TY  - UNPD
A1  - Dietz, Martin D.
T1  - Screening and advising by a venture capitalist with a time constraint
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2003,48
N2  - This paper proposes an intertemporal model of venture capital investment with screening and advising where the venture capitalist´s time endowment is the scarce input factor. Screening improves the selection of firms receiving finance, advising allows firms to develop a marketable product, both have a variable intensity. In our setup, optimal linear contracts solves the moral hazard problem. Screening however asks for an entrepreneur wage and does not allow for upfront payments which would cause severe adverse selection. Project characteristics have implications for screening and advising intensity and the distribution of profits. Finally, we develop a formal version of the "venture capital cycle" by extending the basic setup to a simple model of venture capital supply and demand.
T3  - CFS working paper series - 2003, 48 
KW  - Venture capital
KW  - market structure
KW  - product development
KW  - Risikokapital
Y1  - 2003
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4442
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10528
ER  -