Exit Opportunities Research Articles

Mergers and Acquisitions Activity of Initial Public Offering Firms on Borsa Istanbul

This paper studies the mergers and acquisitions (M&As) activity of initial public offering (IPO) firms on Borsa Istanbul (BIST) that went public between 1990-2014. We find that among the 398 firms that went public 87 firms acquired other firms while 104 firms were targeted by other firms within the first five years after their IPOs. For firms that have been involved in an M&A activity, the aggregate deal volume corresponds to 16% of their market size for acquiring IPO firms, and 29% of their market size for targeted IPO firms. On average, while these IPO firms acquired 2.1 firms within five years, they were targeted by 1.7 firms. As a result, firms that convert to public ownership on BIST might participate as acquiring firms or as target firms in the subsequent M&A processes in the first five years after their IPO. Our findings indicate that firms go public on BIST mainly to provide an exit opportunity for their existing shareholders, and they accomplish this i) through the sale of existing shares to the general public in an IPO or ii) through the sale of existing shares to the acquiring firms in a post-IPO M&A.

Courts, Constituencies, and the Enforcement of Fiduciary Duties in the Nonprofit Sector

Directors of nonprofit organizations owe fiduciary duties to their organization, but the content of these duties--and how and when courts should enforce these duties--has long been debated among scholars and courts. This debate emerges in several areas, including the level of deference to be shown by courts to nonprofit directors (the business judgment rule), who should be allowed to sue to enforce duties (standing), and the type of relief available to prevailing plaintiffs (remedies). Existing literature debates these legal rules in isolation and in abstraction, generally failing to consider how the rules interact with each other and ignoring the empirical reality of the nonprofit sector. Because for-profit and nonprofit corporations evolved from a common ancestor, courts generally apply the corporation law principles developed in the context of for-profit corporations to nonprofit corporations as well. But for-profit and nonprofit corporations often differ in key ways, including sources of income, constituencies, and other institutional characteristics. These differences make rote application of corporate law principles to nonprofit corporations a conceptually questionable endeavor. Rather than setting nonprofit rules through strained analogies to for-profit concepts of ownership and profit-maximization, we propose employing an analysis of institutional features that can operate in a whole range of governance contexts, including the nonprofit sector. This approach considers opportunities for voice and exit, impact range, homogeneity, and comparative competence between boards and courts, and it does so among different types of nonprofit actors, like directors, members, employees, donors, customers, and beneficiaries. Using this institutional analysis with for-profit corporation law as the baseline, we compare emerging legal rules in the nonprofit sector against existing empirical literature. We find that, with one exception, institutional characteristics vis-à-vis nonprofit actors are reasonably comparable to their for-profit counterparts, and we therefore place the applicable legal regime with respect to those actors on a more conceptually sound footing. However, beneficiaries of a nonprofit organization tend to lack opportunities for exit or voice, face risk of considerable deprivation, and often differ considerably in relevant aspects from the individuals who manage the organization. We argue that the law should take into account the limited power of beneficiaries in nonprofit governance structures, and we analyze options for reform.

Finding Exits and Voices: Albert Hirschman's Contribution to the Study of Public Services

ABSTRACTAlbert Hirschman makes an important contribution to the study of public services with his book Exit, Voice, and Loyalty (1970). Hirschman shows that exit and voice are the two main responses to dissatisfaction, with voice being more effective and desirable. His core claims are that a lack of exit opportunities increases voice, and loyalty reduces exit. The exit, voice, and loyalty (EVL) framework is very suitable for understanding how public services can perform effectively and responsively, as there are a range of exits and voices available to citizens and employees when they are dissatisfied. Though there are extensive citations of Hirschman, relatively few scholars fully apply the framework. The main exceptions are the literatures on urban services and on intentions to exit by public employees. Yet the topics of service quality, performance, competition, choice, and participation continue to be of core interest to scholars of public administration. Hirschman's insights and framework foster understanding of the relationships between different kinds of citizen responses to dissatisfaction and how to achieve better-quality public services.

