TY  - UNPD
A1  - Inderst, Roman
A1  - Müller, Holger
A1  - Münnich, Felix
T1  - Financing a portfolio of projects
T2  - Working paper series / Institute for Monetary and Financial Stability ; 34
N2  - This article shows that investors financing a portfolio of projects may use the depth of their financial pockets to overcome entrepreneurial incentive problems. Competition for scarce informed capital at the refinancing stage strengthens investors’ bargaining positions. And yet, entrepreneurs’ incentives may be improved, because projects funded by investors with ‘‘shallow pockets’’ must have not only a positive net present value at the refinancing stage, but one that is higher than that of competing portfolio projects. Our article may help understand provisions used in venture capital finance that limit a fund’s initial capital and make it difficult to add more capital once the initial venture capital fund is raised. (JEL G24, G31)
T3  - Working paper series / Institute for Monetary and Financial Stability - 34 
KW  - Risikokapital
Y1  - 2009
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/7321
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-72945
UR  - http://www.imfs-frankfurt.de/fileadmin/user_upload/pdf/WP_2009_34_Inderst.pdf
N1  - Published in: The Review of Financial Studies, 2007, vol. 20, issue 4, pp. 1289-1325
ER  -