Contracts and Exits in Venture Capital Finance

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dc.contributor.author	Cumming, Douglas J.	en_US
dc.date.accessioned	2009-02-04T10:24:55Z
dc.date.available	2009-02-04T10:24:55Z
dc.date.issued	2004-06-15T00:00:00Z	en_US
dc.identifier.uri	http://hdl.handle.net/10398/6825
dc.description.abstract	Contracts and exits from a sample of 179 investment rounds in 132 entrepreneurial firms by 17 European venture capital (VC) funds are analyzed. The data indicate the financial contracts are quite heterogeneous in terms of both the cash flow and control rights. The use of different securities by European VC funds does not depend on the definition of venture capital, and the securities used are not functional equivalents. A normative empirical analysis of exit shows the likelihood of different types of exit vehicles (IPO, acquisition, and liquidation) and the returns to venture capital depend on not only firm specific characteristics but also the allocation of cash flow and control rights. Keywords: Venture Capital, Financial Contracting, Exit, IPO, Acquisition JEL Classification: G24, G28, G31, G32, G35	en_US
dc.format.extent	49 s.	en_US
dc.language	eng	en_US
dc.relation.ispartofseries	LEFIC Working paper;2002-14	en_US
dc.subject.other	kep	en_US
dc.title	Contracts and Exits in Venture Capital Finance	en_US
dc.type	wp	en_US
dc.accessionstatus	modt04jun15 mielmo	en_US
dc.contributor.corporation	Copenhagen Business School. CBS	en_US
dc.contributor.department	Center for Law, Economics & Financial Institutions
dc.contributor.departmentshort	LEFIC	en_US
dc.contributor.departmentuk	Center for Law, Economics & Financial Institutions
dc.contributor.departmentukshort	LEFIC
dc.idnumber	x656409338	en_US
dc.publisher.city	København	en_US
dc.publisher.year	2002	en_US