Taxation and Venture Capital Backed Entrepreneurship

Capital Gains Taxation and Entrepreneurship

The taxation of capital gains is a perennial issue in tax policy. One critical aspect for understanding the overall effects of capital gains taxation is how these taxes affect entrepreneurs. While many analyses focus on the disincentive effects created by capital gains taxes for investors in large corporations, these disincentives may be even more important for entrepreneurs. This paper discuss...

PRELIMINARY DRAFT Capital Gains Taxation and Entrepreneurship

This draft is quite preliminary so I look forward to our meeting. For me, writing this draft has raised a number of questions about what institutional features of the tax system might explain why the Survey of Consumer Finance data indicates a large stock of unrealized capital gains on actively-managed businesses, but the capital gains on such businesses seem to be relatively modest in the Stat...

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...

Healthcare Industry Week 2012 Venture Capital and Entrepreneurship Panel

Investment Bank Compensation in Venture and Non-Venture Capital Backed IPOs

We address two puzzles of the IPO literature: (1) Why do investment banks earn positive profits in a competitive market? And (2) Why do banks receive lower gross spreads in VC backed IPOs? We model the IPO procedure as a two-stage signaling game. In the second stage banks set offer prices given their private information and the level of the spread. Issuers anticipate the bank’s pricing decision...