Requirements for Creating a Venture Capital Market: Lessons from the American Model

Jean Robert Hale Hunter Deuling Abstract In working with the Tanzanian Government and Investment Community, this paper seeks to help the parties to understand the core of the U.S. venture capital contracting model, and develops the extent to which the model provides guidance in engineering a venture capital market and, in particular, in identifying a viable role for government in assisting that project. All financial contracts respond to three central contracting problems: uncertainty, information asymmetry and opportunism in the form of agency costs. The special character of venture capital contracting is shaped by the fact that investing in early stage, high technology companies presents these problems in extreme. The genius of .. read more

On August 15th, 2016, posted in: Technical by Tags: , , , , ,