An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns
Venture Capital (VC) finding and Initial Public offering (IPO) are amongst the most major financing events for highly growing companies and given also the importance of founders to the entrepreneurial process and the importance of their financial gain from the companies they founded, this research e...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/37765/ |
| _version_ | 1848795528614117376 |
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| author | Al-Gunaid, Mohammed Abdullah Qasem |
| author_facet | Al-Gunaid, Mohammed Abdullah Qasem |
| author_sort | Al-Gunaid, Mohammed Abdullah Qasem |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Venture Capital (VC) finding and Initial Public offering (IPO) are amongst the most major financing events for highly growing companies and given also the importance of founders to the entrepreneurial process and the importance of their financial gain from the companies they founded, this research examined the impact that the VC and IPO amounts have on the founders’ financial gain and the imparity of that impact when compared to the effects on the companies as whole. This research selected 48 United States companies that went for an IPO in the year 2013 to be the sample of this empirical study. To select these 48 companies, all 220 companies that went for an IPO in 2013 had to be examined and pick the companies that had VC involvement, had identified individual founders that stayed until the IPO and were United States-based. Those were the only criteria of exclusion that led me to the sample of 48 companies. The results showed that the founders’ financial return has a negative relationship with the VC/IPO ratio but not significant relationship with the absolute amount of VC funding. The results also showed that for VC amount and VC/IPO ratio the impact on founders’ return were different from the impact on companies’ market capitalisation as a whole. |
| first_indexed | 2025-11-14T19:33:31Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-37765 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:33:31Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-377652017-10-19T17:17:46Z https://eprints.nottingham.ac.uk/37765/ An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns Al-Gunaid, Mohammed Abdullah Qasem Venture Capital (VC) finding and Initial Public offering (IPO) are amongst the most major financing events for highly growing companies and given also the importance of founders to the entrepreneurial process and the importance of their financial gain from the companies they founded, this research examined the impact that the VC and IPO amounts have on the founders’ financial gain and the imparity of that impact when compared to the effects on the companies as whole. This research selected 48 United States companies that went for an IPO in the year 2013 to be the sample of this empirical study. To select these 48 companies, all 220 companies that went for an IPO in 2013 had to be examined and pick the companies that had VC involvement, had identified individual founders that stayed until the IPO and were United States-based. Those were the only criteria of exclusion that led me to the sample of 48 companies. The results showed that the founders’ financial return has a negative relationship with the VC/IPO ratio but not significant relationship with the absolute amount of VC funding. The results also showed that for VC amount and VC/IPO ratio the impact on founders’ return were different from the impact on companies’ market capitalisation as a whole. 2016 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/37765/1/AlGunaidMohammedAbdullahQasem-37765.pdf Al-Gunaid, Mohammed Abdullah Qasem (2016) An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns. [Dissertation (University of Nottingham only)] |
| spellingShingle | Al-Gunaid, Mohammed Abdullah Qasem An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns |
| title | An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns |
| title_full | An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns |
| title_fullStr | An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns |
| title_full_unstemmed | An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns |
| title_short | An Empirical Study on the Impact of Venture Capital Funding on Founders Financial Returns |
| title_sort | empirical study on the impact of venture capital funding on founders financial returns |
| url | https://eprints.nottingham.ac.uk/37765/ |