Do Venture Capitalists Add Value? A Comparative Study between Singapore and Us

Posted: 1 Dec 2009

See all articles by Clement K. Wang

Clement K. Wang

affiliation not provided to SSRN

Kangmao Wang

Zhejiang University - School of Business Administration

Qing Lu

affiliation not provided to SSRN

Date Written: 2002

Abstract

This study provides a comprehensive overview of venture capital (VC) funds in Singapore. By examining the effects on their public listed investees, a profile of VC-backed listed companies in Singapore is analysed. It is found that value added of VCs to their investees can be attributed in several aspects: their equity stake taking, board seat, and especially in their timing of initial public offerings (IPOs) to market heights. The findings in the paper have several implications. Although the role of VC firms in Singapore is important in creating public companies, their participation with respect to their investees still lags behind their counterparts in the US. Their value added in management functions needs to be emphasized so that they can contribute more to the investees and thus, enhance their own returns. For companies seeking VC support or already preparing IPO with VC support, they should know what VCs can and cannot provide. For instance, they can expect the VCs to help in the timing of IPOs, but in management support, the help provided by the VCs in Singapore is limited compared to their US counterparts.(Publication abstract)

Keywords: IPO timing, Information & communication technologies, Value maximization, Venture capital, Initial public offerings (IPO), Firm management, Emerging markets, High technology industries

Suggested Citation

Wang, Clement K. and Wang, Kangmao and Lu, Qing, Do Venture Capitalists Add Value? A Comparative Study between Singapore and Us (2002). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1513765

Clement K. Wang (Contact Author)

affiliation not provided to SSRN

No Address Available

Kangmao Wang

Zhejiang University - School of Business Administration ( email )

20 Yugu Road
Hangzhou 310027
China
86-571-8796-8455 (Phone)
86-571-8796-8455 (Fax)

Qing Lu

affiliation not provided to SSRN

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