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

Diego Useche and Sophie Pommet ()
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Sophie Pommet: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur

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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 (MandAs), while distinguishing between European MandAs and extra-EU MandAs 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 MandAs. In contrast, the presence of CVC investors is related to a higher likelihood of delisting through extra-EU MandAs.

Keywords: Corporate venture capital; Bank-affiliated venture capital; High-tech firms; Firm failure; Cross-border MandAs; Independent venture capital; IPO survivability (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-cse and nep-sbm
Note: View the original document on HAL open archive server: https://univ-rennes.hal.science/hal-02797121
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Published in Small Business Economics, 2021, 57, pp.1339-1359. ⟨10.1007/s11187-020-00351-x⟩

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Journal Article: Where do we go? VC firm heterogeneity and the exit routes of newly listed high-tech firms (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02797121

DOI: 10.1007/s11187-020-00351-x

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