Introduction
Venture Capital is an institutional or
private investment which addresses the funding needs of entrepreneurial
business around the globe. Venture capitalists involve high risks expecting
high returns from the investments. Money from venture capital is invested in a
small business which could be at startup but has the potential to grow and
become big companies. Experts who are involved in this kind of financing are
known as venture capitalists (Bottazzi, 2008).
They buy shares of the company they are interested in and become the funding
partners with the business owners.
Venture capital is also known as risk
capital because when investments are made, no sure knowledge exists that the
investment will return the money. However, as much as it is risky, it is a
profitable venture. Some institutions have been formed to pull together
investors of all different capabilities called venture capital firms (Sorenson, 2001). The companies
later invest the money in business giving back profits to the contributors of
the venture capital.
The progress of any business relies on the
availability of capital. Lenders will require collateral to secure their money.
Without venture capital, businesses would not have the money to spend or expand
its operations (Bottazzi, 2008). If the
enterprise does not prove to be worthwhile, then funds shall not be available
for the business.
Liquid
Once you involve your company into a
venture capital investment, it is not easy to get out. Most of the investors
are patient enough until the company or organization can issue an IPO. This is
the liquidity risk premium of the initial investment in the business.
Long-term commitment
As stated earlier, most the investors in
venture capital are not in a hurry to get their returns. Since they know the
process of coming up with a viable business, maturing it until it develops
takes time. Venture capitalists make long-term investments of their money to a
maximum of five years (Madill,
2005). The potential of the profit is usually huge considering the time
lag involved in the start of the business to the issue of the first IPO. Their
patience is a characteristic that stands out for venture capitalists.
Difficult to determine market value
According to Madill (2005) venture
capitalists do not trade their assets in active markets, it is potentially
confusing to know the objective value of the investment and business. Compared
to stock markets, where the market is active, it is possible to determine the
actual value of the company or investments.
Limited historical risk
The fact that venture capitalists are
trading in new markets and business, there is no historical data to predict the
movement of capital. Lack of an active market limits the historical data on any
venture that a VC would be interested.
Lack of knowledge of competitors
Since most of the business are new, it is
hard to determine who else is working on the same idea or is already venturing
into it. It makes it a challenge to identify the prospective competitors in the
business. However, once the business has been boosted with the capital and
returns start flowing in, that’s the point at which the company will note its competitors.
Vintage cycles
The economic climate of any country will
determine the number of business startups. However, some years will provide
better business environment than others. All these will depend on the type of
market. Besides, who exits the market and when determines the pickup of the
business.
The
Venture capitalists will always put their focus on major growing companies with
high potentials in return on investment (Sørensen, 2007). A business plan that can elaborate the rate of
investment will be at a greater advantage than others. On the other hand, a
fast growing company that requires additional capital would quickly get funded
because historical data shows the rich and high potential of the enterprise.
Types of venture capital
Early phase funding
Early-phase
funding is categorized into several stages namely seed funding, start-up, and
first phase financing,
1. Seed
funding
At this point, small portions of capital
are handed to a business or entrepreneur for being eligible for the funding.
These funds are usually directed to early research, and developing a business
plan. Their primary aim is to finance the early development of the idea to
enhance its growth (Sørensen, 2007).
Also, at this stage, a company is usually not formed neither is it in
operation. However, the infusion of the funds is very crucial to its
development at this point. Essentially, it is at this stage that business fails
because they lack the funds to carry out more market research.
2. Startup
financing
This type of venture capital will support
the initial marketing and product development. It’s a fund that helps companies
in operation for a short period and have not yet retailed a single product.
However, these funds will finance the merchandise improvement as well as
finalize on the market research.
3. First
stage
Venture capital provided for companies that
have been in the market for three years to initiate manufacturing of products
and sales. They still have their services and products in testing. Once the
venture capitalists see the potential, they pump in more money for the business
to roll.
