New insights into venture capitalists' activity: : IPO and time-to-exit forecast as antecedents of their post-investment involvement

• Autores: Violetta Gerasymenko, Jonathan D. Arthurs
• Localización: Journal of Business Venturing, ISSN-e 1873-2003, Vol. 29, Nº. 3, 2014, págs. 405-420
• Idioma: inglés
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• Resumen

  • We examine how VCFs' forecast of an IPO exit affects their breadth of advising and the likelihood of founder�CEO replacement shortly after they invest in a new venture. Moreover, we examine how the expected time-to-exit moderates these relationships. Our findings show that the likelihood of founder�CEO replacement upon receiving venture capital funding is significantly greater if a VCF perceives this company as a potential IPO as opposed to a trade sale, and this likelihood increases if the forecasted time-to-exit is short. We also illustrate how the breadth of advice varies as a function of the forecasted IPO and time-to-exit.