Initial Public Offering and Financing of Biotechnology Start-ups: Evidence from Japan
Yuji Honjo and
No 15-20, IIR Working Paper from Institute of Innovation Research, Hitotsubashi University
This paper explores the initial public offering (IPO) and financing of biotechnology start-ups in Japan. Using a unique data set, we find that biotechnology start-ups initially backed by venture capital (VC) firms and those originating from universities are more likely to go public within a shorter period. Moreover, we examine whether two investment methods used by VC firms?staged financing and syndication?affect the market value of equity at the IPO. The results reveal that these methods do not create a higher value of biotechnology start-ups at the IPO. Furthermore, we provide evidence that the timing of IPOs does not depend on market conditions in the biotechnology industry, whereas the market value of equity tends to depend on market conditions.
Keywords: Biotechnology; Initial public offering; Market value; Staged financing; Start-up; Syndication (search for similar items in EconPapers)
JEL-codes: G32 M13 L65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-ent and nep-ino
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Journal Article: Initial public offering and financing of biotechnology start-ups: Evidence from Japan (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:iirwps:15-20
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