Abstract
In this study, we argue that successful exit outcomes (Trade Sales (TS) or IPO) from VCs' cross-border investments are influenced by time-since-first-funding-received (TSFFR) by the venture. As TSFFR increases, the venture reveals more information about its potential, influencing the value that trade and IPO buyers place on it. This, in turn, influences whether VCs exit via a TS or an IPO. Analyzing 1841 cross-border of UC fund-venture pairs, our findings suggest that TSFFR has an inverted-U-shaped association with the probability of TS. The strength of the US VCs in the cross-border syndicate interacts with this association, reducing the probability of TS exit for lower levels of TSFFR and increasing it for higher levels.
Original language | English (US) |
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Article number | 103758 |
Journal | International Review of Financial Analysis |
Volume | 96 |
DOIs | |
State | Published - Nov 2024 |
Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2024
Keywords
- Cross-border
- IPO
- Time-since-first-funding-received
- Trade sales
- VC funds
- VC syndicates