KAPLAN, STEVEN N.; STRÖMBERG, PER - In: Journal of Finance 59 (2004) 5, pp. 2177-2210
We study the investment analyses of 67 portfolio investments by 11 venture capital (VC) firms. VCs describe the strengths and risks of the investments as well as expected postinvestment actions. We classify the risks into three categories and relate them to the allocation of cash flow rights,...