Expansion financing
It can be pigeon-holed as the second phase,
bridge funding and third stage funding. Second-phase funding is the purpose of
beginning their development. They are funded to do more research and buy out
whatever is needed for the development.
Mezzanine financing or second stage mode
of funding is meant for specific companies to help them expand in a major way.
The role out is usually already in place, and the venture capitalists just come
in to fund the process.
Bridge financing is capital provided by
venture capitalists to assist a company in going public. The money acts as a
link between the first IPO and expansion of the company.
Acquisition or buyout financing.
It
is money provided for a company to acquire a whole or part of a corporation.
This personal finance helps a company obtain a product of another company.
Selection criteria
Ventures capitalists consider various
factors before deciding to fund the business. The factors they consider will
determine the eligibility if the company idea. Vetting has to be done to ensure
they invest in the right business. Considering that this is a risky business,
the venture capitalists like to ensure the security of their money. The
following factors are considered:
Management
Management is very crucial in every
business. Venture capitalists like to invest in management that will be able to
run the business as well as, achieve the business plan put in place. They do
not look just for a general manager, but managers who have been in the fields
and can transform a small business into a big booming business. However, it’s
not easy to find such managers. What determines such a criterion is the way a
client presents his work. Business and companies that are looking for venture
capital should be able to provide a list of executives who shall be able to
carry out the managerial roles. The executive should be a panel of people who
have previously made money for investors. Venture capitalists have a funny
saying but holds true that says, they would rather invest in a bad idea being
led by an experienced manager other than a bright and good idea being led an
inexperienced manager. This saying has helped investors choose the right ideas
to invest in with security of their returns.
Size of the market
The size of the market implies that the
business idea has a large market which is reachable and can generate enough
returns (Brander, 2002).
Convincing them is an important thing because they want to put their money in
the business that will pull clients thus raking in revenues of up to 1 billion
dollars. They wish to ensure that their portfolio companies have a chance of
growing their sales and if possible, surpass their targets. The larger the
market size, the higher the chances of the business making sales and generating
revenues for them. All they want is the idea to take first or second place in
the market.
For successful pitching, a business plan
should have a well-detailed analysis of the market and their needs (Brander, 2002). They also prefer
the market sizing in a top-down or bottom-up format. The business plan should also show responses
from customers in the market that they are willing to buy the products. Such a
business plan will automatically win the heart of a venture capitalist.
Excellent product with competitive
edge
Investing in a good product that will
eventually top the market is their other agenda. A great product is one that
will sell irrespective of the market conditions, for a service, it should be
one that the market requires. A problem that has not been solved before. For
the products, it should be the product that the market cannot do without. Such
products are easy to market and their sales easy to monitor. They also look for
products that have a very high competitive advantage in the market. It’s their
goal for a company they invest in to rake in revenues way before competitors
get into the market. To a venture capitalist, he fewer the competitors in the market,
the better for the business.
According to (2002) many are the chances that venture capitalists
will fund businesses that have a monopoly because they are sure of the returns.
However, a new company cannot prove monopoly but can only show its competitive
advantage to get a god ahead node for funding.
Awareness of risk
Venture capitalists are risk takers but do
not mean they will get into a business blindly. They have to know what they are
dealing with as well as what they are getting themselves into. They also need
to accesses risks involved in funding the business, more especially if it is a
startup. If not, a venture capitalist would want to see the mileage and
accomplishments of business before they put their money into it(Chesbrough, 2002). First, they
will consider the legality of the company and ask whether any legal issues will
present themselves in the course of the business.
About the product or services, they ask
themselves whether the business is relevant today or will it be relevant ten
years to come. Thirdly, they would also consider whether they have enough money
in their funds to meet the needs of the business. If not, they will opt out of
the sides. Finally, how they exit the business is crucial. Will the exit be
beneficial to them or will it be a loss?
