Venture capital not essential for IPO success, new study reveals.
The study looked at how many companies grow without venture capital funding, even though most research focuses on those that do get VC money. By analyzing data on all US businesses, the researchers found that firms with potential for growth are similar, whether they get VC funding or not. They also found that firms that raise venture capital have similar characteristics to those that grow without it. Additionally, the study suggests that the maximum return on venture capital investment is around 600%.