Greenhorns, Yankees and Cosmopolitans: Venture Capital, Ipos, Foreign Firms & U.S. Markets
32 Pages Posted: 14 May 2001
Black and Gilson have argued that "venture capital can flourish especially - and perhaps only - if the venture capitalist can exit from a successful portfolio company through an initial public offering (IPO), which requires an active stock market." But nothing in the Black and Gilson analysis requires that the exit option be a domestic capital market. In this Article, I use the phenomenon of Israeli high tech companies going public on the NASDAQ as a case study to explore the connection between a venture capital industry and domestic capital markets in a world of global capital and product markets.
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