Resource title

Financing practices in the German venture capital industry: an empirical assessment

Resource image

image for OpenScout resource :: Financing practices in the German venture capital industry: an empirical assessment

Resource description

This paper investigates the financial contracting behavior of German venture capitalists against the results of recent theoretical work on the design of venture capital contracts, especially with regard to the use of convertible securities. First, we identify a special feature of the German market, namely that public-private partnership agencies require significantly lower returns than private and young venture capitalists. The latter are most likely to follow their North-American counterpart by refinancing themselves with closed-end funds. Second, with regard to financing practices it is shown that the use of convertibles, relative to other instruments, is influenced by the anticipated severity of agency problems.

Resource author

Andreas Bascha, Uwe Walz

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25384

Resource license

Adapt according to the presented license agreement and reference the original author.