerged as one of the dominant forms of financing for technology intensive industries. Many start-ups have flourished tremendously after receiving VC funding and have gone on to become industry leaders. Prominent examples include Apple, Cisco, Intel, Genentech, and most recently Google. VCs are important financial intermediaries channeling capital from investors to risky, unproven start-ups that otherwise would face a much more uphill task trying to raise capital. What also sets them apart from other traditional financial intermediaries - banks, other institutional investors etc. - is their ability to provide expertise and other value-added services for start-ups' development. In addition to providing expertise and value-added services that generate economic benefits, VC firms aspire to be active long-term players in the industry. These motivations critically influence and depend on VCs' reputational capital, a precious resource in the competitive VC industry beset by considerable information asymmetries between VCs and their investors, as well as between VC firms and start-ups. That a firm's reputation is a valuable asset which can generate future economic rents for the firm and provide its customers valuable information on products and services is well recognized (Shapiro, 1983; Wilson, 1985). This study surveys the literature on the important role of venture capitalists particularly focusing on their reputation capital and its implications for companies.
Download or read book Venture Capital Redefined written by Darek Klonowski and published by Springer Nature. This book was released on 2021-10-25 with total page 295 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first comprehensive book that aims to understand how the novel coronavirus has impacted the venture capital industry. The analysis suggests that the industry has been undergoing profound changes. Specifically, the book assesses the short- and long-term impact of the economic, political, and social restrictions post COVID-response on different stakeholders in the venture capital ecosystem, including general partners (GPs), limited partners (LPs), and entrepreneurs. It also aims to answer the question whether current changes to the venture capital industry are likely to renew and promote its overhaul, or simply perpetuate its decline. The book will be of interest to students, academics, and researchers focusing on venture capital and private equity, entrepreneurial finance, entrepreneurship, and new venture creation as well as industry practitioners
Download or read book The Economic Impact of Venture Capital Backed Companies written by Nadine Ulrich and published by GRIN Verlag. This book was released on 2009-09-14 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2007 in the subject Business economics - Investment and Finance, grade: 1,3, Technical University of Munich (Lehrstuhl für Entrepreneurial Finance), language: English, abstract: Die Arbeit beschäftigt sich mit dem ökonomischen Einfluss von Venture Capital-finanzierten Unternehmen und betrachtet dabei im Detail drei Bereiche: Wachstum, Beschäftigung und Innovationen. Outline of the work The objective of this paper is the investigation of the economic impact of venture capital-backed companies. Therefore growth, employment and innovation are examined as the three most important spheres of influence. Beyond that, venture capital probably affects further areas of economy that are however not described within the scope of this work. This analysis should clarify the extent and kind of influence of venture-backed enterprises. It is based on various studies about the economic impact of venture capital, covering different research methods and geographic regions all over the world. The structure of the paper is shown in Fig. 1. The first chapter introduces the topic by describing the relevance of the subject and the structure of the work. Thereafter follows a definition of venture capital, a specification of the economic focus and a discussion of methodological issues. The chapters three to five constitute the main part and investigate the above-mentioned spheres, applying a three-staged examination method. The first section describes the respective topic and discusses relevant measures for the analysis. The second section inspects the development of venture capital-backed companies by looking at quantitative and qualitative aspects. The measures identified in the first section are chosen as quantitative indicators. The qualitative research focuses on the strongest influenced areas. The last section of the respective chapter assesses the economic importance of the topic, summarises the findings and determines the role of venture capitalists. Chapter six closes with a summary of the most important results and a further outlook.
