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Venture Capitalists’ Exit Strategies under Information Asymmetry

Evidence from the US Venture Capital Market

  • Authors
  • Matthias Eckermann

Table of contents

  1. Front Matter
    Pages I-XVII
  2. Pages 1-20
  3. Pages 63-86
  4. Pages 133-164
  5. Pages 165-232
  6. Back Matter
    Pages 249-287

About this book

Introduction

Venture capitalists (VCs) fund ventures with the aim of reaping a capital gain upon exit. Research has identified information asymmetry between inside investors and follow-on investors as a major source of friction. It is thus in the interest of VCs to reduce information asymmetry at exit.

Matthias Eckermann analyzes how VCs integrate information efficiency considerations into their exit strategies. He shows that VCs adopt specific strategies to cope with information gaps upon exit in terms of timing, exit vehicles and promotion efforts. On this basis he develops a framework to help VCs to improve profitability through decisive exit strategies.

Keywords

Acquisition Exit IPO Information asymmetry Investment Investments Venture Capital

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-8350-9018-7
  • Copyright Information Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden 2006
  • Publisher Name DUV
  • eBook Packages Business and Economics
  • Print ISBN 978-3-8350-0126-8
  • Online ISBN 978-3-8350-9018-7
  • Buy this book on publisher's site