The price of initial public offerings (IPOs) can be influenced by investors wanting to exit investments to fund new ventures. This can lead to higher underpricing during "hot issue" periods. Venture capital-backed IPOs are less underpriced than non-venture capital-backed ones in normal times, but more underpriced during hot periods. The level of underpricing is also affected by the relationship between investors and firm managers. Venture capitalists, who often deal with more severe issues in this relationship, underprice IPOs less in normal times but more during hot periods.