Determinants of required returns in venture capital investments: A five-country study
Manigart, Sophie De Waele, K. Wright, Mike Robbie, K.
Manigart, Sophie
De Waele, K.
Wright, Mike
Robbie, K.
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2002
Journal
Journal of Business Venturing
Book
Publication Volume
17
Publication Issue
4
Publication Begin page
291
Publication End page
312
Publication Number of pages
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Abstract
Using 2 complementary theoretical perspectives, this paper develops hypotheses regarding the determinants of the return required by venture capitalists and tests this on a sample of over 200 venture capital companies (VCCs) located in 5 countries. It finds that early-stage specialists required a significantly higher return than other VCCs when investing in later-stage ventures. It also finds that acquisition/buyout specialists require a significantly lower return than other VCCs when investing in expansion companies.
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Keywords
Corporate Finance