The Investment Style Drift Puzzle and Risk-Taking in Venture Capital

Koenig, Lukas; Burghof, Hans‐Peter

doi:10.2139/ssrn.3797515

Cited by 3 publications

(3 citation statements)

References 47 publications

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“…The change of the valuation coefficient is between −0.2 and 1.6, indicating that the centrality of the social network of venture capital institutions is beneficial to increase the successful launch rate of the investment portfolio. This result is basically consistent with the research results of Koenig and Burghof (2021) on the relationship between venture capital institutions and portfolio launch rates. On this basis, it is concluded that the factor that affects the successful launch rate of the investment portfolio is the centrality of the social network [37].…”

Section: Robustness Testsupporting

confidence: 92%

“…This result is basically consistent with the research results of Koenig and Burghof (2021) on the relationship between venture capital institutions and portfolio launch rates. On this basis, it is concluded that the factor that affects the successful launch rate of the investment portfolio is the centrality of the social network [37]. In the end, the assumption that was made in the previous article holds true here.…”

Section: Robustness Testsupporting

confidence: 92%

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The Internal Connection Analysis of Information Sharing and Investment Performance in the Venture Capital Network Community

Feng

Sun

Zhong

et al. 2021

IJERPH

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In order to explore the internal connection between information sharing and investment performance in the venture capital network community, this study took environmental-governance start-ups as the research object and used the 2009–2020 environmental-social enterprise start-up venture capital investment events as a data sample. The successful exit rate of the venture capital portfolio and the successful listing rate of investment ventures were used as the measurement criteria. Combined with regression analysis, the relationship between information sharing and investment performance in the venture capital network community was analyzed in detail. Research shows that there are differences between the ways of information sharing in the venture capital network communities. In the regression results, all coefficients are less than 0.01. There is a positive correlation between information sharing and investment performance in the venture capital network community. With the increase in enterprise characteristic variables, the degree of enterprise risk information sharing is getting higher and higher. This ultimately leads to more and more frequent corporate investment performance and a higher possibility of acquisition. Among them, the degree of information sharing in the venture capital network community is relatively high, and venture capital companies that are supported by corporate venture capital institutions will benefit even more from listed capital. Not only was the analysis of the relationship between finance and investment in the venture capital network community pointed out in this research, but also the investment development of entrepreneurial enterprises was also provided with feasible suggestions.

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Section: Robustness Testsupporting

confidence: 92%

Section: Robustness Testsupporting

confidence: 92%

The Internal Connection Analysis of Information Sharing and Investment Performance in the Venture Capital Network Community

Feng

Sun

Zhong

et al. 2021

IJERPH

View full text Add to dashboard Cite

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“…The overlap between venture capital and private equity explains a large part of this theme. Many private equity funds style drift into venture capital deals, and vice versa (Koenig & Burghof, 2022 ). For example, Cumming, Fleming, and Schwienbacher ( 2009 ) report that 35.5% of early-stage venture capital deals are done by late-stage private equity funds.…”

Section: Science Mappingmentioning

confidence: 99%

Mapping the venture capital and private equity research: a bibliometric review and future research agenda

et al. 2022

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The fields of venture capital and private equity are rooted in financing research on capital budgeting and initial public offering (IPO). Both fields have grown considerably in recent times with a heterogenous set of themes being explored. This review presents an analysis of research in both fields. Using a large corpus from the Web of Science, this study used bibliometric analysis to present a comprehensive encapsulation of the fields’ geographical focus, methodological choices, prominent themes, and future research directions. Noteworthily, the foundational themes in venture capital research are venture capital adoption and financing processes, venture capital roles in business, venture capital governance, venture capital syndication, and venture capital and creation of public organizations. In private equity research, style drift into venture capital emerges as a key theme alongside buyouts and privatization, and valuation and performance of private equity investment.

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Style Drifts in Venture Capital

Hull

2023

The Palgrave Encyclopedia of Private Equity

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The Investment Style Drift Puzzle and Risk-Taking in Venture Capital

Cited by 3 publications

References 47 publications

The Internal Connection Analysis of Information Sharing and Investment Performance in the Venture Capital Network Community

The Internal Connection Analysis of Information Sharing and Investment Performance in the Venture Capital Network Community

Mapping the venture capital and private equity research: a bibliometric review and future research agenda

Style Drifts in Venture Capital

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