Their
main aim is to reduce risks involved in business, but that will depend on the
type of fund and the people who are making the investment decisions (Fried, 1994). Ventures capitalists will mitigate
risks while aiming at producing significant returns from the business.
Determinants of financial contracting between
entrepreneurs and VCs
After a business proposal has been vetted
by the Venture capitalist, another crucial part of the investment is the
relationship of the venture capitalist and the entrepreneur (Chesbrough, 2002). This
relationship is critical for it determines the success or failure of business.
The financial contracting part is essential in that it allows funds to start
flowing into the business. Various factors can influence the contacting part:
Amount of capital offered
Every entrepreneur would like a venture
capitalist to fund the business the way he wants it. However, depending on the
nature of investment, the venture capitalists can undercut the aggregate of
finances required to finance the company. Such scenarios are common especially
if the business is not worth such sums of money (Ueda, 2004). For an entrepreneur who is so determined
to get the full capital without any cuts will probably be discouraged. In such
a scenario, what will determine the type of financial contract they will sign,
is the impressive capabilities of the entrepreneur. The amount offered will
determine the type of contract the entrepreneur will opt for; he can reject or
accept the offer depending on his taking of the undercut
Company shares
To be part and person of the company, a
venture capitalist will want a share of the business so as to secure their
capital. They can ask for as much as half of the business shares subject to the
nature of industry. For instance, a venture capitalist who has seen a great
potential in a business idea would double the amount of capital being pumped
into the company for 50% of the shares (Benson, 2010).
For an entrepreneur, it means he will no longer control the business as he
expected; however, the lure of capital is very enticing to refuse. In such a
case, the entrepreneur can opt out if he cannot give out half of his company or
he can get into a financial contract to start the business immediately.
An idea is a personal possession to an
entrepreneur, thus parting with a portion of it is the tricky part. The ability
and capability of the entrepreneur to part with a share of his business as
collateral for the venture capital will determine the type of contract they will
sign.
Contract period
The contract period will affect the
contract between the finance and the entrepreneur. Contract periods span from
one to five years. The longer the period, the better for the entrepreneur
because the amount of money being paid back is enough for the business to
sustain. Unlike an entrepreneur who has to pay back the capital for one year.
It will be stressful for the company as well the management of the company (Kaplan, 2003). However, venture capitalists are very
considerate giving timespans for their return in investments. For instance, an
entrepreneur given a span of five years to repay the capital and the business
is picking up very well will have no difficulties in paying it back. On the
other hand, the entrepreneur with one year for repayments will opt out because
he sees it as not workable.
Conflicts of interest minimization
through contracting
In their quest to make money, the venture
capitalist has found themselves in the middle of conflicts. They have lost
money in legal battles because of conflicts arising from contracts signed with
different companies. Over time, they have come to learn the art of conflict
mitigation. One way to mitigate conflict is the use of contracts. However, the
mind of a person is more powerful than a computer so taking advantage of the
mind by subjecting it into critical thinking to analyze the potentials of the
companies to invest in. Besides, company relationship is essential in
determining where to invest. The relationship between two companies should be
well brought to light. The companies could be competitors or substitutes to
each other. In such a scenario, wise decisions should be made to prevent a
possible conflict of interest in either company.
A preferable way to mitigate the conflict
of interest is by not investing in related companies like direct competitors (Hsu, 2004). There is no sense in
investing money in both companies while the money is being used to bring the
other company down in the market. The investments will be fighting each other,
and one end will lose.
According to Ueda (2004), such a scenario happens, assuming that
they are not major investments, the venture capitalist should apply the
Hippocratic Oath, which means “first do no harm.” If the two companies end up
competing in the same market space, the investor has to be very careful not to
share any confidential information across the board. He should avoid advising
them based on the privileged knowledge he has about the other company. If he
does so, there will be a conflict of interest. Typically, the venture
capitalists will have representatives on the boards of the two different
companies. However, the representatives will excuse themselves from any
discussion that involves the competitive areas of the company.
