THE PERFORMANCE OF VENTURE-BACKED IPOS ON EUROPE’S NEW STOCK MARKETS: EVIDENCE FROM FRANCE, GERMANY AND THE U.K

Abstract

This chapter investigates the impact of venture capitalists on the operating and market performance of firms going public on the French Nouveau Marche, the German Neuer Markt and the British techMARK. Considering different variables that reflect the quality of venture-backing, the findings suggest that venture-backed firms do not generally outperform those without venture-backing. However, a subgroup of internationally operating venture capitalists has positive effects on the performance of portfolio firms. The outcome is interpreted as evidence of heterogeneity among venture capitalists in the European market.