A law and finance analysis of venture capital exits in emerging markets

Abstract

We analyze a sample of 336 venture capital exits from 12 Asia -Pacific countries: Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand. The data also comprise these countries’ venture capitalists’ investments in U.S.-based entrepreneurial firms. We consider the determinants of the types of entrepreneurial firms receiving venture capital finance, the choice of exit vehicle (IPO, acquisition, secondary sale, buyback and write -off), the extent of exit (full or partial), and the determinants of the IRRs with Heckman controls for selection effects. Among other things, the data highlight the importance of legal and institutional factors in the disposition of venture capital investments. Show more