Figure 1 Proposed model of VC exits
Figure 2 Distribution of successful exits
Figure 3 IPO and M&A exits and funding stage focus
Figure 4 IPO and M&A exits and VC firm ownership type
Figure 5 IPO and M&A exits and high-technology investment focus
Figure 6 IPO and M&A exits and age of the VC firm
Figure 7 IPO and M&A exits and physical location of the VC firm in Bangalore
Figure 8 IPO and M&A exits and syndication of the VC firms
Figure 9 IPO and M&A exits and social sector focus of VC firms
Table 1 Bi-Variate correlations
Table 2 Logistic regression model output
References
- Bain Consulting (2011, 2012, 2013, 2014, 2015, 2016) India Private Equity Report, From http://www.bain.com.
- Bala Subrahmanya, M.H. (2014) Why does India's economic growth process falter?, Economic and Political Weekly, XLIX(8).
- Barney, J., Wright, M. and Ketchen Jr, D.J. (2001) The resource-based view of the firm: ten years after 1991, Journal of Management, 27(6), 625-641. https://doi.org/10.1016/S0149-2063(01)00114-3
- Barry, C.B. (1994) New directions in research on venture capital finance, Financial Management, 3-15.
- Bartlett III, R.P. (2006) Venture capital, agency costs and the false dichotomy of the corporation, UCLA Literature Review, 54, 37.
- Black, B.S. and Gilson, R.J. (1998) Venture capital and the structure of capital markets: banks versus stock markets, Journal of Financial Economics, 47(3), 243-277. https://doi.org/10.1016/S0304-405X(97)00045-7
- Brander, J., Antweiler, W. and Amit, R. (2002) lVenture capital syndication: improved venture selection vs. value added hypothesis, Journal of Economics and Management Strategy, 11(3), 423-452. https://doi.org/10.1111/j.1430-9134.2002.00423.x
- Chandrashekar, D. and Bala Subrahmanya, M.H. (2018) Absorptive capacity, cluster linkages, and innovation: an evidence from Bengaluru high-tech manufacturing cluster, Journal of Manufacturing Technology Management, 29(1), 121-148. https://doi.org/10.1108/JMTM-05-2017-0087
- Cochrane, J.H. (2005) The risk and return of venture capital, Journal of Financial Economics, 75(1), 3-52. https://doi.org/10.1016/j.jfineco.2004.03.006
- Cumming, D.J. and MacIntosh, J.G. (2001) Venture capital investment duration in Canada and the United States, Journal of Multinational Financial Management, 11(4), 445-463. https://doi.org/10.1016/S1042-444X(01)00034-2
- Cumming, D.J. and MacIntosh, J.G. (2003a) A cross-country comparison of full and partial venture capital exits, Journal of Banking and Finance, 27(3), 511-548. https://doi.org/10.1016/S0378-4266(02)00389-8
- Cumming, D.J. and MacIntosh, J.G. (2003b) Venture-capital exits in Canada and the United States, University of Toronto Law Journal, 101-199.
- Cumming, D. and Johan, S. (2010) Venture capital investment duration, Journal of Small Business Management, 48(2), 228-257. https://doi.org/10.1111/j.1540-627X.2010.00293.x
- Cumming, D. and Dai, N. (2010) Local bias in venture capital investments, Journal of Empirical Finance, 17(3), 362-380. https://doi.org/10.1016/j.jempfin.2009.11.001
- Devigne, D., Vanacker, T., Manigart, S. and Paeleman, I. (2013) The role of domestic and cross-border venture capital investors in the growth of portfolio companies, Small Business Economics, 40(3), 553-573. https://doi.org/10.1007/s11187-011-9383-y
- Economic Times (2015) Http://articles.economictimes.indiatimes.com/2015-03-9/news /60286506_1_idg-ventures-india-technology-startups-sebi-chairman-uk-sinha.
- Ernst and Young (2014) Adapting and evolving - global VC insights from http://www.ey.com.
