The Risk and Return of Venture Capital

By John H. Cochrane. 2001

921 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/ea0b700ac7e9718f3b230984aa91daeb3acce044

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Citations in the corpus

A New Method to Estimate Risk and Return of Nontraded Assets from Cash Flows: The Case of Private Equity Funds (2012, positive): “Since Jensen’s (1968) time-series regression approach to determine the α and β of a mutual fund, a large literature has been dedicated to refining measures of risk and return (see Cochrane (2005a) for an overview).”
The performance of university spin-offs: an exploratory analysis using venture capital data (2009, methodology): “6 Recent empirical work using the VentureOne data includes Gompers and Lerner (2000), Cochrane (2005) , Gompers et al. (2005), and Zhang (2006, 2007).”
A Review and Road Map of Entrepreneurial Equity Financing Research: Venture Capital, Corporate Venture Capital, Angel Investment, Crowdfunding, and Accelerators (2017, background): “Venture investments do not often evenly Drover et al. / Equity Financing Review 1845 yield significant investment returns, and data suggest only a few investments generate the lion’s share of industry returns (e.g., Cochrane, 2005).”
Subsidies, financial constraints and firm innovative activities in emerging economies (2017, background): “7 Another source for financing innovation activities (in developed markets) is venture capital (Cochrane 2005).”
Risk-Adjusting the Returns to Venture Capital (2015, positive): “The magnitudes of the GPME estimates are big, but they are roughly consistent with the arithmetic alphas that Cochrane (2005) (32% annualized) and Korteweg and Sorensen (2010) (3.5% monthly) obtain by combining a log-normal model with a selection model for endogenous funding and exit events.”
Does it Pay to Invest in Art? A Selection-Corrected Returns Perspective (2013, methodology): “Our paper is most closely related to Cochrane (2005) and Korteweg and Sorensen (2010), who consider venture capital returns, and Korteweg and Sorensen (2014), who examine the distribution of loan-to-value ratios in residential real estate.”
Informational Holdup and Performance Persistence in Venture Capital (2014, neutral): “Cochrane (2005), Korteweg and Sørensen (2008),Quigley and Woodward (2003), and Gottschalg and Phalippou (2007) estimate the”
Risk and Return Characteristics of Venture Capital-Backed Entrepreneurial Companies (2010, methodology): “Cochrane (2005) reports bootstrapped standard errors that are consistently an order of magnitude greater than the asymptotic ones, suggesting that this is not a trivial concern.”
Specialization and Success: Evidence from Venture Capital (2009, background): “Investments that are labeled as successes above may have widely different performance, with some generating spectacular returns and others much more modest ones (for evidence regarding the skewness of venture capital returns, see Cochrane (2005)).”
Was There Too Little Entry During the Dot Com Era (2007, result): “As an alternative, we calculate the IRR for a set of GBF firms and compare it to estimated rates of the return for typical venture capital investments (Cochrane 2005).”
The Financing of R&D and Innovation (2009, positive): “Cochrane (2005) estimates the returns of venture capital investments. He notes that many analyses of returns focus only on investments that go public, get acquired, or go out of business. Such calculations may produce biased returns by concentrating only on the portfolio’s ‘winners’ and outright fai”
IPOs, trade sales and liquidations: Modelling venture capital exits using survival analysis (2007, positive): “In addition to stage finance, several studies document the widespread use of contractual arrangements that guarantee the venture capitalist explicit intervention rights, also regarding exit issues (Gompers, 1997, Cumming, 2002, and Kaplan and Stromberg, 2003). More generally, these rights allow the ”
Liquidity Risk and Venture Capital Finance (2005, positive): “With the different right-hand-side variables, our pseudo R2 values are not very large (less than 5%), but this is quite consistent with other papers in venture finance that use similar US industry data (for example, Cochrane (2005) estimates the determinants of US VC returns and explains at most 1% ”