What Economists Have Taught Us About Venture Capital Contracting

BRIDGING THE ENTREPRENEURIAL FINANCING GAP: LINKING GOVERNANCE WITH REGULATORY POLICY, Michael Whincop, ed., Ashgate, 2001

17 Pages Posted: 15 Aug 2001

Abstract

This paper synthesizes recent theoretical and empirical research on the terms of venture capital financings of portfolio companies and limited partnership agreements with investors. The objective is to better understand the ways in which these contracts respond to the conditions of extreme information asymmetry and agency cost among venture capitalists, venture capital investors, and the management of VC-funded firms.

Suggested Citation

Klausner, Michael D. and Litvak, Kate, What Economists Have Taught Us About Venture Capital Contracting. BRIDGING THE ENTREPRENEURIAL FINANCING GAP: LINKING GOVERNANCE WITH REGULATORY POLICY, Michael Whincop, ed., Ashgate, 2001, Available at SSRN: https://ssrn.com/abstract=280024 or http://dx.doi.org/10.2139/ssrn.280024

Michael D. Klausner (Contact Author)

Stanford Law School ( email )

559 Nathan Abbott Way
Stanford, CA 94305-8610
United States
650-723-6433 (Phone)
650-725-0253 (Fax)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Kate Litvak

Northwestern University - Pritzker School of Law ( email )

375 E. Chicago Ave
Chicago, IL 60611
United States

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