- Giot, P. and Schwienbacher, A. (2007) IPOs, trade sales and liquidation: modelling venture capital exits using survival analysis, SSRN Electronic Journal, 31(3), 679-702.
- Gompers, P.A. (1996) Grandstanding in the venture capital industry, Journal of Financial Economics, 42(1), 133-156. https://doi.org/10.1016/0304-405X(96)00874-4
- Gompers, P. and Lerner, J. (1999) What drives venture capital fundraising?, National Bureau of Economic Research, W6906.
- Gompers, P.A. and Lerner, J. (2004) The Venture Capital Cycle, MIT press.
- Gujarati, D.N. (2012) Basic Econometrics, Tata McGraw-Hill Education.
- Hege, U., Palomino, F. and Schwienbacher, A. (2003) Determinants of venture capital performance: Europe and the United States, LSE Ricafe Working Paper 1.
- Huang, Y. and Khanna, T. (2003) Can India overtake china?, Foreign Policy, (137), 74.
- Hochberg, Y.V., Ljungqvist, A. and Lu, Y. (2007) Whom you know matters: venture capital networks and investment performance, Jounal of Finance, 62(1), 251-301. https://doi.org/10.1111/j.1540-6261.2007.01207.x
- Joshi, K. (2015) Economics of venture capital industry in India: an analysis of the macro ecosystem and micro decision making, Unpublished Ph.D Thesis, Bangalore, India: Department of Management Studies, Indian Institute of Science.
- Joshi, K.A. and Subrahmanya, M.H. (2014, September) What drives Venture Capital fundraising in India: An empirical analysis of systematic and non-systematic factors. In Management of Innovation and Technology (ICMIT), 2014 IEEE International Conference, 35-40.
- Joshi, K. (2018a) Managing information asymmetry risks using deal syndication and domain specialization: an Indian context, Asian Journal of Innovation and Policy, 7(1), 150-177. https://doi.org/10.7545/AJIP.2018.7.1.150
- Joshi, K. (2018b) Managing the risks from high-tech investments in India: differential strategies of foreign and domestic venture capital firms, Journal of Global Entrepreneurship Research, Forthcoming.
- Joshi, K. and Satyanarayana, K. (2014) What ecosystem factors impact the growth of high-tech start-ups in India?, Asian Journal of Innovation and Policy, 3(2), 216-244. https://doi.org/10.7545/ajip.2014.3.2.216
- Joshi K. (2018c) Emergence and persistence of high-tech start-up clusters: an empirical study of six Indian clusters, International Journal of Global Business and Competitiveness, Forthcoming.
- Kaplan, S.N. and Schoar, A. (2005) Private equity performance: returns, persistence, and capital flows, The Journal of Finance, 60(4), 1791-1823. https://doi.org/10.1111/j.1540-6261.2005.00780.x
- Lerner, J. (1994) The syndication of venture capital investments, Financial Management, 16-27.
- Lerner, J. (1995) Venture capitalists and the oversight of private firms, The Journal of Finance, 50(1), 301-318. https://doi.org/10.1111/j.1540-6261.1995.tb05175.x
- Livemint (2017) Article titled 'Inside SoftBank's India investment strategy' by Snigdha Sengupta and Mihir Dalal, Https://www.livemint.com/Companies/rjLn8PbvwxREo7GvWgn1cM/Inside-SoftBanks-India-investment-strategy.html.
- Livemint (2018) Article titled 'Venture capital in India: Are exits heating up? Or is it just an illusion?' by Radha Kizhanattam, Https://www.livemint.com/Money/U094 EuSmwfy7aZJzKI1ZGM/Venture-capital-in-India-Are-exits-heating-up-Or-istjus.html.
- Long, J.S. (1997) Regression Models for Categorical and Limited Dependent Variables, Sage Publishing.
