• Asian Journal of Innovation and Policy
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• 제7권3호
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• pp.534-563
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• 2018

Venture Capital Firms (VCs) encounter severe information asymmetry risks at almost every stage in their investment lifecycle. This paper explores the agency risks arising from information asymmetry during the stage of exits by VCs from the funded companies in their portfolio and how that impacts the incidence of specific types of type of exits (IPOs/M&As). In this empirical study, by using the data on IPO and M&A exits from venture capital-funded companies, we show how the ability of prospective buyers to better resolve agency risks is directly correlated with the incidence of the above exit types. Using the technique of logistic regression, we demonstrate that factors such as syndication, specialization focus of the VC firm (in terms of stage and sector) and the level of its social capital (proxied by its age and experience) drive the success rate of exits. This is one of first studies in context of exits from VC funded companies in the Indian context.

• Asian Journal of Innovation and Policy
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• 제7권1호
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• pp.150-177
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• 2018

We review two specific risk management strategies of venture capitalists (VCs): deal syndication and domain specialization with respect to their explicit role in adjudging and managing the overall magnitude of information asymmetry risks. These are analyzed for three distinct categories of VC firms as classified by their funding stage focus (early vs. late), ownership type (foreign vs. domestic) and the human capital composition of the core VC team (entrepreneurial vs. investor). The analysis is based on both secondary data and primary data for active 72 VC firms in India. Syndication is moderately important for entrepreneurial VC firms, but not at all important for early-stage focused and foreign VC firms. This finding is distinctly different from what has been conventionally observed in the literature. Among the various arenas of domain specialization, high-technology focus is important for all segments of VC firms. In the context of investment-stage focus, foreign VC firms exhibit growth-stage specialization, while entrepreneurial VC firms concentrate on earlier investment stages.

• 기업가정신과 벤처연구
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• 제21권1호
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• pp.43-59
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• 2018

본 연구는 벤처캐피탈 신디케이트의 다양성과 그 신디케이트가 지원하는 벤처 기업의 IPO 사이의 관계에 대해 조사하였다. 구체적으로는 Harrison and Klein의 다양성에 대한 세 가지 분류(Separation, Variety, and Disparity)를 기반으로 하여, 벤처캐피탈 신디케이트에 적용되는 세 가지 종류의 다양성(Capacity diversity, Expertise diversity, Network diversity)을 제시한 뒤, 각 다양성이 성과에 미치는 효과를 분석하였다. 이를 검증하기 위하여 6,268개의 벤처캐피탈에 의한 1,127건의 벤처캐피탈 신디케이트 투자를 2단계 최소 자승법을 통하여 분석 한 결과, 제시된 가설 모두를 유의미하게 지지하는 것으로 나타났다. 세 다양성 중에서, Capacity다양성의 경우 성과를 감소시키지만, Expertise 다양성과 Network 다양성은 성과를 향상시키는 것으로 드러났다.