What Happed to Companies Backed by Venture Capital Following IPO?

Moez Khalfallah () and Jean-Michel Sahut
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Moez Khalfallah: Cergy Pontoise University
Jean-Michel Sahut: IPAG Business School

Chapter Chapter 6 in New Challenges in Entrepreneurship and Finance, 2015, pp 87-101 from Springer

Abstract: Abstract This paper examines changes in profitability of 146 Companies financed by Venture Capital (CVC) listed on the French market. The results show disappointing post-IPO profitability. The decline in performance ranges from 9.5 % to 32 % over a 2-year period following the launch on the stock exchange. It also appears that the decline in operating performance is less significant for CVC compared with non CVC over the same period. An analysis of this underperformance shows that CVC supported by reputed venture capital firms manage to limit the decline in operating performance compared to those supported by non-reputed venture capital firms.

Keywords: Venture Capital Firms (VCF); French Market; Benchmark Firms; Bubble Years; Rindermann (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-08888-4_6

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DOI: 10.1007/978-3-319-08888-4_6

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