Is the venture capital market liquid? Evidence from India

James Dominic and Arun Kumar Gopalaswamy

Global Finance Journal, 2019, vol. 41, issue C, 146-157

Abstract: This paper models investment duration in the Indian venture capital (VC) market, by industry and exit route. We examined 3416 investment and exit transactions in India during the period 2000–2017 and found that the probability of staying invested for more than ten years was 70%. Exit probabilities were low in most sectors. Investment duration was not positively associated with the investment valuation; rather, it was impossible to exit from the majority of investments because of the illiquidity of the VC market.

Keywords: Venture capital; Investment duration; Market liquidity; VC exit (search for similar items in EconPapers)
JEL-codes: G24 G28 G38 M13 M16 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:41:y:2019:i:c:p:146-157

DOI: 10.1016/j.gfj.2019.04.002

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