International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 3 (May-June 2025) Submit your research before last 3 days of June to publish your research paper in the issue of May-June.

UNDERSTANDING THE ROLE OF VENTURE CAPITAL BACKING IPO SHORT AND LONG TERM SUCCESS

Author(s) Mr. Vikash Krishnan G P S, Mr. Manikandan A, Dr. Thirunavukkarasu T, Dr. Kowsalya S
Country India
Abstract ABSTRACT:
This study explores the role of venture capital (VC) backing in influencing the short-term and long-term success of companies undergoing Initial Public Offerings (IPOs). Venture capitalists often provide not only funding but also strategic guidance, governance support, and market credibility to startups, potentially affecting IPO outcomes. In the short term, VC-backed firms may benefit from enhanced investor confidence, leading to higher initial valuations and stronger listing performance. In the long term, the involvement of reputable VC firms may correlate with sustained operational growth, better corporate governance, and lower failure rates due to their continued oversight and network support. However, VC involvement may also create pressures for early exit or aggressive growth strategies that could impact post-IPO stability. Through a review of existing literature and empirical evidence, this paper evaluates the extent to which venture capital participation serves as a signal of quality and assesses its implications for stakeholders in both the immediate aftermarket and over a multi-year horizon.
Keywords Venture Capital, Initial Public Offerings (IPOs), IPO Performance, Short-term Success, Long-term Success
Field Business Administration
Published In Volume 7, Issue 3, May-June 2025
Published On 2025-06-03
DOI https://doi.org/10.36948/ijfmr.2025.v07i03.46824
Short DOI https://doi.org/g9m273

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