Vipe Financing: Venture (Capital) Investments in Public Equity

Susan Chaplinsky, George David Haushalter

Research output: Chapter in Book/Report/Conference proceedingChapter

3 Citations (Scopus)

Abstract

Venture investments in public equities (VIPEs) are a subset of private investments in public equities (PIPEs), which are sales of privately placed equity and equity-linked securities in companies with publicly listed shares. This article examines a large sample of VIPEs and attempts to answer the following questions: Has there been a significant increase in VIPEs over time? What are the typical characteristics of the firms receiving funding from VIPEs? Which securities and terms do venture capital firms (VCs) most frequently use? How do the public firms receiving funding from VCs perform after the issue? Because the cash flow rights obtained in PIPEs primarily pay off based on the issuer's postissue stock performance, the last question addresses how successful are the companies that VCs fund, and, to a large extent, how successful are the VCs themselves.

Original languageEnglish (US)
Title of host publicationThe Oxford Handbook of Venture Capital
PublisherOxford University Press
ISBN (Electronic)9780199968732
ISBN (Print)9780195391596
DOIs
StatePublished - Sep 18 2012

Fingerprint

Equity
Venture capital financing
Capital investment
Venture
Funding
Private investment
Cash flow rights
Stock performance
Public firm
Venture capital firms
Pay equity

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

Chaplinsky, S., & Haushalter, G. D. (2012). Vipe Financing: Venture (Capital) Investments in Public Equity. In The Oxford Handbook of Venture Capital Oxford University Press. https://doi.org/10.1093/oxfordhb/9780195391596.013.0008
Chaplinsky, Susan ; Haushalter, George David. / Vipe Financing : Venture (Capital) Investments in Public Equity. The Oxford Handbook of Venture Capital. Oxford University Press, 2012.
@inbook{a1701184cd5d4a3399b0bcdd616bc023,
title = "Vipe Financing: Venture (Capital) Investments in Public Equity",
abstract = "Venture investments in public equities (VIPEs) are a subset of private investments in public equities (PIPEs), which are sales of privately placed equity and equity-linked securities in companies with publicly listed shares. This article examines a large sample of VIPEs and attempts to answer the following questions: Has there been a significant increase in VIPEs over time? What are the typical characteristics of the firms receiving funding from VIPEs? Which securities and terms do venture capital firms (VCs) most frequently use? How do the public firms receiving funding from VCs perform after the issue? Because the cash flow rights obtained in PIPEs primarily pay off based on the issuer's postissue stock performance, the last question addresses how successful are the companies that VCs fund, and, to a large extent, how successful are the VCs themselves.",
author = "Susan Chaplinsky and Haushalter, {George David}",
year = "2012",
month = "9",
day = "18",
doi = "10.1093/oxfordhb/9780195391596.013.0008",
language = "English (US)",
isbn = "9780195391596",
booktitle = "The Oxford Handbook of Venture Capital",
publisher = "Oxford University Press",
address = "United Kingdom",

}

Chaplinsky, S & Haushalter, GD 2012, Vipe Financing: Venture (Capital) Investments in Public Equity. in The Oxford Handbook of Venture Capital. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780195391596.013.0008

Vipe Financing : Venture (Capital) Investments in Public Equity. / Chaplinsky, Susan; Haushalter, George David.

The Oxford Handbook of Venture Capital. Oxford University Press, 2012.

Research output: Chapter in Book/Report/Conference proceedingChapter

TY - CHAP

T1 - Vipe Financing

T2 - Venture (Capital) Investments in Public Equity

AU - Chaplinsky, Susan

AU - Haushalter, George David

PY - 2012/9/18

Y1 - 2012/9/18

N2 - Venture investments in public equities (VIPEs) are a subset of private investments in public equities (PIPEs), which are sales of privately placed equity and equity-linked securities in companies with publicly listed shares. This article examines a large sample of VIPEs and attempts to answer the following questions: Has there been a significant increase in VIPEs over time? What are the typical characteristics of the firms receiving funding from VIPEs? Which securities and terms do venture capital firms (VCs) most frequently use? How do the public firms receiving funding from VCs perform after the issue? Because the cash flow rights obtained in PIPEs primarily pay off based on the issuer's postissue stock performance, the last question addresses how successful are the companies that VCs fund, and, to a large extent, how successful are the VCs themselves.

AB - Venture investments in public equities (VIPEs) are a subset of private investments in public equities (PIPEs), which are sales of privately placed equity and equity-linked securities in companies with publicly listed shares. This article examines a large sample of VIPEs and attempts to answer the following questions: Has there been a significant increase in VIPEs over time? What are the typical characteristics of the firms receiving funding from VIPEs? Which securities and terms do venture capital firms (VCs) most frequently use? How do the public firms receiving funding from VCs perform after the issue? Because the cash flow rights obtained in PIPEs primarily pay off based on the issuer's postissue stock performance, the last question addresses how successful are the companies that VCs fund, and, to a large extent, how successful are the VCs themselves.

UR - http://www.scopus.com/inward/record.url?scp=84923454803&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84923454803&partnerID=8YFLogxK

U2 - 10.1093/oxfordhb/9780195391596.013.0008

DO - 10.1093/oxfordhb/9780195391596.013.0008

M3 - Chapter

AN - SCOPUS:84923454803

SN - 9780195391596

BT - The Oxford Handbook of Venture Capital

PB - Oxford University Press

ER -

Chaplinsky S, Haushalter GD. Vipe Financing: Venture (Capital) Investments in Public Equity. In The Oxford Handbook of Venture Capital. Oxford University Press. 2012 https://doi.org/10.1093/oxfordhb/9780195391596.013.0008