Structuring Deals And Governance After The IPO: Entrepreneurs And Venture Capitalists In High Tech Start-Ups

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
David Williams, Professor of Healthcare Management (Creator)
Appalachian State University (ASU )
Web Site:

Abstract: In an effort to better understand the effects of venture capital investment on selected firm governance and financing structures, we examined the post-IPO experiences of 190 biotechnology and healthcare firms (see appendix). Our study revealed that in virtually all cases, the involvement of venture capitalists reduced the role of the founder-entrepreneur in strategic decision making. This was illustrated by the larger proportion of outside directors when venture capitalists invested and the smaller proportion of entrepreneurs who remained officers or inboard positions after the IPO. We also found that venture capitalists rarely invested alone, and preferred to structure deals in which venture capital partners share both risks and rewards.

Additional Information

Williams, D., Duncan, W., & Ginter, P. (2006). Structuring deals and governance after the IPO: Entrepreneurs and venture capitalists in high tech start-ups, Business Horizons, Volume 49, Issue 4, July–August 2006, Pages 303-311. Publisher version of record available at:
Language: English
Date: 2006
Corporate governance, Entrepreneurs, Initial public offerings (IPOs), Venture capitalists

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