An Index For Venture Capital, 1987-2003
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Min Hwang
In this paper we build an index of value for venture capital. Our approach overcomes the problems of intermittent, infrequent pricing of private company deals by using a repeat valuation model to build the index, and it corrects for selection bias in the reporting of values. We use a unique data set from Sand Hill Econometrics which reports 50,734 funding events, which include the contemporaneous valuations of 9,092 private equity firms disclosed 19,208 times over almost 17 years. The resulting index measures the return and risk for venture capital. Its covariance with other asset classes from 1987 through 2003 enables us to explore the role of venture capital in diversified portfolios during a period of increased importance of venture capital in the economy.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
- Contributions Article
- Cash Constraints and Business Start-Ups: Deutschmarks Versus Dollars
- On-the-Job Learning, Firing Costs and Employment
- The Effect of the Nonprofit Motive on Hospital Competitive Behavior
- Electoral Competition and Redistribution with Rationally Informed Voters
- The Environmental Kuznets Curve: Exploring a Fresh Specification
- Uncertain R&D and the Porter Hypothesis
- Do Economists Recognize an Opportunity Cost When They See One? A Dismal Performance from the Dismal Science
- A Theory of Health Disparities and Medical Technology
- Entry-Level Products with Consumer Learning
- A Test for Collusion between a Bidder and an Auctioneer in Sealed-Bid Auctions
- Fatalistic Tendencies: An Explanation of Why People Don't Save
- Adjustment Costs and Irreversibility as Determinants of Investment: Evidence from African Manufacturing
- An Index For Venture Capital, 1987-2003
- Environmental Information Provision as a Public Policy Instrument
- Competition Policy and Exit Rates: Evidence from Switzerland
- Political Variables as Instruments for the Minimum Wage
