The creation and scaling of startups are inherently linked to risk-taking, with various types of owners handling these …, introduce ”exit costs” that make high-risk strategies more attractive to VC-backed startups. Moreover, an active VC market … presence of VC intensifies research risk among established firms, as their research initiatives are strategic complements to …

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 …

This paper examines the interaction between venture risk, product market competition and entrepreneurs' choice between … financier, thus yielding lower effort incentives for the entrepreneur. There exists a threshold level of venture risk such that … bank financing is optimal if and only if venture risk is below that threshold. Product market competition increases the …