Choosing Between Promising and Crowded Industries: How Does the Venture Capital Industry Fare in Each?
The City College of The City University of New York - Department of Economics; The University of Pennsylvania - Department of Economics
University of Pennsylvania
PIER Working Paper No. 04-044
Incredible profits from Initial Public Offerings have been highly emphasized. This paper refutes these profits as being standard and supports the market's return to normalcy by stratifying annual and cumulative returns for different industries: Biotechnology; Communications; Computer Related companies; Medical, Health and Life Science industries; Non-High-Technology companies; and Semiconductor and Other Electronics Industries. This paper tests whether an entrepreneur has greater potential for success in continually promising fields or whether one should slug it out in a risky but potentially very rewarding industry. A comparison of success is made between already competitive businesses and those, which are young and growing.
Number of Pages in PDF File: 25
Keywords: Initial public offering, venture capital, annualized and cumulative rates of return, Information Technology, Medical, Health and Life Science, Non-High Technology, Biotechnology, Communications, Computer Industry, Semiconductor and Other Electronics Industries
JEL Classification: C12, D81, D92, E22, G12, G24, G3, M13, M21, O16working papers series
Date posted: December 17, 2004
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