Annualized and Cumulative Returns on Venture-Backed Public Companies Categorized by Industry

Authors

Amir Shachmurove, The University of Pennsylvania
Yochanan Shachmurove, The City College of The City University of New York, and The University of Pennsylvania

Abstract

This paper investigates the actual performance of 2,895 Initial Public Offerings of companies that were backed by venture capital from 1968 through 1998. It seeks to refute the myth that investors demand very high annualized and cumulative rates of return to compensate for the risks they are taking by financing ventures. In fact, it argues that, based on historical statistics, the total returns of the venture capital market are reasonable given the level of risk. This is done by concentrating on sections of various types of industries that have been supported by venture capital.

JEL Codes

G24, M13

Keywords

Venture Capital, Venture-backed, Public

Recommended Citation

Shachmurove, Amir and Shachmurove, Yochanan (2004) "Annualized and Cumulative Returns on Venture-Backed Public Companies Categorized by Industry," Journal of Entrepreneurial Finance and Business Ventures: Vol. 9: Iss. 3, pp. 41-60.
DOI: https://doi.org/10.57229/2373-1761.1064
Available at: https://digitalcommons.pepperdine.edu/jef/vol9/iss3/5