Little evidence exists on the financing decisions of newly founded firms or on the financing dynamics of these firms over their life cycle. We aim to help filling this gap by investigating the financing dynamics of 2,456 French manufacturing firms founded between 2004 and 2006 through their...

In this paper, we analyze staging and its different modes in venture capital contracts. We interpret staging as a conscious decision for the introduction of renegotiation. Thereby, the renegotiation process can be designed in different ways as seen by the choice between milestone and round...

The main objective of the present paper is to disentangle observed differences in the design of contracts across VC types into firm selection effects and corporate governance differences between VC types (different contracts). Based on a theoretical approach developed in the first part of the...

Using a detailed German data set on venture capital contracts, we document that contracts between venture capitalists and their portfolio firms specify more complete conditions for future financing for firms that do have no suitable outside financing option, and therefore lower ex-post...

The effects of public policy programs which aim at internalizing spill-overs due to successful innovation are analyzed in a sequential double-sided moral hazard double-sided adverse selection framework. The central focus lies in analyzing their impact on contract design. We show that in our...