Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114698
Authors: 
Busenitz, Lowell W.
Fiet, James O.
Year of Publication: 
1996
Citation: 
[Journal:] Journal of Entrepreneurial and Small Business Finance [ISSN:] 1057-2287 [Volume:] 5 [Year:] 1996 [Issue:] 2 [Pages:] 97-114
Abstract: 
This study examines the relationship between venture capitalist actions and the eventual disposition of a venture through an IPO, which is the most profitable exit strategy. The actions included in this study were ( 1) altering the amount of their investment; ( 2) securing a concentrated equity position; ( 3) diversifying their syndicate investments; and ( 4) introducing their investees to other sources of financing. After five years, this study found a positive relationship between IPO exit and ( 1) the amount of their investment; and ( 2) the diversification of their VC syndicate. However, it found only mixed results for ( 1) venture capitalist concentrated equity position; and ( 2) introductions to other sources of funding. Finally, implications for future research are discussed.
Subjects: 
Early-Stage Ventures
Startup
Valuation
Exit
Disposition
JEL: 
G24
G32
G12
Document Type: 
Article

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