Author
Paul Gompers, the Roy and Elizabeth Simmons Professor of Business Administration
Josh Lerner, Harvard Business School
Description
In The Venture Capital Cycle, Paul Gompers and Josh Lerner correct widespread misperceptions about the nature and role of the venture capitalist and provide an accessible and comprehensive overview of the venture capital industry. Bringing together fifteen years of ground-breaking research into the form and function of venture capital firms, they examine the fund-raising, investing, and exit stages of venture capitalists. Three major themes run throughout the process: venture investors confront tremendous information and incentive problems; venture capital processes are inherently interrelated, and a complete understanding of the industry requires a full understanding of the venture cycle; and, unlike most financial markets, the venture capital industry adjusts very slowly to shifts in the demand for and the supply of investment capital.
Table of Contents
I. Venture Capital Fund-Raising
2. An Overview of Venture Capital Fund-Raising
3. What Drives Venture Capital Fund-Raising?
4. How Are Venture Partnerships Structured?
5. How Are Venture Capitalists Compensated?
6. Does the Venture Capital Structure Matter?
II Venture Capital Investing
7. An Overview of Venture Capital Investing
8. Why Are Investments Staged?
9. Do Fund Inflows Impact Private Equity Valuations?
10. How Do Venture Capitalists Oversee Firms?
11. Why Do Venture Capitalists Syndicate Investments?
12. Does Venture Capital Spur Innovation?
13. Can the Government Be an Effective Venture Capitalist?
III Exiting Venture Capital Investments
14. An Overview of Exiting Venture Capital Investments
15. Do Market Conditions Affect the Decision to Go Public?
16. Does Reputation Affect the Decision to Go Public?
17. Do Investment Bank-Affiliated Venture Capitalists Exhibit Conflict of Interest?
18. Why Do IPO Lockups Exist?
19. Why Do Venture Capitalists Distribute Shares?
20. How Well Do Venture-Backed Offerings Perform?
21. The Future of the Venture Capital Cycle
22. A Note on Data Sources
References
Index
