impact investing; IPO; propensity score matching; syndication; venture capital
Résumé :
[en] With the global rise of impact investments to achieve societal goals, an increasing number of new ventures that aim to create societal impact now seek to go public. However, while many conceptual studies suggest that impact investors are less likely to pursue financially oriented exit plans in exchange for generating societal impact, there is little empirical evidence to back up this claim. Using a propensity score matching approach, we draw on data from Crunchbase and empirically compare the initial public offering (IPO) performance of a large sample of 3398 investments by impact investors with 3398 investments by matched venture capital (VC) investors. We find that impact investor investments are less likely to lead to an IPO than VC investments. Besides, our results indicate that syndication by impact investors increases the likelihood of an IPO. This suggests that companies funded by impact investors benefit more from syndication than their VC-funded counterparts. Our findings have practical implications for impact investors, portfolio ventures, and policymakers.
Centre de recherche :
Interdisciplinary Centre for Security, Reliability and Trust (SnT) > EINT-Entrepreneurship, Innovation and New Technology NCER-FT - FinTech National Centre of Excellence in Research
Disciplines :
Finance
Auteur, co-auteur :
HIRSCHMANN, Mirko ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > Entrepreneurship, Innovation, and New Technology (EINT)
FISCH, Christian ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > Entrepreneurship, Innovation, and New Technology (EINT)
Co-auteurs externes :
no
Langue du document :
Anglais
Titre :
IPO performance of portfolio ventures funded by impact investors versus venture capital investors
Date de publication/diffusion :
2023
Titre du périodique :
Journal of International Financial Management and Accounting
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