equity stake or a fixed debt position at a future date. We study convertible venture investments exposed to failure risk and …, funding size, initial value and VC productivity but declines with failure risk, venture horizon and entrepreneur …

Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of … the role of risk for the choice of the method of financing. Since risk is not directly observable we use different … indicators for financial and project risk. It turns out that our data generally confirms the hypothesis that the probability that …