Hong Kong In-Depth Research Report Series - Monetary Policy Section

Hong Kong (HK) adopted the Linked Exchange Rate system in 1983 and it has been operating successfully for more than three decades. However, the maintenance costs of the system have become huge and they might outpace the exit costs, especially under the combined influence of a slow-down of the Chinese economy and an interest rate hike in the U.S. Compared with the Asian Financial Crisis in 1997, the HK government owns much larger foreign reserves at present than it did then. The HK government is also facing a much more severe populist political environment and the anger of low income residents towards wealth inequality. The anger of low income residents could be “the last straw that breaks the camel’s back” in terms of the HK government maintaining the Currency Board System. At present the cost of exiting the Linked Exchange Rate system is small thanks to capital inflows from Mainland China. However, the time horizon for the existence of such a good exit opportunity is short. There are two ways in which investors can speculate on an exit from the Currency Board System but political reasons weigh the most heavily. If investors speculate on a de-pegging strategy at present and bet on a strengthening HKD, their actions are “politically correct” and they might receive less hostility or even acquiescence from the HK government. Consequently, investors have a much greater chance of success compared to adopting a “double down” strategy to capitalize on the HKD depreciating when the Chinese economy experiences a hard landing.

In Defense of Workplace Democracy

In the wake of the 2008 global financial crisis, an important conceptual battleground for democratic theorists ought to be, it would seem, the capitalist firm. We are now painfully aware that the typical model of government in so-called investor-owned companies remains profoundly oligarchic, hierarchical, and unequal. Renewing with the literature of the 1970s and 1980s on workplace democracy, a few political theorists have started to advocate democratic reforms of the workplace by relying on an analogy between firm and state. To the extent that a firm is an organization comparable to the state, it too ought to be ruled along democratic lines. Our paper tests the robustness of the analogy between firm and state by considering six major objections to it: (1) the objection from a difference in ends, (2) the objection from shareholders’ property rights, (3) the objection from worker’s consent, (4) the objection from workers’ exit opportunities, (5) the objection from workers’ (lack of) expertise, and (6) the objection from the fragility of firms. We find all of these objections wanting. While the paper does not ambition to settle the issue of workplace democracy at once, our goal is to pave the way for a more in-depth study of the ways in which firms and states can be compared and the possible implications this may have for our understanding of the nature of managerial authority and the governance of firms.

Finding Exits and Voices: Albert Hirschman's Contribution to Study of Public Services

This paper assesses Albert Hirschman’s contribution to the study of public services, in particular his book Exit, Voice and Loyalty (1970). Hirschman argues that exit and voice are the two main responses to dissatisfaction. Voice is more effective and desirable; a lack of exit opportunities increases voice; and loyalty reduces exit. The exit, voice and loyalty (EVL) framework is very suitable for understanding how public services can perform effectively and responsively as there are a wide range of exits and voices available to citizens and employees when they are dissatisfied. Though there are extensive citations of Hirschman relatively few scholars directly apply the framework. The main exception is the literature on urban services and studies of intentions to exit by public employees. Yet the topics of service quality, performance, competition, choice and participation continue to be of core interest to scholars of public administration. Hirschman’s insights and framework can foster understanding of the relationships between different kinds of citizen responses and the quality of public services.

Corporate social responsibility and mental health: The Premier League football Imagine Your Goals programme

Football is increasingly used to facilitate recovery in mental health services, often in partnership with football clubs. However, few clubs have made mental health part of their corporate social responsibility programmes until recently. We report the impact on participants of the ‘Imagine Your Goals’ programme, run by 16 Premier League football clubs in conjunction with England's Time to Change programme to reduce mental health-related stigma and discrimination. Mixed methods evaluation used pre/post measures of well-being, access to social capital, focus groups held early on and towards the end of the two-year programmes, and questionnaires for coaching staff. There were no significant changes to participants’ mental well-being scores between baseline and follow-up, nor to the total number of social resources accessible through their networks. However, there was a statistically significant increase at follow-up in the mean score of the personal skills subscale of the Resource Generator-UK. Participants’ individual skills were also higher at follow-up. Qualitative data showed programmes had largely met participants’ expectations in terms of socializing, providing structure and improving fitness levels, exceeded expectations in relationships with coaching staff and additional activities, but did not always meet them in improving football skills. Participants varied in their knowledge of exit opportunities, depending on which club's programme they attended. A minority of clubs reported difficulties in recruitment and concerns about planning for the future of the projects.Football clubs and the charitable foundations they set up can successfully deliver programmes to people with mental health problems which improve access to personal skills social capital and have other potential benefits.

Private Equity in Emerging Markets: Drivers in Asia Compared with Developed Countries

This article reveals interesting structural differences in private equity fundraising in Asia compared with developed markets. Exit opportunities and the amount of credit provided by the banking sector are found to be strong determinants of new funds raised. Unlike in developed markets, however, emerging markets are negatively impacted by the amount of credit provided by the banking sector: Funding of transactions stands in direct competition with banks in these markets as more credit is provided by the banking sector. Fewer investment opportunities remain for private capital. The negative relationship with credit provided by the banking sector is reflected in different business approaches. In developed markets, banks financially leverage private equity transactions to a substantial degree to magnify returns to investors. In emerging markets, private equity transactions use less leverage. Differentiating along investment stages, economic growth and research and development (R&amp;D) expenditures are found to be of particular importance to venture capital. For later-stage leveraged buyouts, the degree of recent deals negatively impacts funds raised. As competition for attractive deals among private equity funds intensifies, investor return expectations deteriorate and fundraising is reduced as a consequence. <b>TOPICS:</b>Private equity, emerging, portfolio construction, statistical methods

Cross‐Border Investments and Venture Capital Exits inEurope

AbstractManuscript TypeEmpiricalResearch Question/IssueWe examine the way in which the exit mode (i.e., initial public offering –IPO, trade sale, or write‐off) of venture capital (VC) investments is influenced by the additional exit opportunities brought by cross‐borderVCinvestors.Research Findings/InsightsWe perform our analysis on a sample of 1,062 VC investments in 462 young high‐tech companies in seven European countries. Our findings indicate that, controlling for firm performance, investor characteristics, and local exit conditions, the probability of exiting via trade sale is positively correlated to the additional set of mergers and acquisitions (M&amp;A) opportunities brought by cross‐border investors. A similar effect, but with weaker statistical significance, is also identified for exits byIPO, which are positively affected byIPOvolumes in the countries of cross‐border investors.Theoretical/Academic ImplicationsCross‐borderVCinvestment may, at least partially, compensate for inadequate local exit conditions. Cross‐border investors can spillover the capital market activity of their home country and enhance exit options for young ventures. International syndicates are also quicker to write off their non‐performing investments.Practitioner/Policy ImplicationsNot all exit modes are equally affected by international syndication. The impact of cross‐border investors on the exit mode also depends on their country of origin and, more specifically, on the exit opportunities available there. The mechanism is stronger for trade sales than forIPOs.

Von Krahli Teatri „Luikede järv“ kui mälumasin: esteetiline absoluut ja sotsiaalne kontekst

This paper analyses the interrelation between video projections and stage action and the meanings created via these relations in Von Krahl Theatre’s production of „Swan Lake“ (2003, directors Peeter Jalakas and Alexander Pepelyayev). „Swan Lake“ at Von Krahl Theatre was a post-modern interpretation of Tchaikovsky’s ballet that deconstructed myths of Soviet society. In the conceptual introduction to the performance, the directors dedicated the production to the theme of absolute beauty and aesthetic ideal, and claimed the synthesis of aesthetic and social contexts to be of utmost importance. The performance analysis in this article reveals the ambivalence of the aesthetic absolute and position of the ballet „Swan Lake“ as an icon. The context of this production was layered through the social and political, as well as artistic processes that influenced the reception of the performance. The social and aesthetic context is analysed based on Mieke Bal’s concept of framing, which is more dynamic and open than understanding context as something fixed. The analysis of screens and the stage action is based on the theoretical models of intermediality in performing arts. The central section of this paper is focused on analysing the stage action and the relationship between the stage action and video projections as techniques of dissonance. This work by Jalakas and Pepelyaev was a multimedia dance performance where video clips of the ballets „Swan Lake“ and „The Dying Swan“ alternated with footages of Soviet heavy industry, war apparatus, athletes, etc. The various oppositions and parallels between the stage action and screen footage made the political meaning of the performance visible. The paper also analyses the narrative structure, the cast of characters and scenography. There was a certain hierarchy in the cast (actors versus dancers) and character structure (politicians, Black and White Swan, and the corps de ballet) which was rather weakly based on the dramatis personae of the ballet „Swan Lake“. The stage action can be described using the metaphors of machinery or game; its relationship to the screen adds the metaphor of a dream world. The movement of the dancers remained mechanical although the choreography was postmodern and more playful than that of a ballet. The crisis of totalitarian order can be seen in the changes taking place in the middle of the performance where the rigid structure of characters became decomposed and the movement became more dynamic. The video projections are examined according to three models of intermediality: hierarchical, inter-relational and hybrid (Lavender 2010). The hierarchical model (one media dominating the others) appeared in certain situations only. The most frequent model of the relationship between stage action and screens was the inter-relational. This model is structured by the gaps and (opening up of) spaces and „fissures“ in the performance, here appearing through parallelisms of the screen images and stage and at given moments of intersection. The least represented model was the hybrid model, i.e. the one where figures of different media were merged; it existed only in a hybrid reality created by computer animation. On a social level, the performance represented a totalitarian, closed system that lacked any opportunity for a positive exit. Aesthetically, the production can be compared to theatre of the absurd, which is also characterized by a representation of a certain state of being and a feeling of inescapability. The result of juxtaposing post-modern dance and videos was a complex co-existence of several choreographic languages and body techniques. The main relationship between the stage and the screens in the situation of the totalitarian society in this production was dissonance and the production can be summed up as a performative memory machine.

Cross-Border Investments and Venture Capital Exits in Europe

We examine how the exit mode (i.e., initial public offering - IPO, trade sale, or write-off) of venture capital investments is influenced by additional exit opportunities brought by cross-border investors. We perform our analyses on a sample of 1,062 financing rounds in 462 high-tech start-ups in 7 European countries. Our findings indicate that, controlling for firm performance, investor characteristics, and local exit conditions, the probability of exiting via trade sale increases with the additional set of M&A opportunities brought by cross-border investors. A similar effect, but with weaker statistical significance, is detected for IPO exits. We reveal that cross-border investors may, at least partially, compensate for insufficient local exit possibilities. They can spillover the capital market activity of their home country and enhance exit options for young ventures. International syndicates are also quicker to write-off their non-performing investments. Hence, international syndication improves the proficiency of entrepreneurial finance relationships.

Unnoticed apocalypse

The slogan ‘capitalism is crisis’ is one that has recently circulated swiftly around the global Occupy movement. From Schumpeter to Marx himself, the notion that the economic cycles instituted by capitalism require periodic crises as a condition of renewed capital accumulation is a commonplace. However, in a number of recent texts, this conception of crisis as constituting the very form of urban capitalist development itself has taken on a more explicitly apocalyptic tone, exemplified by the Invisible Committee's influential 2007 book The Coming Insurrection, and its account of what it calls simply ‘the metropolis’. ‘It is useless to wait’, write the text's anonymous authors, ‘for a breakthrough, for the revolution, the nuclear apocalypse or a social movement.… The catastrophe is not coming, it is here.’ In considering such an apocalyptic tone, this paper thus situates and interrogates the text in terms both of its vision of the metropolis as a terrain of total urbanization and its effective spatialization of the present as itself a kind of ‘unnoticed’ apocalypse: the catastrophe which is already here. It does so by approaching this not only apropos its place within contemporary debates surrounding leftist politics and crisis theory but also via its imaginative intersection with certain post-1960s science fiction apocalyptic motifs. What, the paper asks, does it mean to think apocalypse as the ongoing condition of the urban present itself, as well as the opening up of political and cultural opportunity for some speculative exit from its supposedly endless terrain?

