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

  • 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. Klassifikation: C24; G24; G32

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Metadaten
Author:Andreas Bascha, Uwe WalzGND
URN:urn:nbn:de:hebis:30-9982
URL:https://www.ifk-cfs.de/2273.html
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2002,08
Series (Serial Number):CFS working paper series (2002, 08)
Document Type:Working Paper
Language:English
Year of Completion:2002
Year of first Publication:2002
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2005/06/13
Tag:Agency Theory; Convertible Securities; Underpricing; Venture Capital
GND Keyword:Deutschland; Risikokapital; Public Private Partnership
Issue:Version July 2002
Page Number:42
HeBIS-PPN:202713776
Institutes:Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht