Abstract
The literature on venture capital has identified three main reasons for why IPOs could play an important role in the venture capital cycle. These are:
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1.
IPOs on average generate significantly higher ROIs than other divestment venues,
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2.
entrepreneurs value the possibility to regain control over their firm via an IPO, and
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3.
IPOs signal that a given venture capital manager is successful and thus help raise follow-on funds.
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© 2006 Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden
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(2006). IPOs and venture capital. In: Public Policy for Venture Capital. DUV. https://doi.org/10.1007/978-3-8350-9048-4_6
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DOI: https://doi.org/10.1007/978-3-8350-9048-4_6
Publisher Name: DUV
Print ISBN: 978-3-8350-0217-3
Online ISBN: 978-3-8350-9048-4
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