Returns to Venture Capital

Venture Capital: Investment Strategies, Structures, and Policies

Volumn , Issue , 2012, Pages 407-437

  Wright, Mike ^a   Chopraa, Riya ^a  

^a UNIVERSITY OF NOTTINGHAM   (United Kingdom)

Author keywords

Capital profits; Fund manager; Private equity market; Transaction costs; Venture capital (VC) investments

Indexed keywords

EID: 84886710270     PISSN: None     EISSN: None     Source Type: Book    
DOI: 10.1002/9781118266908.ch19     Document Type: Chapter

References (62)

1. Alemany, L., and J. Marti. 2005. Unbiased estimation of economic impact of venture capital backed firms. Working Paper. ESADE Business School.
2. Audretsch, D., and E. Lehmann. 2004. Financing high tech growth:The role of banks and venture capitalists. Schmalenbach Economic Review 56:340-357.
3. Baden-Fuller, C., A. Dean, P. McNamara, and B. Hilliard. 2006. Raising the returns to venture finance. Journal of Business Venturing , 21:265-285.
4. Bertoni, F., M. Colombo, and L. Grilli. 2008. Venture capital financing and the growth of new technology based firms. WP Politechnico di Milano.
5. Botazzi, L., and M. Da Rin. 2002. Venture capital in Europe and the financing of innovative companies. Economic Policy 17:229-269.
6. Bottazzi, L., M. Da Rin, and T. Hellmann. Forthcoming. Who are the active investors? Evidence from venture capital. Journal of Financial Economics.
7. Brophy, D. J., and M. Guthner. 1988. Publicly traded venture capital funds:Implications for "funds of funds" investors. Journal of Business Venturing 3:187-206.
8. Bruining, H., and M. Wright. 2008. Private equity and management buyouts. Cheltenham, UK:Edward Elgar
9. Burgel, O., et al. 2000. Internationalisation of high tech start-ups and fast growth:Evidence from Germany and UK. DP 00-35. Centre for European Economic Research, Mannheim.
10. BVCA. 2006. The economic impact ofprivate equity in the UK. London:BVCA
11. Bygrave, W. 1994. Rates of return from venture capital. In Realizing Investment Value , ed. W. Bygrave, M. Hay, and J. Peeters. London:Pitman.
12. Cochrane, J. H. 2005. The risk and return of venture capital. Journal of Financial Economics 75:9-11.
13. Colombo, M., and L. Grilli. 2008. On growth drivers of high tech start-ups:Exploring the role of founders' human capital and venture capital. WP Politechnico di Milano.
14. Cumming, D., and U. Walz. 2007. Private equity returns and disclosure around the world. Mimeo. Retrieved from SSRN:http://ssrn.com/abstract=514105
15. Davila, A., G. Foster, and M. Gupta. 2003. Venture capital financing and the growth of start-up firms. Journal of Business Venturing 18:689-708.
16. DeClerq, D., and D. Dimov. 2008. Internal knowledge development and external knowledge access in venture capital investment performance. Journal of Management Studies 45:585-612.
17. Dimov, D., and D. Shepherd. 2005. Human capital theory and venture capital firms:Exploring home runs and strike outs. Journal of Business Venturing 20:1-22.
18. Engel, D., and M. Keilbach. 2007. Firm level implications of early stage venture capital investment:An empirical investigation. Journal of Empirical Finance 14:150-167.
19. EVCA. 2005. International private equity and venture capital valuation guidelines. Brussels:EVCA
20. George, G., J. Wiklund, and S. Zahra. 2005. Ownership and the internationalization of small firms. Journal of Management 31:210-233.
21. Gompers, P., and J. Lerner. 1999. An analysis of compensation in the U.S. venture capital partnership. Journal of Financial Economics 51:3-44.
22. Gompers, P., and J. Lerner. 2000. Money chasing deals? The impact of fund inflows on private equity valuations. Journal of Financial Economics 55:281-325.
23. Gompers, P., et al. 2005. Venture capital investment cycles:The role of experience and specialization. Journal of Financial Economics 81:649-679.
24. Hege, U., F. Palomino, and A. Schwienbacher. 2004. Determinants of venture capital performance:Europe and the United States. WP HEC Paris and University of Amsterdam.
25. Heirman, A., and B. Clarysse. 2005. The imprinting effect of initial resources and market strategy on the early growth path of start-ups. Working Paper Series. Ghent University.
26. Hellmann, T., and M. Puri. 2000. The interaction between product market and financing strategy:The role of venture capital. Review of Financial Studies 13:959-984.
27. Hochberg, Y., A. Ljungqvist, and Y. Lu. 2007. Whom you know matters:Venture capital networks and investment performance. Journal of Finance 62:251-302.
28. Huntsman, B., and J. Hoban. 1980. Investment in new enterprise:Some empirical observations on risk, return and market structure. Financial Management (summer):44-51.
29. Hwang, M., J. Quigley, and S. Woodward. 2005. An index for venture capital, 1987-2003. Contributions to Economic Analysis and Policy 4:1-43.
30. Jain, B., and O. Kini. 1995. Venture capitalists' participation and the post-issue operating performance of IPO firms. Managerial and Decision Economics. 6:593-606.
