Managing risk is one of the main activities of venture capital companies. Despite the fact that this topic is of high … practical relevance, only little research was published on risk management performed by venture capital companies in their … measures to decrease failure risk in venture capital-backed ventures. We tested these hypotheses with an empirical data set of …

optimal exit strategy for an entrepreneur are jointly determined in the presence of undiversifiable idiosyncratic risk. We … find that the entrepreneur is more likely to exit from her risky business as investment opportunity worsens or as her risk … aversion coefficient increases or as the idiosyncratic risk increases. When the entrepreneur decumulates wealth, she can …