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problems and affect finance composition. However, experience of business failure might result in additional effects. This … analysis therefore investigates the effects of experience on several aspects of start-up financing. It is based on data from … the KfW Start-up Monitor, a representative annual survey of the German population. The results show that experience …
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Starting a firm with expansive potential is an option for educated and high-skilled workers. This option serves as an insurance against unemployment caused by labor market frictions and hence increases the incentives for education. We show within a matching model that reducing the start-up costs...
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Venture capital markets are characterized by multiple incentive problems and asymmetric information in an uncertain environment. All kinds of agency problems are present: moral hazard, adverse selection, hold-up problems, window dressing, etc. Entrepreneurs and venture capitalists enter into...
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