Developing a Statewide Nursing Consortium, Island Style

This article describes the transformational changes in the scope and pedagogy of nursing education within a state university system through the development of the Hawaii Statewide Nursing Consortium (HSNC) curriculum. Modeled after the Oregon Consortium for Nursing Education, the HSNC used a community-based participatory approach to develop the curriculum to support all students within the state who are eligible to earn a baccalaureate degree. The curriculum was designed as a long-term solution to the anticipated shortage of nurses to care for Hawaii's diverse population. It is also an effort to increase capacity in schools of nursing by making the best use of resources in the delivery of a baccalaureate curriculum that offers exit opportunities after the completion of an associate degree. Finally, it provides new ways of educating students who will be better prepared to meet Hawaii's health needs.

Are unequal societies more migratory?

Are unequal societies more migratory? The position of this paper is: not necessarily, it depends on the type of inequality. By proposing horizontal and vertical inequality between and within ethnic groups as separate drivers of migration, we hypothesize that heightened emigration is a consequence of vertical inequality and feelings of individual relative deprivation, whereas people facing horizontal inequality feel rather strongly about collective relative deprivation, making non-migration more likely. Consequently, inequality and relative deprivation can work in both directions, i.e. either as a driver or a barrier of migration, depending on whether social comparisons are made within or between ethnic groups. Analysis of emigrant stocks for a large set of developed and developing countries show that countries with higher levels of horizontal inequality across ethnic groups show a lower emigration propensity whereas vertical within-group inequality seems rather a reason for people moving abroad. The analysis also shows that the relative size of these behavioural responses depends on people’s educational levels which largely reflect their exit opportunities.

Extra-Nuclear Dislocation of PU.1 but Not CEBPA by Mutated NPM1 in AML Explains Lineage-Associations, ATRA Therapeutic Potential and DNMT3A Secondary Mutation.

AbstractAbstract 2427In AML, there is robust linkage between genetic abnormalities and particular lineage-morphologies. One example is the linkage between NPM1 mutation and monocytic morphology: 51% of NPM1-mutated AML (n=47) in the TCGA database are monocytic (M4 or M5) (p=0.007, Chi-test). AML is the culmination of years of neoplastic evolution, and a reasonable postulate is that lineage associations are not epiphenomenom but optimal phenotype with respect to initiating genetic events: MYC, the ancient driver and coordinator of cell growth and division, is most highly activated and stabilized with lineage-commitment, and leukemia cells, including leukemia initiating/stem cells, are lineage-committed not only by surface phenotype, but also with high expression of lineage-specifying transcription factors (e.g., PU.1, CEBPA). However, sustained MYC activity also requires suppression of lineage maturation genes which are potent MYC-antagonists (e.g., CEBPE). We hypothesized that mutated NPM1 most efficiently impairs activation of monocytic maturation genes, creating selective pressure for neoplastic evolution towards this lineage.PU.1 and CEBPA are essential drivers of monocyte and granulocyte commitment and maturation respectively. OCI-AML3 is an AML cell line containing mutated NPM1; fractionation into cytoplasmic and nuclear fractions and Western blot confirmed NPM1 dislocation into the cytoplasm. Similar to NPM1, PU.1 was detected in cytoplasmic but not nuclear fractions. Strong protein-protein interaction between NPM1 and PU.1 was confirmed by bidirectional immunoprecipitation/Western blot analysis, suggesting that mutated NPM1 caused the PU.1 dislocation. Unlike PU.1, CEBPA was expressed and localized in the nucleus at high levels. In OCI-AML2 cells containing wild-type NPM1, both PU.1 and CEBPA protein were localized in the nucleus. PU.1 but not CEBPA absence from the nucleus of OCI-AML3 suggests limited possibility of monocytic, but potential for granulocytic maturation, especially since PU.1 may usually antagonize retinoic acid (ATRA) mediated gene activation (Gauthier et al): ATRA at a clinically relevant concentration (0.5 microM) terminated OCI-AML3 proliferation accompanied by >50% upregulation in CD11b expression and morphologic granulocyte maturation (nuclear condensation and segmentation). CD14 (monocyte marker) expression decreased (>80%) simultaneously. NPM1 mutated AML has normal cytogenetics and limited mutations, underscoring that key late-differentiation MYC-antagonist genes are genetically intact but epigenetically suppressed. Accordingly, the addition of the epigenetic drug decitabine at non-cytotoxic concentrations augmented ATRA-induced granulocytic maturation. Vitamin D3 at clinically relevant concentration (1 nM) did not decrease cell proliferation or induce morphologic maturation.Another implication of the potent block in cell cycle exit via monocytic but not granulocytic pathways is selective pressure for secondary mutations that favor monocyte lineage-commitment. DNMT3A interacts with polycomb proteins that repress lineage-programs and DNMT3A inactivating mutation is frequent in NPM1 mutated AML (51% of TCGA cases). Suggesting DNMT3A loss of function releases a monocytic program in an AML cellular context, significant inverse correlation between DNMT3A and PU.1 expression (Corr. Coeff. −0.43, p<0.0001) was observed in TCGA intermediate risk AML. Both in AML in general and more specificially in NPM1 mutated AML, DNMT3A mutation was significantly associated with M4 or M5 (14/23 [61%]) versus M1 morphology (4/13 [30%], p<0.001 Chi-test), higher peripheral blood absolute monocyte counts (median 3.96 IQR18.8 v 0.37 IQR7.4, p=0.04 Wilcoxon test) and bone marrow non-specific esterase positivity (14/21 [67%] v 7/19 [37%], p=0.06 Chi-test). Interestingly, DNMT3A mutations are not observed in AML containing primary genetic events that potently repress granulocytic but not necessarily monocytic maturation (RUNX1-ETO).Lineage-phenotype in AML reflects selection for secondary mutations that cooperate with initiating events to restrict opportunities for cell cycle exit by maturation. These considerations in NPM1 mutated AML provide a mechanism-basis for frequent DNMT3A secondary mutations, efficacy of ATRA (also observed clinically: Schlenk et al;Burnett et al), and for combination ATRA/decitabine therapy. Disclosures:Saunthararajah:Cleveland Clinic Innovation: patent application for oral THU-decitabine., patent application for oral THU-decitabine. Patents & Royalties.

