Venture Capital

This book analyzes the VC‘s role as a monitoring agent and a certifying agent in the relationship with the entrepreneur. It is focused on the impact of asymmetric information on optimal investments, learning, and exit outcomes in this context.

The research results show that agency costs of the VC are time-variant, the information rent earned by the VC in a funding relationship is biased under asymmetric Information and certification by the VC in the exit phase is most important if new investors face high search and screening costs.