The previous theoretical literature on IPOs has been carried out under the assumption of a free s... more The previous theoretical literature on IPOs has been carried out under the assumption of a free supply of new issues, emphasizing how the valuation and magnitude of new issues can be explained by mechanisms on the demand side. This model explains grandstanding and IPO clusterings based on supply side dynamics and adverse selection between venture capitalists and their investors. We
... he interse tion b in re ses in K nd α nd de re ses in ¯RnewF his is o vious sin e high pit l ... more ... he interse tion b in re ses in K nd α nd de re ses in ¯RnewF his is o vious sin e high pit l outl y or high sh re kept y the mn ger m kes the new venture less v lu le to the pD who therefore would h ve to e rel tively more ert in out the mn ger9s qu lityD thus ttempting to de re se the risk ...
Abstract: Venture capital firms typically invest in portfolios of only a few highly correlated en... more Abstract: Venture capital firms typically invest in portfolios of only a few highly correlated enterprises. From a diversification perspective this seems suboptimal. We analyze venture capital budgeting focusing on the venture capitalist's decision to invest in correlated ...
The previous theoretical literature on IPOs has been carried out under the assumption of a free s... more The previous theoretical literature on IPOs has been carried out under the assumption of a free supply of new issues, emphasizing how the valuation and magnitude of new issues can be explained by mechanisms on the demand side. This model explains grandstanding and IPO clusterings based on supply side dynamics and adverse selection between venture capitalists and their investors. We
... he interse tion b in re ses in K nd α nd de re ses in ¯RnewF his is o vious sin e high pit l ... more ... he interse tion b in re ses in K nd α nd de re ses in ¯RnewF his is o vious sin e high pit l outl y or high sh re kept y the mn ger m kes the new venture less v lu le to the pD who therefore would h ve to e rel tively more ert in out the mn ger9s qu lityD thus ttempting to de re se the risk ...
Abstract: Venture capital firms typically invest in portfolios of only a few highly correlated en... more Abstract: Venture capital firms typically invest in portfolios of only a few highly correlated enterprises. From a diversification perspective this seems suboptimal. We analyze venture capital budgeting focusing on the venture capitalist's decision to invest in correlated ...
Uploads
Papers by Kevin Grell