Rarely will the two parties appoint the
venture capitalists to sit as a neutral arbitrator in any case and help them in
coming up with solutions in a Modus vivendi. In as much as it is rare, it will
be illegal to even a court battle if this comes to light. They will be slapped
with a restraint of trade order which will be disastrous for the funds invested
in either company.
A good example is in the case of Google
and Apple. Both companies shared a board of directors thus having a close
relationship (Ueda, 2004).
As long as one was making computer hardware and the other operating a search
engine, there was no conflict of interest, however, the moment their operation
started converging and becoming similar, the two had to part ways to avoid
conflicts of interest.
In order to prevent such scenarios, it is
precisely stated in the contract that the company shall not put the investor in
a state of conflict of interest. Likewise, for the venture capitalists, he has
to sign the documents that he shall not invest in another company which poses
competition to the latter company. By doing so, the venture capitalist will be
liable for a court summon with intent to undermine the success of the second
company. Such complications also lower the rating of the venture capitalist
such that other companies would not seek funds from them for fear of being put
in the cross fire with their rival companies.
Recently, it has been established that
venture capitalist firms have been unwilling to sign Non-disclosure agreements
with potential clients. It has made the clients feel insecure; however, the
venture capitalist firms have reasons to do so. It is one of the strategies for
avoiding conflicts of interest in disclosure of information. Secondly, they so
to avoid enclosing themselves in a specific part of the industry sector (Bienz, 2010). If they signed a letter of
Non-disclosure with a laptop company, that means they cannot support or fund
any other company dealing with laptops. Also, chances are very high for an
entrepreneur to sue them for the disclosure of information which will hold
ground because of the contract agreement. An entrepreneur can be disappointed
because of his business and decide to blame bluntly it on the venture
capitalist companies. It has also come to their knowledge that non-disclosure
agreements are a waste of time and money. They value their time more, and the
high chances are that they assume or brush aside non-disclosure agreements.
Finally, a non-disclosure agreement could bring potential harm to the firm’s
reputation which the venture capitalists will avoid at all costs.
What and how
post-investment services of VCs are determined/affected
A company that needs funds from venture
capitalists will have to undergo an evaluation to determine the net worth of
the company (Schmidt, 2003).
However, the company will receive assessments which the businessperson is ready
to take and which the investor willing to pay. In the evaluation, the company’s
worth is determined by the price of the last share that was paid. Several
factors determine the investment services offered:
Timing
Time will affect the valuation of your
business or property. There are periods when the value of valuations will be
higher than others (Schmidt, 2003).
For example, valuation of real state in 2015 was greater than in 2009.
Different cycles will affect the value of your investment, for instance, there
have been more people raising money for investments across the globe thus a
lower valuations value.
Relative value
A similar company that is identical to the
company being valued is interrelated concerning industry, revenue growth and
cost structure. Companies of similar size having similar numbers and financial
will be treated equally (Bottazzi, 2008). The
valuation will then be based on a revenue comparison that is multiplied. For
instance, a similar company that has a revenue of 4 million and was valued at
12 million and your company has a revenue of 2 million; your income can be
justified at a value of 6 million.
Auctions
If companies are interested in going for a
deal, the company with the highest bid will take away the deal. In such a case
the value of your company will be raised.
Seller’s desperation
If an entrepreneur is very desperate, then
the price will be lower, and finally, he shall walk away with the lowest value
of the company. However, if he is not desperate and the valuation does not
please him, he can walk away, and the resulting action is that the price value
will be raised to meet his expectation
For an entrepreneur to get funding, he
must fit in the VCs model of value determination. If the client does not meet
the minimum criteria, the venture capitalists will dismiss him. They consider
the whether the business internal rate of return goal is suitable for them (Bottazzi, 2008). They also have to consider how much
they can pay, how to get an exit and how long before exit time matures. The
valuation will also be affected by the type of investor. For instance, a VC is
going to give the lowest valuation for the business, and they have to deliver
an IRR after which investment in the company is made by a partnership vote
after agreeing on all stakes involved.
