Chapter 19- why do VCist distribute shares?
Really 2 questions:
1: Why do VCists distribute shares instead of money?
2: Why does a firms stock price fall, on average, when a VCist distribute shares?
Part 1: Why do VCists distribute shares in
Finishing chapter 14
Concerns regarding how VCist exit investments:
- VCist may invest too much in industries with hot IPO markets
distortion of away from
- VCist may push firms into IPOSs in ways that are harmful to the firms
* IPOs timed t
Ch12- does VC spur innovation?
Main question: Does VC generate greater technological innovation than would
- Many governments assume so, and promote programs or polices to
support or try to replicate VC.
Article asks a straightforward que
Chapter 11- Why do Vcists syndicate investments?
One VC fund typically does not fund a firm by itself
- syndicate- multiple VC funds from different VC organizations agree to
jointly fund a firm.
- lead VCist- VC fund with the largest stake and it
From last time
Assertionmore experienced VCists are better at timing IPOs to not IPO markets
then less experienced VCists because more experienced VCists are better at
perceiving hot IPO markets.
Q3: Do alternative explanations seem to hold?
Sample 750 financings between 1978 and 1992 of privately-held biotechnology
companies that have previously received VC
136 IPOs (public financings)
614 rounds of VC(private financings)
Biotechnology is significant:
- biotech fi
100 points total
Gompers and Lerner Chapter 8 Why Are Investments Staged? (15 points)
Define duration, as the word is used in Chapter 8. (3 points)
If the monitoring and information collection undertaken by ventur
100 points total
Course Introduction and Gompers and Lerner Chapter 1 (6 points total)
Define adverse selection. (3 points)
Define moral hazard. (3 points)
Gompers and Lerner Chapter 7 (9 points total)