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This paper surveys empirical and theoretical studies of various control mechanisms embedded in venture capital contracts. These mechanisms mitigate incentive problems and opportunistic behavior arising in the uncertain environment of financing young hightechnology enterprises that predominantly...
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between venture capital financing and product market competition: A young firm with a risky innovation project attempts to …
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Start-up entrepreneurs are often commercially inexperienced. In giving managerial advice, venture capitalists can importantly enhance the success of innovative but highly risky ventures. The supply of experienced venture capitalists is not easily increased, however. When the rate of business...
Persistent link: https://www.econbiz.de/10014460974
Empirically, VC-backed startups have higher early growth rates and patenting levels than non-VC-backed ones. Venture … capitalists increase a startup's likelihood of reaching the right tails of the firm size and innovation distributions. Furthermore …, outcomes are better for startups matched with more experienced venture capitalists. An endogenous growth model, where venture …
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duration of the investment and the stage of development of the firm being financed …
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This paper examines the impact of venture capitalists' reputation building and experience accumulation on the genesis of venture capital markets. Venture capitalists must accumulate experience to successfully support high-technology enterprises. They must build reputation, i.e., a track record...
Persistent link: https://www.econbiz.de/10011474799
Why does trust vary so substantially across countries? This paper presents a general equilibrium growth model in which … rate of investment. The predictions of the model are examined empirically for a cross-section of countries and have …
Persistent link: https://www.econbiz.de/10014119138