Optimal Public Policy for Venture Capital Backed Innovation

Finance , Innovation & Growth ( FINNOV ) Innovation in Venture - Capital Backed Clean - Technology Firms in the UK

A pecking order of venture capital exits - What determines the optimal exit channel for venture capital backed ventures?

I develop a model of exits from venture capital backed companies based on moral hazard. The focus is on two alternatives: a trade sale and an IPO. The alternatives differ in their governance structure. The model shows that highly profitable companies that need few oversight will go public, while less profitable companies that require more control will be sold. This suggests that the common noti...

Innovation and Venture Capital Policy in Brazil and South Africa

This paper examines what constrains and what augments innovation in emerging markets, with a focus on the role of venture capital. It analyses what policy options are open to the government to facilitate innovation. To do this it looks at two country case studies: Brazil and South Africa.

No . 2006 / 29 Public Policy and Venture Capital Financed Innovation : A Contract Design Approach

The effects of public policy programs which aim at internalizing spill-overs due to successful innovation are analyzed in a sequential double-sided moral hazard doublesided adverse selection framework. The central focus lies in analyzing their impact on contract design. We show that in our framework only ex post grants are a robust instrument for implementing the first-best situation, whereas t...

Prediction of Equity Values for Venture Capital Backed Firms

This study investigates the predictability of firm values for venture capital-backed firms. Having insights into the internal documents of more than 300 venture capitalists, we derive three common categories of firm value drivers: team characteristics, firm and market characteristics, and accounting information. Based on these value drivers, we provide a regression based valuation approach, whi...