- Manigart, S., Waele, D., Wright, M., Robbie, K., Desbrieres, P., Sapienza, H. and Beekman, A. (2000) Venture capitalists, investment appraisal and accounting information: a comparative study of the USA, UK, France, Belgium and Holland, European Financial Management, 6(3), 389-403. https://doi.org/10.1111/1468-036X.00130
- Manigart, S., De Waele, K., Wright, M., Robbie, K., Desbrières, P., Sapienza, H. J. and Beekman, A. (2002) Determinants of required return in venture capital investments: a five-country study, Journal of Business Venturing, 17(4), 291-312. https://doi.org/10.1016/S0883-9026(00)00067-7
- Mosey, S. and Wright, M. (2007) From human capital to social capital: a longitudinal study of technology‐based academic entrepreneurs, Entrepreneurship theory and practice, 31(6), 909-935. https://doi.org/10.1111/j.1540-6520.2007.00203.x
- Myers, S.C. and Majluf, N.S. (1984) Corporate financing and investment decisions when firms have information that investors do not have, Journal of Financial Economics, 13(2), 187-221. https://doi.org/10.1016/0304-405X(84)90023-0
- Nahata, R. (2008) Venture capital reputation and investment performance, Journal of Financial Economics, 90(2), 127-151. https://doi.org/10.1016/j.jfineco.2007.11.008
- Nikoskelainen, E. and Wright, M. (2007) The impact of corporate governance mechanisms on value increase in leveraged buyouts, Journal of Corporate Finance, 13(4), 511-537. https://doi.org/10.1016/j.jcorpfin.2007.04.002
- Norton, E. and Tenenbaum, B.H. (1993) Specialization versus diversification as a venture capital investment strategy, Journal of Business Venturing, 8(5), 431-442. https://doi.org/10.1016/0883-9026(93)90023-X
- Panda, S. and Dash, S. (2016) Exploring the venture capitalist-entrepreneur relationship: evidence from India, Journal of Small Business and Enterprise Development, 23(1), 64-89. https://doi.org/10.1108/JSBED-05-2013-0071
- Planning Commission, India (2012) Creating a Vibrant Entrepreneurial Ecosystem for India', Report of the Committee on Angel Investment and Early Stage Venture Capital from http://planningcommission.nic.in/reports/genrep/rep_eco2708.pdf.
- Sah, R.K. and Stiglitz, J.E. (1984) The architecture of economic systems: hierarchies and polyarchies, National Bureau of Economic Research, W1334.
- Sahlman, W.A. (1990) The structure and governance of venture-capital organizations, Journal of Financial Economics, 27(2), 473-521. https://doi.org/10.1016/0304-405X(90)90065-8
- Sapienza, H.J. (1992) When do venture capitalists add value? Journal of Business Venturing, 7(1), 9-27. https://doi.org/10.1016/0883-9026(92)90032-M
- Sapienza, H.J., Manigart, S. and Vermeir, W. (1996) Venture capitalist governance and value added in four countries, Journal of Business Venturing, 11(6), 439-469. https://doi.org/10.1016/S0883-9026(96)00052-3
- Sapienza, H. J., De Clercq, D. and Sandberg, W.R. (2005) Antecedents of international and domestic learning effort, Journal of Business Venturing, 20(4), 437-457. https://doi.org/10.1016/j.jbusvent.2004.03.001
- Schwienbacher, A. (2009) Venture Capital Exits, Companion to Venture Capital, Wiley/Blackwell.
- Sorenson, O. and Stuart, T.E. (2001) Syndication networks and the spatial distribution of venture capital investments, American Journal of Sociology, 106(6), 1546-1588. https://doi.org/10.1086/321301
- SEBI (2015) Alternate capital raising platform from http://www.sebi.gov.in/cms/sebi_data/attachdocs/1427713523817.pdf.
- Venture Intelligence (2014). Database on Private Company Financials, Transactions & Valuations for India. http://www.ventureintelligence.com
- Wooldridge, J. (2012) Introductory Econometrics: A Modern Approach, Cengage Learning.
- Zarutskie, R. (2010) The role of top management team human capital in venture capital markets: Evidence from first-time funds, Journal of Business Venture, 25(1), 155-172. https://doi.org/10.1016/j.jbusvent.2008.05.008