Venture capital: how it works, exit through IPO, sequential investment and innovation financing.

Summary Research and innovation are two essential components of any economy and their financing is a major concern for governments and entrepreneurs. The capital needed to develop these activities is generally important and the financing mode by venture capital companies seems to be the adequate solution, mainly for small companies that do not have a sufficiently solid financial base. This thesis is part of this context and aims to explore different aspects of this financing method. First, it examines the exit phase of the venture capitalist of the affiliated company and establishes a theoretical model that determines the optimal timing of the IPO in an environment where the generated flows are uncertain. This model takes into account the initial undervaluation, as well as the holding period. Then, it highlights a second theoretical model that aims to determine the optimal thresholds that trigger the investment decisions of the venture capitalist. Finally, this thesis studies the effect of the presence of a venture capitalist on the innovative activity within the companies, as well as the impact of innovation on the behavior of these investors towards these companies.