Publication
Jul 2002
This paper examines the advantages of offering venture capitalists a choice between public equity and public loan schemes. It shows that offering venture capitalists a choice between the two leads to positive self-selection. Inexperienced venture capitalists choose public equity under which they have higher incentives to enter the market. Experienced venture capitalists choose public loans under which they have fewer incentives to cut back on management supports.
Download |
English (PDF, 33 pages, 230 KB) |
---|---|
Author | Andrea Schertler |
Series | Kiel Institute Working Papers |
Issue | 1118 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2002 Kiel Institute for the World Economy |