Angels More In Tune With IPO Companies Than VCs, Study Says

Angels More In Tune With IPO Companies Than VCs, Study Says

Original Publication Date: 07/23/2009The New York Times - Now, researchers at the University of New Hampshire's Center for Venture Research have refined the thesis to suggest that underpricing is less likely if a company is backed by wealthy individuals, called angels. This is because the angels are more likely than VCs to sell shares as part of the IPO. Venture investors generally claim any market gains when they sell or distribute their stakes after the six-month lockup.