The Venture Capital Cycle / Edition 2

The Venture Capital Cycle / Edition 2

by Paul Gompers, Josh Lerner
     
 

In The Venture Capital Cycle, Paul Gompers and Josh
Lerner correct widespread misperceptions about the nature and role of the venture capitalist and provide an accessible and comprehensive overview of the venture capital industry. Bringing together fifteen years of ground-breaking research into the form and function of venture capital firms, they examine

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Overview

In The Venture Capital Cycle, Paul Gompers and Josh
Lerner correct widespread misperceptions about the nature and role of the venture capitalist and provide an accessible and comprehensive overview of the venture capital industry. Bringing together fifteen years of ground-breaking research into the form and function of venture capital firms, they examine the fund-raising,
investing, and exit stages of venture capitalists. Three major themes run throughout the process: venture investors confront tremendous information and incentive problems; venture capital processes are inherently interrelated, and a complete understanding of the industry requires a full understanding of the venture cycle;
and, unlike most financial markets, the venture capital industry adjusts very slowly to shifts in the demand for and the supply of investment capital.This second edition has been thoroughly revised in light of recent research findings, and includes six new chapters. The first part, on fund-raising, now includes a chapter that examines what determines the level of venture capital fund-raising and how tax policy influences the demand for venture capital. Three new chapters in the second part, on investing, examine what kind of distortions are introduced when the venture capital market goes dramatically up, a question prompted by the 1999-2000 market bubble;
demonstrate that the venture capital industry does indeed spur innovation, an important determinant of economic growth; and examine whether and under what circumstances governments can be effective venture capitalists. Two new chapters in the third part, on exiting venture capital investments, discuss whether venture capital firms affiliated with investment-banks are prone to conflicts of interest with public offerings and how lockups on initial public offerings are used to limit conflicts of interest.

The MIT Press

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Product Details

ISBN-13:
9780262572385
Publisher:
MIT Press
Publication date:
09/01/2006
Edition description:
second edition
Pages:
582
Sales rank:
1,338,571
Product dimensions:
7.00(w) x 9.00(h) x 1.18(d)
Age Range:
18 Years

Related Subjects

Table of Contents

1Introduction1
IVenture capital fund-raising
2An overview of venture capital fund-raising23
3What drives venture capital fund-raising?33
4How are venture partnerships structured?65
5How are venture capitalists compensated?91
6Does the venture capital structure matter?127
IIVenture capital investing
7An overview of venture capital investing157
8Why are investments staged?171
9Do fund inflows impact private equity valuations?201
10How do venture capitalists oversee firms?241
11Why do venture capitalists syndicate investments?255
12Does venture capital spur innovation?273
13Can the government be an effective venture capitalist?309
IIIExiting venture capital investments
14An overview of exiting venture capital investments345
15Do market conditions affect the decision to go public?355
16Does reputation affect the decision to go public?377
17Do investment bank-affiliated venture capitalists exhibit conflict of interest?399
18Why do IPO lockups exist?423
19Why do venture capitalists distribute shares?459
20How well do venture-backed offerings perform?483
21The future of the venture capital cycle515
22A note on data sources519

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