31. Jones, C., and M. Rhodes-Kropf. 2003. The price of diversifiable risk in venture capital and private equity. Mimeo. Columbia Business School.
32. Kaplan, S., and A. Schoar. 2005. Private equity performance:Returns, persistence and capital flows. Journal of Finance 60 4:1791-1823.
33. Kaplan, S., and S., Per. 2009. Leveraged buyouts and private equity. Journal of Economic Perspectives 23:121-146.
34. Karsai, J., et al. 1999. Venture capital in transition economies-the cases of Hungary, Poland and Slovakia. In Management buyouts and venture capital into the next millennium , ed. M. Wright and K. Robbie. Cheltenham, UK:Edward Elgar.
35. Kleiman, R., and J. Shulman. 1992. The risk-return attributes of publicly traded venture capital:Implications for investors and public policy. Journal of Business Venturing 7:195-208.
36. Knockaert, M., et al. 2006. Do human capital and fund characteristics drive follow-up behavior of early stage high-tech VCs? International Journal of Technology Management 34:7-27.
37. Lee, C., K. Lee, and J. Pennings. 2001. Internal capabilities, external networks, and performance:A study on technology-based ventures. Strategic Management Journal , 22:615-640.
38. Lerner, J., and A. Schoar. 2005. Does legal enforcement affect financial transactions? The contractual channel in private equity. Quarterly Journal of Economics 120:223-246.
39. Lerner, J., and W. Wan. 2007. Smart institutions, foolish choices:The limited partner performance puzzle. Journal of Finance 62(2):731-764.
40. Ljungqvist, A., and M. Richardson. 2003a. The cash flow, return and risk characteristics of private equity. NBER Working paper 9495.
41. Ljungqvist, A., and M. Richardson. 2003b. The investment behaviour of private equity fund managers. Working Paper. New York University.
42. Lockett, A., G. Murray, and M. Wright. 2002. Do UK venture capitalists still have a bias against investment in new technology firms? Research Policy 31:1009-1030.
43. Lockett, A., et al. 2008. The export intensity of venture capital backed companies. Small Business Economics 31:39-58.
44. Manigart, S., and W. Van Hyfte. 1999. Post investment evolution of VC backed companies. In Frontiers of entrepreneurship research, ed. P. Reynolds, W. Bygrave, S. Manigart, C. Mason, G. Meyer, H. Sapienza, K. Shaver. 419-432 Wellesley, MA:Babson College.
45. Manigart S., P. Joos, and D. De Vos. 1994. The performance of publicly traded European venture capital companies. Journal of Small Business Finance 3:111-125.
46. Manigart, S., et al. 1997. Venture capitalists' appraisal of investment projects:An empirical European study. Entrepreneurship Theory and Practice 21:29-44.
47. Manigart, S., et al. 2002. Determinants of required returns in venture capital investments:A five-country study. Journal of Business Venturing , 17:291-312.
48. Metrick, A., and A. Yasuda. 2007. The economics of private equity funds. Mimeo. Wharton School.
49. Phalippou, L. 2007. Investing in private equity funds:A Survey. Retrieved from http://ssrn.com/abstract=980243
50. Phalippou, L., and O. Gottschalg. Forthcoming. Performance of private equity funds:Another puzzle? Review of Financial Studies.
51. Robbie, K., B. Chiplin, and M. Wright. 1997. The monitoring of venture capital firms. Entrepreneurship Theory and Practice , 21:9-28.
52. Sorensen, M. 2007. How smart is smart money? A two-sided matching model of venture capital. Journal of Finance 62:2725-2762.
53. Wright, M. 2007. Private equity and management buy-outs. In Handbook of research on venture capital , ed. H. Landstrom. Cheltenham, UK:Edward Elgar.
54. Wright, B. et al. 2006. University spin-out companies and venture capital. Research Policy 35(4):481-501.
55. Wright, M. and A., Lockett 2003. The structure and management of alliances:Syndication in the venture capital industry. Journal of Management Studies 40:2073-2104.
56. Wright, S. et al. 2004. Venture capital investors, institutional context, valuation and information:U.S., Europe and Asia. Journal of International Entrepreneurship 2:305-326.
57. Wright, M., S. Pruthi, and A. Lockett. 2005. International venture capital research:From crosscountry comparisons to crossing borders. International Journal of Management Reviews 7(3):1-31.
58. Wright, M., and K. Robbie. 1996. Venture capitalists, unquoted investment appraisal and the role of accounting information. Accounting and Business Research 26:153-170.
59. Wright, M., and K. Robbie. 1998. Venture capital and private equity:A review and synthesis. Journal of Business Finance and Accounting 25(5 & 6:521-570.
60. Wright, M., H. Sapienza, and L. Busenitz. 2003. Venture capital , vols. 1-3. Cheltenham, UK:Edward Elgar.
61. Zahra, S., D. Neubaum, and L. Naldi. 2007. The effects of ownership and governance on SMEs' international knowledge-based resources. Small Business Economics 29:309-327.
62. Zarutskie, R. Forthcoming. The role of top management team human capital in venture capital markets:Evidence from first-time funds. Journal of Business Venturing.