Strategic investors who have a strategic
need in business will pay more or give more capital to reasonable terms than
Angels or VCs. On the other hand, it is best for an entrepreneur to know that
you can only control the pricing if you are in power (Bottazzi,
2008). For example, a company that is very successful and needs funding
will dictate its terms on the negotiation table. Unlike a struggling firm, the
deal shall be dictated to them because they have no bargaining leverage.
Devising exit strategies
Venture capitalists have two primary exit
strategies in any investment. They can either exit through an initial price
offer or a merger/acquisition. For the past several years there has been a
small price in the initial price offers in the equity markets. As a result, the
VCs are now preferring acquisitions or mergers. The rate of return on a merger
is higher than an IPO. Most this merger involves a smaller company being funded
by a venture capitalist merging with a large public or private company (Benson, 2010). In some cases, there is a merger
between companies of the same size. In this scenario, it only ensures the
survival of the company but a limited return of investments for the venture
capitalist. Most big companies are having a good time when a Venture capitalist
exits because they can buy the company and expand its lines of products by
making the already made products their own. They take advantage if the VC money
that established the product. Once a merger is done, the roles and
participation of venture capitalist come to an end (Bottazzi,
2008). They can no longer be involved in any decision making.
In some cases, the venture capitalists are
eager to finance the company once the contract period is over. They initiate a
management buyout which is characterized by selling it to a new board of
directors who will continue with the operations of the business. This type of
exit involves many parties who chip in the buyout. However, it is not a
preferred preference for the venture capitalists. A venture capitalist aim is
to get his money back.
Schmidt
(2003) states that venture capitalist know that out of 10
investments, only one will rake in major returns. So, the only way to causation
themselves is by devising an exit strategy that will give them back their
initial investments. Sadly, not all exits provide the initial investment a
required by the VC. An excellent exit is one that is being managed by an experienced
board who know what to do and what not to do.
Conclusion
Venture capitalists offer capital to new
business and those that want to expand. They have their criteria they use to
determine the viability of the business. Once the viability is determined, and
they give it go ahead, the business is ready for funding but only after a
contract is signed. However, venture capitalists have been facing challenges
due to conflicts of interests and as a result, they have taken steps to caution
themselves from such scenarios. Venture capitalist firms have formulated rules
such as not engaging in disclosure agreements and investing in directly
competing companies. While sticking to the norms of the game, they ensure there
is no conflict of interest. The firm tries to protect its image and retain its
customers.
Their post-investment services are
determined by following criteria’s that evaluate the net worth of accompany.
They present value that the company will buy, and the entrepreneur will accept.
An exit strategy is essential to a VC for it protects their interests and
finances. They can exit through mergers or IPOs (Schmidt, 2003). They prefer mergers because the
pricing is high compared to IPOs. For any new venture that requires
funding. A venture capitalist would be a
wise option to obtain financing.
Reference
Admati, A.R. and Pfleiderer, P., 1994. Robust financial
contracting and the role of venture capitalists. The Journal of Finance, 49(2),
pp.371-402.
Ball, E., Chiu, H.H. and Smith, R., 2011. Can VCs time the market?
An analysis of exit choice for venture-backed firms. Review of Financial
Studies, 24(9), pp.3105-3138.
Barry, C.B., Muscarella, C.J., Peavy, J.W. and Vetsuypens, M.R.,
1990. The role of venture capital in the creation of public companies: Evidence
from the going-public process. Journal of Financial economics, 27(2),
pp.447-471.
Benson, D. and Ziedonis, R.H., 2010. Corporate venture capital and
the returns to acquiring portfolio companies. Journal of Financial
Economics,98(3), pp.478-499.
