Should Crowdfunding Investors Rely on Lists of the Best Private Companies?

22 Pages Posted: 31 Oct 2014

See all articles by Marlin R.H. Jensen

Marlin R.H. Jensen

Auburn University

Beverly B. Marshall

Auburn University Harbert College of Business

John S. Jahera

Auburn University - Harbert College of Business

Date Written: October 29, 2014

Abstract

The Wall Street Journal (WSJ) annually publishes a list of the fifty “best” private companies that are funded by venture capitalists. Given the important role venture capitalists play in fostering the growth and development of relatively young firms, it is important to examine the returns to venture capitalists and investors when these firms go public or are acquired. Equity crowdfunding will soon allow all investors to invest in companies before they go public. It is therefore worthwhile to examine whether such lists of best companies suggest better investment opportunities for these individual investors. We examine the financial performance of private venture capital funded firms on the WSJ list up to the public offering or acquisition to determine expected performance in these types of emerging growth companies by individual investors in the post-JOBS act era.

Keywords: Crowdfunding, IPOs, Emerging Growth Companies

JEL Classification: G32, G12

Suggested Citation

Jensen, Marlin R.H. and Marshall, Beverly B. and Jahera, John S., Should Crowdfunding Investors Rely on Lists of the Best Private Companies? (October 29, 2014). Available at SSRN: https://ssrn.com/abstract=2516511 or http://dx.doi.org/10.2139/ssrn.2516511

Marlin R.H. Jensen (Contact Author)

Auburn University ( email )

415 West Magnolia Avenue
Auburn, AL 36849
United States
334-844-3006 (Phone)

Beverly B. Marshall

Auburn University Harbert College of Business ( email )

415 Magnolia Ave.
Auburn, AL 36849
United States

John S. Jahera

Auburn University - Harbert College of Business ( email )

415 Magnolia Ave.
Auburn, AL 36849
United States
334-844-5344 (Phone)

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