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Venture Capital Contract Dynamics by Santiago Mendez is a document available to read on EtoBox.
What is Venture Capital Contract Dynamics about?
This working paper estimates the impact of venture capital (VC) contract terms on startup outcomes and the distribution of value between entrepreneurs and investors using a dynamic search and matching model. The findings indicate that while an optimal equity split exists to maximize startup success, VCs often secure more favorable terms at the expense of entrepreneurs, leading to a suboptimal distribution of value. Additionally, the study highlights the importance of agent selection in contracting and revea
- Author
- Santiago Mendez
- Language
- EN