Bienz, C. and Walz, U., 2010. Venture capital exit rights. Journal
of Economics & Management Strategy, 19(4), pp.1071-1116.
Bottazzi, L., Da Rin, M. and Hellmann, T., 2008. Who are the
active investors?: Evidence from venture capital. Journal of Financial
Economics,89(3), pp.488-512.
Fried, V.H. and Hisrich, R.D., 1994. Toward a model of venture
capital investment decision making. Financial management, pp.28-37.
Gompers, P.A. and Lerner, J., 2004. The venture capital cycle. MIT
press.
Hellmann, T. and Puri, M., 2002. Venture capital and the
professionalization of startup firms:
Empirical evidence. The
Journal of Finance, 57(1), pp.169-197.
Kaplan, S.N. and Lerner, J., 2010. It ain't broke: the past,
present, and future of venture capital.
Journal of Applied Corporate Finance,
22(2), pp.36-47.
Kaplan, S.N. and Strmberg, P., 2003. Financial contracting theory
meets the real world: An empirical analysis of venture capital contracts. The
Review of Economic Studies, 70(2), pp.281-315.
Amit, R., Brander, J. and Zott, C., 1998. Why
do venture capital firms exist? Theory and
Canadian
evidence. Journal of business
Venturing, 13(6),
pp.441-466.
Barry, C.B., Muscarella, C.J., Peavy, J.W. and
Vetsuypens, M.R., 1990. The role of venture
capital in the creation of public companies: Evidence
from the going-public process. Journal
of Financial economics, 27(2),
pp.447-471.
Bergemann, D. and Hege, U., 1998. Venture
capital financing, moral hazard, and
learning. Journal of Banking & Finance, 22(6), pp.703-735.
Black, B.S. and Gilson, R.J., 1998. Venture
capital and the structure of capital markets: banks
versus
stock markets. Journal of
financial economics, 47(3),
pp.243-277.
Brander, J.A., Amit, R. and Antweiler, W.,
2002. Venture‐capital
syndication: Improved venture
selection vs. the value‐added hypothesis. Journal of Economics &
Management Strategy, 11(3),
pp.423-452.
Bygrave, W.D., 1987. Syndicated investments by
venture capital firms: A networking
perspective. Journal of Business Venturing, 2(2), pp.139-154.
Chesbrough, H.W., 2002. Making sense of
corporate venture capital. Harvard
business
review, 80(3),
pp.90-99.
Ehrlich, S.B., De Noble, A.F., Moore, T. and
Weaver, R.R., 1994. After the cash arrives: A
comparative study of venture capital and
private investor involvement in entrepreneurial firms. Journal of Business Venturing, 9(1), pp.67-82.
Elango, B., Fried, V.H., Hisrich, R.D. and
Polonchek, A., 1995. How venture capital firms differ. Journal of Business Venturing, 10(2), pp.157-179.
Gompers, P. and Lerner, J., 1999. An analysis
of compensation in the US venture capital partnership. Journal of Financial Economics, 51(1), pp.3-44.
Gompers, P. and Lerner, J., 2001. The venture
capital revolution. The
Journal of Economic
Perspectives, 15(2),
pp.145-168.
Gompers, P.A. and Lerner, J., 1999. What drives venture capital
fundraising? (No. w6906).
National
bureau of economic research.
Gompers, P.A. and Lerner, J., 2001. The money of invention: How venture
capital creates new
wealth. Harvard Business Press.
Gompers, Paul, and Josh Lerner. "The
determinants of corporate venture capital success:
Organizational structure, incentives, and
complementarities." In Concentrated
corporate ownership, pp. 17-54. University of Chicago Press, 2000.
Gorman, M. and Sahlman, W.A., 1989. What do
venture capitalists do?.Journal of business
venturing, 4(4),
pp.231-248.
Hellmann, T. and Puri, M., 2000. The
interaction between product market and financing strategy:
The role of
venture capital. Review of Financial
studies, 13(4),
pp.959-984.
