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
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.
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