The appointment of VC directors on the boards of listed firms can be understood as an important mechanism in promoting innovation and growth.
It is conventional wisdom that venture capitalists (VCs) do not always perceive initial public offerings (IPOs) as being in the best interest of their portfolio companies. As fundraising growth is limited by capital overhang and diminishing return multiples, VCs increasingly induce entrepreneurs to sell their companies to strategic investors. Are these developments in fundraising and growth coincidental?
The main theme in this article is the growing symbiosis between VCs and corporations as a reflection of these new market circumstances. Note that the involvement of corporations in the VC industry is not…
