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Article
Venture Capital and Firm Performance Over the Long-Run: Evidence from High-Tech IPOs in the United States
The Journal of Entrepreneurial Finance
  • James R. Brown, Montana State University
Abstract
Despite widespread interest in the key role that venture capital plays in financing young, high-tech firms, little is known about the relative performance of venture-backed firms over the long-run. Using data from the U.S. high-tech sector, this paper examines the performance and financing of venture- and non-venture-backed firms during the decade following their IPO. Venture-backed firms survive longer, grow faster, are more R&D intensive, have generally superior operating performance, raise more external equity, and have a greater cumulative impact on the U.S. high-tech sector. These findings suggest that the true legacy of venture capital finance extends well beyond the IPO.
Publication Date
12-2005
JEL Codes
G24, M13
Keywords
  • Venture Capital,
  • Initial Public Offering,
  • IPO,
  • High-Tech
Citation Information
James R. Brown. "Venture Capital and Firm Performance Over the Long-Run: Evidence from High-Tech IPOs in the United States" (2005) p. 1 - 33
Available at: http://works.bepress.com/james-brown/1/