Download or read book Reputation Capital written by Joachim Klewes and published by Springer Science & Business Media. This book was released on 2009-10-13 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: • ... release reputation bearers from the burden of being constantly mo- tored and reduce the likelihood of government or public supervision and control. • ... strengthen client trust, ease the recruitment and retention of capable employees and improve access to capital markets or attract investors. • ... legitimate positions of power and build up reserves of trust which - lowed companies and politicians – but also researchers and journalists – to put their issues on the public agenda, present them credibly and mould them in their own interests. But a fear of loss is not the only reason for the steadily increasing - portance of reputation in corporate management today (or more especially, in the minds of top management). Rather, the main reason is that corporate reputation has shifted from being an unquantifiable ‘soft’ factor to a me- urable indicator in the sense of management control. And it is a variable that is obviously relevant to a company’s performance: recent studies by the European Centre for Reputation Studies and the Ludwig-Maximilians- Universität of Munich compared the stock market performance of a port- lio of the top 25% of reputation leaders (based on regular reputation me- urements in the wider public) with that of the German DAX 30 stock m- ket index. The results show that a portfolio consisting of reputation leaders 1 outperformed the stock market index by up to 45% – and with less risk. Fig. 1. Performance of ‘reputation portfolios’ vs.
Download or read book Venture Capitalist Participation and the Performance of IPO Firms written by Georg Rindermann and published by Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften. This book was released on 2004 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates whether venture capitalists in Europe have a positive impact on the operating and long-run market performance of firms they bring public. To examine this issue a hand-collected international data set of venture- and non venture-backed IPOs at the French Nouveau Marché, German Neuer Markt, and British techMARK dating from 1996 to 1999 is used. The findings suggest that there are substantial variations in the experience and sophistication of venture capitalists. Moreover, venture-backed IPOs do not generally outperform non venture-backed issues, irrespective of the applied performance measure. Instead, merely the more experienced international venture capitalists appear to have positive effects on both the operating and market performance of portfolio firms. The overall results are interpreted as evidence for the heterogeneity of venture capitalists operating in the European market.
Download or read book Venture Capital Reputation Post IPO Performance and Corporate Governance written by C. N. V. Krishnan and published by . This book was released on 2011 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the association of a venture capital (VC) firm's reputation with the post-IPO long-run performance of its portfolio firms. We find that VC reputation, measured by the past market share of VC-backed IPOs, has significant positive associations with long-run firm performance measures. While more reputable VCs initially select better quality firms, more reputable VCs continue to be associated with superior long-run performance, even after controlling for VC selectivity. We find more reputable VCs exhibit more active post-IPO involvement in the corporate governance of their portfolio firms and this continued VC involvement positively influences post-IPO firm performance.
Download or read book Value Added by Venture Capital Firms written by Jens Ortgiese and published by Josef Eul Verlag GmbH. This book was released on 2007 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Confessions of a Venture Capitalist written by Ruthann Quindlen and published by Warner Books (NY). This book was released on 2000 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The woman who was an early champion of Microsoft and America Online, Ruthann Quindlen, unveils the names and faces, the deals and the dollars, and the vital role of venture capital in creating companies, jobs, and wealth for the 21st century." "Where do you fit in? Confessions of a Venture Capitalist helps you bypass the most common errors made by start-up entrepreneurs. And it provides everyone, businesspersons and casual readers alike, with an intimate, front-row understanding of how the venture capital economy and Silicon Valley are radically changing the world we all inhabit."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved
Download or read book Corporate Venture Capital written by Kevin McNally and published by Routledge. This book was released on 1997-07-10 with total page 349 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book addresses the lack of academic and practical research into corporate venturing by examining the role of this activity as both a form of large firm-small firm collaboration and as an alternative source of equity finance for small firms. These issues are explored through surveys of independent fund managers, coporate executives and technolo
Download or read book Take the Money and Run an Insider s Guide to Venture Capital written by Gerry Langeler and published by Lulu.com. This book was released on 2011-07-11 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is for entrepreneurs who want to realize their vision, want to build a major enterprise, want to change the world. To win, you need two things: cash and speed. You need to get the money and then run like crazy. To get the money, you may want to raise it from venture capital (VC) firms. But the reality is far fewer than 1 in 100 companies approaching VCs ever get to ""take the money."" So, the first section of this book provides a behind-the-scenes look at how VC firms work, and more importantly how they think. You'll get first-hand insight into what you can do to improve your chances and what to avoid that can doom your hopes. The second section of the book will help you ""run."" It covers almost every segment of start-up operations, from product development to financing to staffing to sales and marketing. Gerry Langeler's 30 years as a successful venture capitalist and entrepreneur who raised money from top VC firms, provides the secrets to help you achieve your dreams.
