Abstract
This study adopts a sensemaking and sense-giving perspective to examine how venture capital affiliation influence its portfolio companies' IPO performance beyond the certification effect. We argue that the IPO company engages in a sensemaking and sense-giving process to tell a story to investors and influence their perceptions. The narratives help shape investors' perceptions by conveying entrepreneurial orientation and customer orientation. Based on a dataset consisting of 1,831 companies that went public between 2005-2019, we use PLS-SEM to test a multiple mediation model. The results suggest that venture capital presence positively affects IPO performance through increasing entrepreneurial orientation and customer orientation narratives in the prospectus.
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