'Venture Capital Contracting and the Valuation of High Technology Firms' Now Available.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c80742) has announced the addition of Venture Capital Contracting and the Valuation of High Technology Firms to their offering. This collection of state-of-the-art essays explores the important role of venture capital finance used to invest mainly in small and medium size firms with good growth prospects. It shows that important features of contract and organizational law have substantially contributed to the competitiveness of the US venture capital industry. Venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. are specialized intermediaries that channel capital to firms and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to companies that might otherwise be excluded from the corporate debt market and other sources of private finance. Venture capital financing To start an own company or to bring a new product to the market, the venture may need to attract financial funding. There are several categories of financing possibilities. If it is a small venture, then perhaps the venture can rely on family funding, loans from friends is used to invest mainly in small and medium size firms with good growth and exit potential. Typically, venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] concentrate in industries with a great deal of uncertainty, where the information gaps among entrepreneurs and venture capitalist are commonplace. Venture capital firms are active in sectors with a high informational opacity Refers to being "opaque," which means to prevent light from shining through. For example, in an image editing program, the opacity level for some function might range from completely transparent (0) to completely opaque (100). and agency costs Agency Costs The costs resulting from an agent performing services for a principal. Notes: Agency costs are generally the commissions earned by agents. See also: Agency Problem, Agent, Principal Agency costs . These ventures are identified as financially constrained. Start-up firms rely on venture capital as one of their main sources of funding. Recent empirical research Noun 1. empirical research - an empirical search for knowledge inquiry, research, enquiry - a search for knowledge; "their pottery deserves more research than it has received" has found that the effect of venture capital on the success of these ventures is considerable. The value of venture capital investment is borne out by the figures which show that venture capital backed-firms grow on average twice as fast as those not backed by venture capital firms. The debate on the development of an efficient venture capital market has forced us to consider which financial instruments, legal rules, labour laws, contracts, and other institutional structures are necessary to create a venture capital market. The contributions to this book have offered insights on the structure of venture capital fund financial contracts, the screening, monitoring and staging of potential investments, the importance of partnership and other legal business forms for investors and start-up firms, the funding of innovation, the valuation of investments, and the exit routes for venture capitalists. The essays in this volume, which draw upon international evidence and ideas from financial economics and law, contribute to further research on the relationship between venture capitalists and entrepreneurs. This collection analyses the main legal and contracting structures in the venture capital cycle. Exploring the differences between the US and European venture capital markets, it focuses on diverse organizational and contractual techniques, such as staged finance, convertible securities, board functions and other forms of control, and the role of exit. Theoretical chapters examine the valuation of entrepreneurial firms and the liquidiation preference in convertible securities. Finally, the book assesses the importance of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. market for entrepreneurs, investors and venture capitalists alike. Readership: Academics teaching and researching financial economics, venture capital, entrepreneurship, industrial organization, and corporate law. Professionals in venture capital and business law. 1. Venture Capital Financing of Innovative Firms: An Introduction, Joseph A. McCahery and Luc Renneboog Part I: Venture Capital Financing 2. Venture Capital and the Structure of Financial Markets: Banks Versus Stock Markets, Bernard S. Black and Ronald J. Gilson 3. Going Public and the Option Value of Convertible Securities in Venture Capital, Thomas Hellman 4. Evidence on the Venture Capital Investment Process: Contracting, Screening, and Monitoring, Steven N. Kaplan and Per Stromberg 5. The Value of Benchmarking, Dirk Bergemann and Ulrich Hege 6. Venture Capital on the Downside On the Downside is an EP by the San Diego, California band Counterfit, released by Alphabet Records in 2000. It was the band's first EP, recorded shortly after the members had relocated to San Diego from Fairfield County, Connecticut. : Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and Corporate Control, William W. Bratton Part II: Innovation, Law, and Finance 7. Law, Innovation, and Finance, John Armour 8. Business Organization Law and Venture Capital, Joseph A. McCahery and Erik P. M. Vermeulen 9. Venture Captial and Innovation: Clues to a Puzzle, Samuel Kortum and Josh Lerner Part III: Valuation of High-Tech Firms 10. Real Options: Principles of Valuation and Strategy, Han T. J. Smit and Lenos Trigeorgis 11. The Market Valuation of Biotechnology Firms and Biotechnology R&D, John R. M. Hand 12. Internet Portals as Portfolios of Entry, Enrico Perotti and Silvia Rossetto 13. The Dotcom Premium: Rational Valuation or Irrational Exuberance Irrational Exuberance An infamous phrase uttered by Alan Greenspan in 1996 to describe the overvalued market at the time. Notes: Although every word spoken by Mr. ?, Michael Cooper 14. The Liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy Preference in Venture Capital Investment Contracts: A Real Options Approach, Didier Cossin, Benoit Leleux, and Entela Saliasi Part IV: Venture Capital Exits and IPOs 15. The Extent of Venture Capital Exits: Evidence from Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. , Douglas J. Cumming and Jeffrey G. MacIntosh 16. Greenhorns, Yankees, and Cosmopolitans: Venture Capital, IPOs, Foreign Firms, and US Markets, Edward B. Rock 17. Lock-in Agreements in Venture Capital Backed UK IPOs, Susanne Espenlaub, Marc Goergen, Arif Khurshed, and Luc Renneboog 18. The Effect of Market Conditions on Initial Public Offerings, Raghuram Rajan Raghuram Govind Rajan until January 2007 was the Economic Counselor and Director of Research at the International Monetary Fund, or more simply, its Chief Economist. He replaced Ken Rogoff at the IMF in September 2003. and Henri Servaes 19. The Rise and Fall of the European New Markets: On the Short and Long-run Preformance of High-Tech Initial Public Offerings, Marc Goergen, Arif Khurshed, Joseph A. McCahery, and Luc Renneboog Author Index Subject Index List of Figures List of Tables For more information visit http://www.researchandmarkets.com/reports/c80742 Source: Oxford University Press |
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