Download or read book Founder Turnover in Venture Capital Backed Start Up Companies written by Martin Heibel and published by Springer Science & Business Media. This book was released on 2009-02-14 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: Martin Heibel analyzes founder turnover in German venture capital backed start-up companies. He develops two unique data sets specifically assembled through an experiment and an online survey. His in-depth analyses cover antecedents and performance implications of founder turnover. They combine venture capitalists’ as well as entrepreneurs’ perspectives on founder turnover, and yield detailed insights into the interaction between financiers and founders.
Download or read book Which factors influence high startup valuations written by Christopher Weber and published by GRIN Verlag. This book was released on 2019-10-01 with total page 101 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2018 in the subject Business economics - Company formation, Business Plans, grade: 1,7, Otto Beisheim School of Management Vallendar, language: English, abstract: The author of the work aims to shed light on processes in the startup environment. The work provides a new and more comprehensive view on the valuation drivers of startups by including the dynamics of negotiation during the actual valuation process. The three areas that this work seeks to investigate are: What are the factors that impact the valuation of a startup, especially relating to startup unicorns? Which factors increase the likelihood that a highly valued startup is engaging in a down-round? Which factors are the most important valuation drivers of a startup in each stage of its development? The valuation of a startup results out of a highly complex interplay of different factors which can be assigned to the four dimensions valuation methods and down-rounds, the ecosystem, the startup, and the investor. The author iterviewed active startup investors and entrepreneurs and collected hands-on knowledge from professionals directly involved in the negotiation process.
Download or read book The Impact of Corporate Venture Capital written by Timo B. Poser and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: Timo B. Poser shows that Corporate Venture Capital offers a broad set of advantages, but has a limited impact on sustainable competitive advantage of the investing firm.
Download or read book The Holloway Guide to Raising Venture Capital written by Andy Sparks and published by Holloway, Inc.. This book was released on 2023-08-29 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: With input from over 60 entrepreneurs, investors, and legal experts, this in-depth resource is your companion as an entrepreneur. Filled with practical pitching advice, term sheet details, real-world scenarios, and pitfalls to avoid.
Download or read book Essays in Corporate Venture Capital written by Vladimir Ivanov Ivanov and published by . This book was released on 2004 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book From Value added VCs to Equity Crowdfunding Syndicates written by Louis Coppey and published by . This book was released on 2016 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: "If you look at the venture business, for an industry that funds innovation - it really doesn't have that much", declared Josh Kopelman, founding partner at First Round Capital, in 2013. Notwithstanding, observing the industry in the last decade, one can identify at least two evolutions. First, a new generation of VC firms, to which First Round Capital belongs, has emerged and is reinventing VC firms' traditional organization to offer additional services beyond investment capital and their partners' time. Second, equity crowdfunding, spearheaded by equity crowdfunding syndicates, now allows entrepreneurs to raise funds entirely online and has become an interesting alternative to traditional venture capital. This paper's first objective is to describe and evaluate the strategies embraced by these new types of value-added VC firms. The second objective is to review online syndicates' characteristics and their evolution since their inception 3 years ago. I first consider whether they can become credible competitors of VC firms and end with a few predictions regarding the space equity crowdfunding syndicates are likely to occupy. I show that the new emphasis placed on VC firms' value added services has empowered new entrants in the VC market, enabling them to break into the concentrated circle of the very few VC firms actually earning significant returns. Beyond the objective of improving their portfolio companies' operating performance, I show that VC firms embrace this strategy in order to 1) increase the size of their inbound deal flow, 2) improve the firm's brand and 3) provide General Partners with additional arguments to close competitive deals. In a second part, I argue that online syndicates could increasingly embrace the key success factors shared among successful venture capital firms. However, their lack of reputation may undermine their performance in the next venture capital cycle. I conclude that equity crowdfunding syndicates are primarily an interesting addition to the traditional early-stage industry, rather than a substitute for traditional VC firms. Lastly, I show how VC investors can take advantage of online syndicates to increase their firms' competitiveness.
