Performance of venture backed and non venture backed IPO: evidence from Canada and the UK

This study analyses data of both Ventures backed and Non-VC backed IPOs in both Canada and the UK over a ten-year period from1996 to 2005. We use value-weighted 90-days cumulative returns to test the short-term performance of IPOs, and examine whether the VC backed IPOs perform better than Non-VC backed IPOs in Canada and in the UK. In comparing the two countries we find evidence of similarities and differences between the two countries in terms of the short-term performance and industry selection. In the case of industry specific firms there appear to be some strong relationship to Performance