The IPO as an Exit Strategy for Venture Capitalists: Regional Lessons from Canada with International Comparisons

Handbook of Research on IPOs, Mario Levis and Silvio Vismara, eds., Edgar Elgar, 2012.

45 Pages Posted: 30 Dec 2012

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Sofia Johan

Florida Atlantic University - Finance; Tilburg Law and Economics Center (TILEC)

Date Written: October 24, 2012

Abstract

In this chapter, we present worldwide VC investment, exit and initial public offering (IPO) data up to 2010. Also, we focus on investment activity at the local level with reference to data from Canada and the U.S. We provide statistics which highlight how differences in investment and IPO exit patterns are important for regional prosperity, with particular reference to Canada and Ontario. We consider the VC market in Ontario, Canada, and abroad, drawing on extensive data from the Thompson Financial SDC VentureXpert database. We consider the amount and structure of VC investment in Ontario and the sources of capital, as well as exits from investments. Comparisons are made in reference to economic conditions in the different jurisdictions. We identify empirical proxies for value-added provided by VCs in different regions that have been well-established in the literature as leading to business innovation and commercialization. These proxies include, for example, staging frequency, syndication, and portfolio sizes.

Keywords: Venture Capital, IPO

JEL Classification: G24, G28

Suggested Citation

Cumming, Douglas J. and Johan, Sofia A., The IPO as an Exit Strategy for Venture Capitalists: Regional Lessons from Canada with International Comparisons (October 24, 2012). Handbook of Research on IPOs, Mario Levis and Silvio Vismara, eds., Edgar Elgar, 2012.. Available at SSRN: https://ssrn.com/abstract=2194557

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Sofia A. Johan

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

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