The Liquidation Dilemma of Money Losing Investments - The Impact of Investment Experience and Window Dressing of Private Equity and Venture Capital Funds

2007 ◽  
Author(s):  
Philipp Krohmer
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Window Dressing ◽  
Investment Experience ◽  
The Impact

scholarly journals Determinantes do Sucesso dos Investimentos de Private Equity e Venture Capital no Brasil

2011 ◽  
Vol 9 (2) ◽  
pp. 189 ◽  
Author(s):  
Eduardo Madureira Rodrigues Siqueira ◽  
Antonio Gledson De Carvalho ◽  
Humberto Gallucci Netto
Keyword(s):  
High Risk ◽  
Venture Capital ◽  
Late Stage ◽  
Private Equity ◽  
Factors Influencing ◽  
Foreign Origin ◽  
Investment Experience ◽  
A Company ◽  
Measures Of Performance

This paper investigates the determinants of performance of the investments of private equity and venture capital (PEVC) funds in Brazil. We use two unique databases: the First Brazilian Private Equity and Venture Capital Census and the Guia-GVcepe Endeavor, with information on this industry for the period 1999 to 2007. As measures of performance we use the percentage and number of exits through IPO, acquisition by a company or by another investor. Our results indicate that the factors influencing the performance of investments are: size of the fund, number of investments, the practice of co-investment, experience and foreign origin of the managing organization, focus on late stage, intensity of contact between managers and portfolio companies and the number of seats on the boards of the invested companies. The number of successes grows with the number of investments at a declining rate. This can indicate 1) a limit to the ability of managers or 2) that a large number of investments allows for greater diversification of risk, directing investments to companies of high risk but with a high upside.

The Politics of the Sharing Economy

2020 ◽  
pp. 21-36
Author(s):  
David Murillo
Keyword(s):  
Venture Capital ◽  
Business Model ◽  
Private Equity ◽  
Sharing Economy ◽  
Moving Target ◽  
Definition Of ◽  
The Impact ◽  
Platform Economy ◽  
Academic Debate

The current academic debate on the sharing economy (SE) seems to embrace three main discussions: its definition, its effects, and the role of regulation. A neglected topic here seems to be analyzing the specific implications of the changing nature of these firms boosted by private equity and venture capital. As the author points out, we need to analyze not only the impact of a changing business model but, specifically, how stakeholders, cities, and regulators should approach this moving target now called SE. In the following sections the author departs from a traditional definition of the sharing economy to start building the case for treating the SE at large as an epiphenomenon of the platform economy, and as a temporary condition based on a moveable business model. The chapter closes by introducing the regulatory hurdles that come associated with the previous and mapping out its different futures.

scholarly journals How Venture Capital Influences High-tech Enterprises’ IPO: External Factors versus Internal Growth

CONVERTER ◽  
2021 ◽  
pp. 84-99
Author(s):  
Hui Wu, Yu Wang
Keyword(s):  
Venture Capital ◽  
Manufacturing Sector ◽  
High Tech ◽  
Symmetric Information ◽  
Corporate Growth ◽  
Matching Degree ◽  
Investment Experience ◽  
Traditional Manufacturing ◽  
The Impact ◽  
The Empirical Analysis

There is huge potential for China to transform and upgrade its traditional manufacturing sector, and high-tech enterprises in manufacturing industries stand out. This study contributes to the literature on how venture capital affects technology-based Enterprises’ IPO by evaluating the characters between the two parties.  According to the symmetric information theory, certification theory and enterprise property rights theory, the first round of risk financing enterprises from 2010 to 2019 is taken as a research sample to empirically analyze the impact of venture capital and corporate growth on firm listing events. The results show that the investment experience of venture capital institutions, when matched appropriately to firms’ specific growth, will facilitate and accelerate the IPO process. Thus the matching degree between the two are significantly positively related to the company's IPO. Under the premise of low growth of the company, venture capital has a significant impact on the listing of the company. As the growth of the company increases, the impact of venture capital on the listing of the company is gradually reduced. Venture capital institutions with overseas backgrounds are more inclined to promote the IPO of invested international companies. Finally, we discuss the implications based on the results of the empirical analysis, and make suggestions for venture capital institutions and companies.

