Biotech venture capital investments in public equities and performance

2017 ◽  
Vol 22 (4) ◽  
Author(s):  
Hans Lennart Jeppsson
Keyword(s):  
Venture Capital ◽  
Hedge Funds ◽  
Venture Capitalists ◽  
Investment Horizon ◽  
Capital Investments ◽  
Public Firms ◽  
High Loss ◽  
Dollar Amount ◽  
Venture Capital Investments

This study examines a large sample of venture investments in public equities (VIPEs) in the biotechnology and pharmaceutical industry over the period 1995-2014. The results of the study are threefold. First, and contrary to widely held beliefs, there has been no significant increase in the number of VIPEs over time. In fact, both in terms of dollar amount as well as the number of VIPE transactions have actually went down post the record year in 2009. Second, this study documents that returns profiles from the public venture capital market share many similarities to the returns in the private VC market: few big winners, but overall a high loss rate. Approximately seven investments out of ten in public firms generate a loss. Third, the analysis of private investments in public equities shows that venture capitalists outperform other competitors, such as hedge funds and mutual funds. From a management perspective, venture investments in public equity provide several benefits including providing an additional source of potential funding, aligning the investment horizon of venture capitalists with other long-term investors, certifying the quality of the firm and contributing to the long-term success.

Venture Capital Investment in Orthopaedics: Has the Landscape Changed over the Past Two Decades (2000–2019)?

2021 ◽  
pp. 155335062110310
Author(s):  
Thomas B. Cwalina ◽  
Tarun K. Jella ◽  
Alexander J. Acuña ◽  
Linsen T. Samuel ◽  
Atul F. Kamath
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Third Party ◽  
Annual Growth Rate ◽  
Capital Investments ◽  
Compound Annual Growth Rate ◽  
Venture Capital Investment ◽  
The Past ◽  
Dollar Amount ◽  
Venture Capital Investments

Background. Innovations in orthopaedic technologies often require significant funding. Although an increasing trend has been observed for third-party investments in other medical fields, no study has examined the influence of venture capital (VC) funding in orthopaedics. Therefore, this study analyzed trends in VC investments related to the field of orthopaedic surgery, as well as the characteristics of recipients of these investments. Methods. Venture capital investments into orthopaedic-related businesses were reviewed from 2000 to 2019 using Capital IQ, a proprietary intelligence platform documenting financial investments. Metrics categorized were investments by year, investment amount, and subspecialty domain as per the American Academy Orthopaedic Surgeons website. The compound annual growth rate (CAGR) for both quantity and dollar amount of investments was calculated over the study period and the two decade-long periods (2000–2009 and 2010–2019). Results. Over two decades, 673 VC investments took place, involving a total of US$3.5 billion. Both the number and dollar value of investments were greater in the second decade (440, US$1.9 billion), compared to the first decade (233, US$1.6 billion). Both quantity and dollar amount of VC investments grew over the first decade, with a CAGR 9.53% and 4.97%, respectively. However, investment growth declined in the latter decade. The largest and most frequent investments took place within spine surgery and adult reconstruction. Conclusion. An initially rising trend in VC investment in orthopaedic-related businesses may have plateaued over the past decade. These findings may have important implications for continued investment into orthopaedic innovations and collaboration between the surgical community and private sector.

VENTURE CAPITAL INVESTMENTS IN EMERGING ECONOMIES: AN EMPIRICAL ANALYSIS

2005 ◽  
Vol 10 (03) ◽  
pp. 253-269 ◽  
Author(s):  
MEDHI SALEHIZADEH
Keyword(s):  
Stock Market ◽  
Emerging Economies ◽  
Emerging Market ◽  
Capital Inflows ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Industrialized Countries ◽  
Micro Level ◽  
Venture Capital Investments

In the international arena an increasing number of entrepreneurs and venture capitalists have succeeded, yielding both micro-level financial rewards and macro-level prosperity and improved economic conditions for many industrialized countries. The next logical "group," with a potential to reap such benefits, is expected to be the emerging economies. This study tabulates and analyzes an emerging market VC-investment dataset, and then identifying and testing a number of independent economic and financial factors that explain such investments for a selected group of emerging countries. Based on 1990-2003 data covering 19 nations, the regression results show four of the five proposed variables, namely GDP per capita, long-term capital inflows, stock market listings, and a measure of stock market correlations, to be significant in explaining VC investments.

scholarly journals Which criteria matter most in the evaluation of venture capital investments?

2014 ◽  
Vol 21 (3) ◽  
pp. 505-527 ◽  
Author(s):  
José Carlos Nunes ◽  
Elisabete Gomes Santana Félix ◽  
Cesaltina Pacheco Pires
Keyword(s):  
Venture Capital ◽  
Early Stage ◽  
Management Team ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Share Capital ◽  
Content Type ◽  
The Impact ◽  
Venture Capital Investments ◽  
Public Share

Purpose – The purpose of this paper is to identify the importance assigned to the various criteria used by the Portuguese venture capitalists (VCs) to evaluate and select early stage venture capital (VC) projects. Design/methodology/approach – The data were collected through a questionnaire answered by 20 Portuguese VCs. The authors use descriptive statistics techniques and non-parametric tests to identify the most valued criteria and test differences in the importance assigned to the criteria of several types of VCs and investments. Findings – The study reveals that personality and experience of the entrepreneur and of the management team are the most valued groups of criteria. VCs with a majority of private share capital value more the personality of the entrepreneur and management team than the companies with a majority of public share capital. Additionally, the VCs that did not yet internationalize consider the personality of the entrepreneur and management team and the financial aspects, to be more important than the VCs that have already expanded abroad. Originality/value – It provides evidence on the VCs behavior in a small VC market. Since most of the existing literature on this area refer to large VC markets, the present study is important to investigate whether the conclusions reached by the previous studies can be extended to a small VC market. Also, this study is a contribution to the literature on the internationalization of VCs and it is the first study that explores the impact of the VCs being internationalized on the value given to the various selection criteria of early stage VC projects.

scholarly journals Did Venture Capital Promote Innovation in India?

2019 ◽  
Vol 9 (1) ◽  
pp. 2409-2413
Keyword(s):  
Venture Capital ◽  
Relevant Literature ◽  
Secondary Data ◽  
Innovative Technology ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Recent Past ◽  
Indian Context ◽  
Venture Capital Firms ◽  
Venture Capital Investments

The study exhorts to ascertain the general perception that Venture Capitalists fund innovative technology projects in the Indian context using primary and secondary data. A structured questionnaire was used to elicit response from 101 (sample) out of 134 (Population) SEBI registered and active Venture Capital firms in the recent past. The study analyses the mode of funding by Venture Capital firms and their geographical dispersion. The study ascertains whether Venture Capital firms have enabled innovation in the Indian context during the recent past or not. Finally, the study concludes that Venture Capital Investments have not been very enabling for innovative technologies in the Indian context, which is contrary to the relevant literature available in the context of USA and other developed nations.

A CONFIGURATIONAL PERSPECTIVE ON VENTURE CAPITAL INVESTMENTS

2016 ◽  
Author(s):  
Uwe Messer ◽  
Alexander Leischnig ◽  
Sabrina Thornton
Keyword(s):  
Venture Capital ◽  
Capital Investments ◽  
Venture Capital Investments
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