Venture Capital Reputation, Post-IPO Performance, and Corporate Governance

We examine the association of a venture capital (VC) firm's reputation with the post-initial public offering (IPO) long-run performance of its portfolio firms. We find that VC reputation measured by the past market share of VC-backed IPOs, has significant positive as-formance sociations with long-run firm performance measures. While more reputable VCs initially select better-quality firms, more reputable VCs continue to be associated with superior long-run performance, even after controlling for VC selectivity. We find that more rep- utable VCs exhibit more active post-involvement in the corporate governance of their portfolio firms, and this contined VC involvement positively influences post-IPO firm performance.