- Consulting Editors
- The Capital Flow from Institutional Investors to Entrepreneurs
- Venture Capital and the Financial Crisis: An Empirical Study across Industries and Countries
- Venture Capital Reputation
- Keys to Fundraising Success in Nascent Venture Capital Firms
- Corporate Venture Capital in the Twenty-First Century: an Integral Part of Firms' Innovation Toolkit
- Corporate Venture Capital: From Venturing to Partnering
- Vipe Financing: Venture (Capital) Investments in Public Equity
- Philanthropic Venture Capital From A Global Perspective: Definition and Investment Strategy
- Venture Capital Before The First Dollar: Deal Origination, Screening, and Evaluation
- Capital Structure Determinants In Growth Firms Accessing Venture Funding
- Venture Capital Staging: Domestic Versus Foreign Vc-Led Investments
- Follow-On Financing of Venture Capital–Backed Companies
- Performance Implications of Venture Capital Syndication Networks
- Valuing Common and Preferred Shares in Venture Capital Financing
- Required Rates of Return and Financial Contracting for Entrepreneurial Ventures
- Financial Contracting in U.S. Venture Capital: Overview and Empirical Evidence
- Time-Inconsistent Preferences and Venture Capital Contracting
- Syndication of Vc Investments, Governance, and Contract Design
- Venture Capital in Germany: The Role of Venture Capital Firms' Experience, Ownership Structure, and Agency Problems
- Venture Capital Law Firms: An Analysis of Equity Investments and Networks
- From Ideas to Products: Financing Innovation and Getting Access to Innovation
- The Impact of Venture Capital on Innovation
- What Drives the Top Line?: Determinants of Sales Revenue in Private Venture–Backed Firms
- Value Added by Angel Investors through Postinvestment Involvement: Exploratory Evidence and Ownership Implications
- The Impact of Venture Capital on the Long-Term Performance of IPO Firms: Evidence from Korea
- Regional Impact of Venture Capital
- Spread, Scope, and Scale in Venture Capital Globalization: A Clustered Globalization Model
- The Development of Venture Capital: Macroeconomic, Political, and Legal Determinants
- A Comparative Analysis of Venture Capital Investment In the United States and Europe
- The Role of Geographic Proximity in Venture Capital
- Geography and Venture Capital Investment in the United States, 1995–2009
- The Role of Government, Venture Capital, and Banks in Closing Liquidity Gaps in the SME Sector of an Emerging Market
Abstract and Keywords
Venture investments in public equities (VIPEs) are a subset of private investments in public equities (PIPEs), which are sales of privately placed equity and equity-linked securities in companies with publicly listed shares. This article examines a large sample of VIPEs and attempts to answer the following questions: Has there been a significant increase in VIPEs over time? What are the typical characteristics of the firms receiving funding from VIPEs? Which securities and terms do venture capital firms (VCs) most frequently use? How do the public firms receiving funding from VCs perform after the issue? Because the cash flow rights obtained in PIPEs primarily pay off based on the issuer's postissue stock performance, the last question addresses how successful are the companies that VCs fund, and, to a large extent, how successful are the VCs themselves.
Susan Chaplinsky is the Tipton R. Snavely professor of business administration at the University of Virginia's Darden Graduate School of Business. Her research interests are primarily in capital raising and corporate finance with specialized interests in private equity, security issuance, capital structure, and PIPEs. She is the author of numerous articles that have appeared in the Journal of Finance, Journal of Financial Economics, Journal of Business, and Financial Management. She received her MBA and doctorate in business economics from the University of Chicago's Graduate School of Business.
David Haushalter is an associate professor of finance at Pennsylvania State University. His research interests are in empirical corporate finance. Currently, he is working on projects that examine the financial decisions of small businesses.
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