The impact of venture capital backing on the post-IPO performance of FemTech firms in the US

Ciambrone, Costanza Vittoria Maria

http://hdl.handle.net/10400.14/56200

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Authors

Ciambrone, Costanza Vittoria Maria

Advisor(s)

Shuwaikh, Fátima

Abstract(s)

This dissertation examines the role of venture capital (VC) in shaping the post-initial public offering (IPO) performance of FemTech firms in the United States. The aim is to ascertain whether VC backing provides certification benefits that enhance post-IPO results and whether such effects intensified during the COVID-19 pandemic. The research analyses 45 FemTech IPOs completed between 1995 and 2023, identified through healthcare classifications and FemTech-specific keyword searches. Performance is evaluated using cumulative abnormal returns (CAR) and buy-and-hold abnormal returns (BHAR) over 3- , 6-, and 12-month intervals. Statistical analyses include t-tests and ordinary least squares regressions, controlling for firm size, age, profitability, R&D intensity, and pandemic timing. Findings suggest that VC-backed FemTech firms outperform their non-VC-backed counterparts in the short to medium term, with CARs showing statistically significant gains at 12 months. However, BHAR analysis indicates long-term underperformance, implying that certification benefits do not guarantee sustained value. The moderating effect of COVID-19 appears limited, with only marginal evidence of stronger certification effects during the crisis. The dissertation concludes that while VC support enhances early market confidence, it does not ensure long-term success. By focusing on the less explored FemTech sector, this study contributes new empirical insights to IPO and VC literature and offers practical guidance for investors, entrepreneurs, and policymakers involved in women's health innovation.

Esta dissertação analisa o impacto do capital de risco (venture capital, VC) no desempenho pós- oferta pública inicial (IPO) de empresas FemTech nos Estados Unidos. O objetivo é verificar se o apoio de VC gera benefícios de certificação que melhoram os resultados após o IPO e se tais efeitos se intensificaram durante a pandemia de COVID-19. O estudo abrange 45 IPOs realizados entre 1995 e 2023, identificados por classificações do setor de saúde e termos específicos de FemTech. O desempenho foi medido por retornos anormais acumulados (CAR) e retornos anormais de compra e manutenção (BHAR) em 3, 6 e 12 meses. As análises incluíram testes t e regressões de mínimos quadrados ordinários, controlando tamanho, idade, lucratividade, intensidade em P&D e pandemia. Os resultados mostram que empresas apoiadas por VC superam as não apoiadas no curto e médio prazo, com ganhos significativos em CAR aos 12 meses. Contudo, a análise de BHAR aponta para baixo desempenho no longo prazo, indicando que os benefícios iniciais não garantem valor sustentado. O impacto da COVID-19 foi limitado, com apenas evidências marginais de reforço da certificação. Conclui-se que o apoio de VC aumenta a confiança inicial do mercado, mas não assegura sucesso duradouro. Este estudo, ao focar no setor FemTech, ainda pouco explorado, amplia a literatura sobre IPOs e capital de risco e oferece orientações a investidores, empreendedores e formuladores de políticas em saúde da mulher.