Abnormal whole-brain functional networks in homogeneous acute mild traumatic brain injury

To evaluate the whole-brain resting-state networks in a homogeneous group of patients with acute mild traumatic brain injury (MTBI) and to identify alterations in functional connectivity induced by MTBI. Thirty-five patients with acute MTBI and 35 healthy control subjects, matched in age, gender, handedness, and education, underwent resting-state fMRI, susceptibility weighted imaging, neuropsychological, and postconcussive symptom assessments. We ensured the homogeneity of the patient group by limiting the injury mechanism to fronto-occipital impacts. Alterations in functional connectivity were analyzed by using data-driven independent component analysis, which is not biased by a priori region selection. We found a decrease in functional connectivity within the motor-striatal network in the MTBI group. At the same time, patients showed deficits in psychomotor speed as well as in speed of information processing. We propose that although disorders in motor function after MTBI are rarely reported, injury still has an effect on motor functioning, which in its turn may also explain the reduction in speed of information processing. Further, we found a cluster of increased functional connectivity in the right frontoparietal network in the MTBI group. We suggest that this abnormal increased connectivity might reflect increased awareness to external environment and explain excessive cognitive fatigue reported by patients with MTBI. It might also underlie the physical postconcussive symptoms, such as headache and increased sensitivity to noise/light. We proved that whole-brain functional connectivity is altered early (within 4 weeks) after MTBI, suggesting that changes in functional networks underlie the cognitive deficits and postconcussive complaints reported by patients with MTBI.

Applied paramedic science at the University of Hertfordshire: clinically focused development

This article describes the design, development and purpose behind a new undergraduate part-time programme from the University of Hertfordshire, the BSc (Hons) in applied paramedic science. In attending the programme, paramedics with or without prior experience of higher education have the opportunity to undertake continuing professional development activities, which advance their clinical skills and knowledge. Several exit opportunities, with an academic award are possible; such as a Diploma in applied paramedic science following a minimum of nine months taught academic study. Education is delivered through a blended-learning strategy, using innovative e-learning activities and focused campus attendances, teaching in specialist facilities developing advanced clinical abilities.

