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Where do we go? VC firm heterogeneity and the exit routes of newly listed high-tech firms.

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Authors: Useche, Diego1 (AUTHOR) diego.useche@univ-rennes1.fr, Pommet, Sophie2 (AUTHOR)
Source: Small Business Economics. Oct2021, Vol. 57 Issue 3, p1339-1359. 21p. 4 Charts, 2 Graphs.
Subject Terms: *Venture capital, *Going public (Securities), *Bank mergers, *Business failures, *Stock exchanges, *Business enterprises, Heterogeneity
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 (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. [ABSTRACT FROM AUTHOR]
Database: Entrepreneurial Studies Source
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PubType: Academic Journal
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  Data: <searchLink fieldCode="AR" term="%22Useche%2C+Diego%22">Useche, Diego</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> diego.useche@univ-rennes1.fr</i><br /><searchLink fieldCode="AR" term="%22Pommet%2C+Sophie%22">Pommet, Sophie</searchLink><relatesTo>2</relatesTo> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Small+Business+Economics%22">Small Business Economics</searchLink>. Oct2021, Vol. 57 Issue 3, p1339-1359. 21p. 4 Charts, 2 Graphs.
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  Data: *<searchLink fieldCode="DE" term="%22Venture+capital%22">Venture capital</searchLink><br />*<searchLink fieldCode="DE" term="%22Going+public+%28Securities%29%22">Going public (Securities)</searchLink><br />*<searchLink fieldCode="DE" term="%22Bank+mergers%22">Bank mergers</searchLink><br />*<searchLink fieldCode="DE" term="%22Business+failures%22">Business failures</searchLink><br />*<searchLink fieldCode="DE" term="%22Stock+exchanges%22">Stock exchanges</searchLink><br />*<searchLink fieldCode="DE" term="%22Business+enterprises%22">Business enterprises</searchLink><br /><searchLink fieldCode="DE" term="%22Heterogeneity%22">Heterogeneity</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: 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. [ABSTRACT FROM AUTHOR]
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      – Type: doi
        Value: 10.1007/s11187-020-00351-x
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      – Code: eng
        Text: English
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        PageCount: 21
        StartPage: 1339
    Subjects:
      – SubjectFull: Venture capital
        Type: general
      – SubjectFull: Going public (Securities)
        Type: general
      – SubjectFull: Bank mergers
        Type: general
      – SubjectFull: Business failures
        Type: general
      – SubjectFull: Stock exchanges
        Type: general
      – SubjectFull: Business enterprises
        Type: general
      – SubjectFull: Heterogeneity
        Type: general
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      – TitleFull: Where do we go? VC firm heterogeneity and the exit routes of newly listed high-tech firms.
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            NameFull: Useche, Diego
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            NameFull: Pommet, Sophie
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            – D: 01
              M: 10
              Text: Oct2021
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              Y: 2021
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              Value: 57
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            – TitleFull: Small Business Economics
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