The Clash Between Serial Entrepreneurs and Venture Capitalists on Valuation and Timing

What is the effect of mixing serial entrepreneurs with venture capitalists especially in the case of high-growth technology IPO firms? This study advances our knowledge of venture capitalists and serial entrepreneurs. The study examines the interplay between venture capitalists and serial entrepreneurs on IPO firm valuation and on the speed of IPO. Data is hand collected from US IPO firm prospectuses. We find that venture capital backing does impact IPO valuation positively, and as expected accelerates the time to IPO. We also find that the moderator variable, serial entrepreneurs, also leads to even higher valuations at IPO but tends to slow down the process.