12. Venture Capital

  1. H. Kent Baker and
  2. Greg Filbeck
  1. Tom Vanacker1 and
  2. Sophie Manigart2

Published Online: 2 APR 2013

DOI: 10.1002/9781118656501.ch12

Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

How to Cite

Vanacker, T. and Manigart, S. (2013) Venture Capital, in Alternative Investments: Instruments, Performance, Benchmarks, and Strategies (eds H. K. Baker and G. Filbeck), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118656501.ch12

Author Information

  1. 1

    Assistant Professor, Department of Accountancy and Corporate Finance, Ghent University

  2. 2

    Professor, Department of Accountancy and Corporate Finance, Ghent University; Vlerick Business School

Publication History

  1. Published Online: 2 APR 2013
  2. Published Print: 18 MAR 2013

ISBN Information

Print ISBN: 9781118241127

Online ISBN: 9781118656501

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Keywords:

  • venture capital;
  • information asymmetry;
  • business model;
  • value chain;
  • portfolio company performance;
  • venture capital fund returns.

Summary

This chapter introduces venture capital, which is a subset of the private equity asset class that focuses on investments in new or growing privately held companies with high growth potential. It specifically addresses why venture capital investors exist beside traditional financial intermediaries such as banks; what the different venture capital models are; what venture capitalists do; how venture capital investors influence the development of their portfolio companies; and how venture capital as an asset class may create value for investors. For this purpose, the chapter relies on an extensive and growing, but largely fragmented, stream of research on venture capital from the finance, entrepreneurship, and management fields.