Hellmann, T., 1998. The allocation of control
rights in venture capital contracts. The
Rand
Journal of
Economics, pp.57-76.
Hochberg, Y.V., Ljungqvist, A. and Lu, Y.,
2007. Whom you know matters: Venture capital
networks and
investment performance. The
Journal of Finance, 62(1),
pp.251-301.
Hsu, D.H., 2004. What do entrepreneurs pay for
venture capital affiliation?.The Journal of
Finance, 59(4),
pp.1805-1844.
Jeng, L.A. and Wells, P.C., 2000. The
determinants of venture capital funding: evidence across
countries. Journal of corporate Finance, 6(3), pp.241-289.
Kaplan, S.N. and Strömberg, P., 2003. Financial
contracting theory meets the real world: An
empirical
analysis of venture capital contracts. The
Review of Economic Studies, 70(2),
pp.281-315.
Kortum, S. and Lerner, J., 2000. Assessing the
contribution of venture capital to
innovation. RAND journal of Economics,
pp.674-692.
Lee, P.M. and Wahal, S., 2004. Grandstanding,
certification and the underpricing of venture
capital
backed IPOs. Journal of
Financial Economics, 73(2),
pp.375-407.
Lerner, J., 1994. The syndication of venture
capital investments. Financial
management, pp.16
27.
Lerner, J., 2002. When bureaucrats meet
entrepreneurs: the design of effective public venture
capital'programmes. The Economic Journal,112(477),
pp.F73-F84.
Letts, C.W., Ryan, W. and Grossman, A., 1997.
Virtuous capital: What foundations can learn
from
venture capitalists. Harvard
business review, 75,
pp.36-50.
MacMillan, I.C., Siegel, R. and Narasimha,
P.S., 1986. Criteria used by venture capitalists to
evaluate
new venture proposals. Journal
of Business venturing, 1(1),
pp.119-128.
Madill, J.J., Haines, Jr, G.H. and RIding,
A.L., 2005. The role of angels in technology SMEs: A
link to
venture capital. Venture
Capital, 7(2),
pp.107-129.
Mäkelä, M.M. and Maula, M.V., 2005.
Cross-border venture capital and new venture
internationalization:
An isomorphism perspective. Venture
Capital,7(3), pp.227-257.
Mason, C.M. and Harrison, R.T., 1999. Venture
capital: Rationale, aims and scope. Venture
capital, 1,
pp.1-46.
Paul, S., Whittam, G. and Johnston, J.B., 2003.
The operation of the informal venture capital
market in
Scotland. Venture capital, 5(4), pp.313-335.
Robbie, W. and Mike, K., 1998. Venture capital
and private equity: A review and
synthesis. Journal of Business Finance &
Accounting, 25(5‐6), pp.521-570.
Sahlman, W.A., 1988. Aspects of financial
contracting in venture capital.Journal of applied
corporate
finance, 1(2), pp.23-36.
Sahlman, W.A., 1990. The structure and
governance of venture-capital organizations. Journal
of
financial
economics, 27(2), pp.473-521.
Schmidt, K.M., 2003. Convertible securities and
venture capital finance. The
Journal of
Finance, 58(3),
pp.1139-1166.
Sørensen, M., 2007. How smart is smart money? A
two‐sided matching model of Venture
Capital. The Journal of Finance, 62(6), pp.2725-2762.
Sorenson, O. and Stuart, T.E., 2001.
Syndication networks and the spatial distribution of venture
capital
investments1. American journal
of sociology,106(6), pp.1546-1588.
Sykes, H.B., 1990. Corporate venture capital:
Strategies for success.Journal of Business
Venturing, 5(1),
pp.37-47.
Ueda, M., 2004. Banks versus venture capital:
Project evaluation, screening, and
expropriation. The Journal of Finance, 59(2), pp.601-621.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.