Venturing beyond the IPO: Financing of Newly Public Firms by Venture Capitalists

• 成果类型: Article
• 署名作者: Iliev, Peter; Lowry, Michelle
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Drexel University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12879
• 发表日期: 2020
• 页码: 1527-1577
• 关键词: INVESTOR IDENTITY MATTER; Contract terms; Hedge funds; INFORMATION; constraints; returns; MARKET; investments; performance; persistence

摘要

Contrary to conventional wisdom, we document that approximately 15% of venture capitalist (VC)-backed firms raise additional capital from VCs in the five years after going public. We propose two explanations for why firms revert to VC financing post-IPO (initial public offering). First, we hypothesize that VC participation in post-IPO financing represents an efficient solution to informational problems that would otherwise constrain firms' abilities to exploit value-increasing investments. Analyses of firm and VC characteristics, together with the finding that these investments are value-increasing for both VCs and the underlying companies, support this hypothesis. We find no support for the alternative that agency conflicts motivate these investments.