| Author: | Gompers, P. (et al.) |
| Title: | Venture capital investment cycles: the impact of public markets |
| Journal: | Journal of Financial Economics
2008 : JAN, VOL. 87:1, p. 1-23 |
| Index terms: | business cycles initial public offerings venture capital volatility |
| Language: | eng |
| Abstract: | This article examines how changes in public market signals affected venture capital investing between 1975 and 1998. It is found that venture capitalists with the most industry experience increase their investments the most when public market signals become more favorable. Their reaction to an increase is greater than the reaction of venture capital organizations with relatively little industry experience and those with considerable experience but in other industries. The increase in investment rates does not affect the success of these transactions adversely to a significant extent. |
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