Serial Entrepreneurs Generate 30% Higher Returns for Investors, Report Says
According to a new report by Israeli market research firm IVC, investments in companies co-founded by serial entrepreneurs are less risky and more likely to generate profitable returns
Israeli startups with serial entrepreneurs as founders achieved a 30% higher returns in initial public offerings (IPOs) and merger and acquisition deals compared to startups founded by newcomer entrepreneurs, according to a new report by Israel-based market research firm IVC Research Center Ltd. which was published on Wednesday.
Serial entrepreneurs are often hailed by investors as a safer “bet” due to their experience and track record.
To test this hypothesis, IVC analyzed more than 850 IPOs and M&A deals of Israel-linked companies and found that companies with serial entrepreneurs at the helm had an average return multiple of 6.16, 30% higher than that of startups headed by “novice” entrepreneurs, with an average multiple of 4.79.