Choosing between Promising and Crowded Industries: How Does the Venture Capital Industry Fare in Each?

25 Pages Posted: 17 Dec 2004

See all articles by Yochanan Shachmurove

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics; The University of Pennsylvania - Department of Economics

Amir Shachmurove

University of Pennsylvania

Date Written: December 2004

Abstract

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.

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, O16

Suggested Citation

Shachmurove, Yochanan and Shachmurove, Amir, Choosing between Promising and Crowded Industries: How Does the Venture Capital Industry Fare in Each? (December 2004). PIER Working Paper No. 04-044. Available at SSRN: https://ssrn.com/abstract=637222 or http://dx.doi.org/10.2139/ssrn.637222

Yochanan Shachmurove (Contact Author)

City University of New York, CUNY City College of New York - Department of Economics ( email )

160 Convent Avenue
New York, NY 10031
United States
212-650-6202 (Phone)

The University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
215-898-1090 (Phone)
215-573-2057 (Fax)

Amir Shachmurove

University of Pennsylvania ( email )

Philadelphia, PA 19104-6370
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1,634
Abstract Views
5,257
rank
10,853
PlumX Metrics