Resolving Problems among Neighbors in Post‐Soviet Russia: Uncovering the Norms of the Pod”ezd

The article presents findings from a qualitative study of how Russians deal with neighbors who have leaked water onto them. In the Russian context, this is neither an uncommon nor a small problem. Building on US‐based studies of neighborhood relations, the article lays out three alternative strategies: avoidance, self‐help, and third‐party intervention. The Russian participants lived in close proximity to one another and had little opportunity for exit. The study documents a strong preference for self‐help, confirming the potency of the relational distance hypothesis for Russia. In contrast to their US counterparts, the Russian participants' lack of exit did not give rise to more intense and prolonged disputes. The findings suggest that there is a strong informal norm in favor of neighbors resolving disputes among themselves and that the residents who share common entryways (pod”ezdy) work out the parameters of acceptable behavior over time. These informal norms shape Russians' legal consciousness.

Increasing clarity

The fates of biotechnology companies, like those in many other dynamic industries, depend on the outcome of future events, which can be difficult to predict. Seemingly late-stage issues such as regulatory uncertainty dissuade investors, stalling innovation and company growth. Accordingly, increased definition of regulatory processes and opportunities for profitable investment exit can improve the financing climate, and drive innovation. In my editorials earlier this year I have commented on the numerous uncertainties the biotechnology industry faced. What a difference a few months makes! Recent events have clarified several important issues.Although obtaining financing in biotechnology has seldom been described as easy, the situation is far better now than it was a year ago. With a large number of companies having less than a year's cash on hand, there was a strong fear that a majority of biotechnology companies would go bankrupt. This fear was not realized, and it appears that companies were able to adjust their burn rates and fundraising activities to accommodate the financial challenges. While many jobs were cut and R&amp;D scaled back, mass-bankruptcy now seems unlikely and the industry stands well positioned for growth.The passage of the health reform bill has also had a profound impact. Important issues such as the approval pathway for generic biologics and data exclusivity for branded biologics are now better defined. The FDA has been empowered to approve follow-on biologic drugs, and biologic manufacturers have been granted 12 years of exclusivity. For more discussion on biologic exclusivity, see the two commentaries on the topic in issue 16.1.1, 2These important clarifications are offset by some important unresolved issues: The Small Business Innovation Research program, which is an important source of gap financing between academic and development-stage research for American companies, is overdue for reauthorization. While the US congress has failed to renew the program, it appears that the program will continue to be extended through annual 1-year ‘punts’. Another pressing issue is approval time for biologic drugs. While the FDA approved 16 biologic drugs in 2009 – reversing a declining trend – it appears that approval times are increasing. So it appears that while development-stage funding and follow-on biologic approval are becoming better-defined, other issues may be taking their place as key issues.NETWORK ON LinkedInThe Journal of Commercial Biotechnology has a networking group on LinkedIn. You can use this forum to discuss papers, to post jobs, to announce industry events and company updates, and for general networking. The JCB networking forum is available at www.linkedin.com/groups?gid=1241807&amp;trk=hb_side_g. See you there!References Pitts, P.J. (2010) Why data exclusivity is the new patent protection. Journal of Commercial Biotechnology 16 (1): 3–4.Wroblewski, M.S. and Jex, E.A. (2010) Follow-on biologic drug competition – No need for new marketing exclusivities. Journal of Commercial Biotechnology 16 (1): 5–7.

Venture capital syndication in times of economic crisis

This study analyses the effects of the 2000–2001 dot-com crisis and the 2008–2009 financial crisis on venture capital syndication. Using propensity score matching analysis, we show that during the two crises, venture capital firms (VCFs) had a lower tendency to syndicate their investments, and the size of the syndicates was smaller. This effect is found to be stronger for later-stage financing than for early stage financing. We explain the lower propensity to syndicate and the reduction in syndicate size by the existence of fewer exit opportunities for VCFs and a lower supply of funds for the venture capital industry. Implications for VCFs and start-up firms are discussed.