Heterogeneous VC Investment and Venture Exit: Analyzing the Impact of Investment Amount, Frequency, and Duration

Abstract

 In the study, we aim to shed light on the factors that play a role in shaping the outcome of ventures backed by VC, thereby aiding in fostering a more all-encompassing comprehension of the intricacies involved in corporate investments and ventures. Taking a VC lens, we examine the antecedences of venture exit in terms of VC investment amount, frequency, and duration. Our findings show that the amount, frequency, and duration of VC's investment all significantly affect the successful exit of ventures. This suggests that VC could adjust its investment behavior by maintaining a longer investment time, increasing the amount of investment, and increasing the frequency of investment to achieve the result of prompting the exit of ventures.