Cycle on the Warsaw Stock Exchange and the level of underpricing of venture capital and private equity funds over 2000-2013

2017 ◽  
Vol 18 (1) ◽  
pp. 0-0
Author(s):  
Piotr Zasępa
Keyword(s):  
Venture Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
Stock Exchange ◽  
Development Fund ◽  
Public Market ◽  
Equity Funds ◽  
Warsaw Stock Exchange ◽  
Private Equity Funds ◽  
The Impact

Investments of venture capital and private equity funds are made in young fast growing companies whose founders are characterized by a lack of capital for their development. Fund investment cycle is assumed to follow the process of divestment after a period of rapid growth and dynamic growth of the company. One of the methods used willingly completion of the investment by the funds is to put the company on the stock exchange. It is quite a long and expensive process, however, that the valuation of the fund may obtain a public market is often the highest possible. The process has, however, affected by the condition of the public market and current trends in the market for initial public offering. This is also reflected in the so-called underpricing of the offer or the difference between the opening and closing of the first day of trading of the company. This article aims to analyze the impact of trends on the stock exchange on the level of underestimation of the value of the transaction IPO on the Warsaw Stock Exchange in the period 2000-2013.

scholarly journals Optimization of the System of Monitoring the Effectiveness of Venture Investments

2019 ◽  
Vol 8 (4) ◽  
pp. 2145-2150
Keyword(s):  
Research And Development ◽  
Venture Capital ◽  
Private Equity ◽  
Numerical Data ◽  
Advanced Manufacturing Technologies ◽  
Innovative Products ◽  
Venture Capital Firms ◽  
Manufacturing Technologies ◽  
High Level ◽  
The Impact

The paper discusses real examples of venture capital firms that have reached a high level, as well as start-ups that have not yet managed to become mature companies. The paper presents statistical data on venture investments in the form of tables and graphs for clarity and simplification of the perception of numerical data. The process of evaluating venture capital enterprises is described, which allows you to decide to invest money in a project or abandon such a decision. In the course of the research, scientific, comprehensive literature, periodical informational publications, and Internet resources of various types were used: websites of venture funds, Internet blogs of famous business angels, research articles on venture investment. The choice of diverse literature made it possible to approach the questions of research critically, which helped to ensure an independent assessment. Besides, scientific calculations were used from related fields - marketing, economic psychology, management, which allowed us to consider the topic from different angles, illuminating the subject and object of research from new perspectives. The economic and mathematical model for assessing the impact of venture network actors on the commercialization of innovative products at the regional level consists of the following indicators: advanced manufacturing technologies used; volume of innovative goods, works, services; the number of personnel engaged in research and development; grant of patents; amount of investment; domestic current expenditure on research and development; share of investments in 1 private equity and venture capital fund; share of expenses of the first organization for research and development.

Does a Venture Capital Market Exist in the Countries of Former Yugoslavia?

2017 ◽  
Vol 1 (2) ◽  
pp. 197
Author(s):  
Marija Simic Saric
Keyword(s):  
Economic Growth ◽  
Venture Capital ◽  
Capital Market ◽  
Private Equity ◽  
Free Market ◽  
Former Yugoslavia ◽  
Capital Investments ◽  
The World ◽  
The Impact ◽  
Venture Capital Investments

<p>Venture capital investments spread all over the world during the last few decades. Until then, they were considered only as an American phenomenon. Countries worldwide are interested in attracting venture capital investments because of their undisputable effects on the economy. The effects of the investments are visible through the impact on innovation, creation of new companies, jobs, economic growth, corporate governance and etc.</p><p>Venture capital is a subset of Private equity focused on start-up companies and companies having difficulties in attracting necessary capital. It represents an equity investment made for the launch, early development, or expansion of a business.</p><p>The countries of former Yugoslavia (Croatia, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia - FYROM, Montenegro, Slovenia and Serbia) are part of the Central and Eastern Europe countries and represent relatively a new market for venture capitalists. They moved from the planned economies to a free market system in the 90s of 20 century. As well as other countries in the World, these countries are also interested in attracting venture capital because of the proven impact on economic growth. Despite the presence of Venture capital and Private equity funds in this region for more than twenty years, the venture capital and private equity market in the countries of former Yugoslavia is underdeveloped compared to other countries of CEE. Indeed, the venture capital investments are so small for some countries of former Yugoslavia that the data about venture capital investment are published jointly.</p><p> </p><p>The objective of this paper is to examine and analyze the development of Venture Capital market in countries o former Yugoslavia. The research is both qualitative and quantitative, and involves an identification, analysis and comparison of PE/VC investments data for selected countries. The time frame for this research is between 2007 and 2014. The total volume of venture capital investments per year, the number of companies invested and the ratio of PE investments to the gross domestic product (GDP) will be used to demonstrate the existence of the venture capital market in countries of former Yugoslavia. The data necessary for the current research were taken from the yearbook of EVCA/PEREP Analytics for 2014 for Baltics and Ex-Y. „PEREP Analytics” is a centralized, non-commercial pan-European private equity database. The „PEREP Analytics” statistics platform monitors the development of private equity and venture capital in 25 European countries.</p>

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