8. Financial Contracts and Venture Capitalists' Value-Added

  1. Douglas J. Cumming
  1. Catherine Casamatta

Published Online: 10 JAN 2012

DOI: 10.1002/9781118266908.ch8

Venture Capital: Investment Strategies, Structures, and Policies

Venture Capital: Investment Strategies, Structures, and Policies

How to Cite

Cumming, D. J. (2010) Financial Contracts and Venture Capitalists' Value-Added, in Venture Capital: Investment Strategies, Structures, and Policies, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118266908.ch8

Author Information

  1. Professor of Finance, Toulouse School of Economics (CRG, IDEI) and Europlace Institute of Finance

Publication History

  1. Published Online: 10 JAN 2012
  2. Published Print: 10 MAY 2010

ISBN Information

Print ISBN: 9780470499146

Online ISBN: 9781118266908

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Keywords:

  • financial contracts;
  • model of start-up financing;
  • contractual tools;
  • R&D expenses;
  • financial performance

Summary

This chapter contains sections titled:

  • Introduction

  • Forms of Value-Added of Venture Capitalists

  • Venture Capitalists' Contracts

  • A Model of Start-Up Financing

  • Moral Hazard and Venture Capitalist Intervention

  • Optimal Financial Contracts Between Entrepreneurs and Venture Capitalists

  • Discussion and Empirical Predictions

  • Conclusion

  • Appendix

  • Notes

  • About the Author