Bienz, Carsten; Walz, Uwe - Center for Financial Studies - 2008
Theorists argue that exit rights can mitigate hold-up problems in venture capital. Using a hand-collected data-set of … venture capital contracts from Germany we show that exit rights are included more frequently in venture capital contracts when …-along rights. Additionally, we find that almost all exit rights are allocated to the venture capitalist rather than to the …