Trade talk: Venture capitalist

Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses

We study the investment analyses of 67 portfolio investments by 11 venture capital (VC) firms. VCs describe the strengths and risks of the investments as well as expected postinvestment actions. We classify the risks into three categories and relate them to the allocation of cash flow rights, contingencies, control rights, and liquidation rights between VCs and entrepreneurs. The risk results s...

Agency Costs of Venture Capitalist Control in Startups

Internationalization Of Management Buyouts: Firm Strategies And Venture Capitalist Contribution

Multivariate statistical analysis is utilized to explore the association between firm strategies, contributions made by venture capitalists and incentives for owners and employees and three exporting variables in a stratified random sample of 147 management buyouts and buyins. Firms focusing upon a diversified product/ service range and/or advertising were significantly more likely to be export...

A Theory of Dismantling a Joint Ownership: The role of the Venture Capitalist in an IPO

When a firm goes public, the joint ownership of the firm is dismantled asynchronously, as venture capitalists are able to sell all of their shares soon after an IPO while the entrepreneur usually stays in the firm for a longer period. This paper captures this empirical fact by introducing a model of the IPO decision that explicitly considers the interaction of different block-holders of the fir...

Real Options – Its Implications On Venture Capitalist ’ s Investment Decision - Making Behavior