Financing Ventures

Jeremy Greenwood, Pengfei Han () and Juan Sanchez

No 24808, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The relationship between venture capital and growth is examined using an endogenous growth model incorporating dynamic contracts between entrepreneurs and venture capitalists. At each stage of financing, venture capitalists evaluate the viability of startups. If viable, venture capitalists provide funding for the next stage. The success of a project depends on the amount of funding. The model is confronted with stylized facts about venture capital: statistics by funding round concerning success rates, failure rates, investment rates, equity shares, and IPO values. The increased efficiency offered by venture capital for financing inventive startups is important for long-run growth and welfare.

JEL-codes: E13 E22 G24 L26 O16 O31 O40 (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-cfn, nep-cta, nep-dge, nep-ent, nep-fdg, nep-gro, nep-mac and nep-sbm
Note: EFG
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Citations: View citations in EconPapers (1)

Published as Jeremy Greenwood & Pengfei Han & Juan M. Sánchez, 2022. "FINANCING VENTURES," International Economic Review, vol 63(3), pages 1021-1053.

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Related works:
Journal Article: FINANCING VENTURES (2022)
Working Paper: Financing Ventures (2021)
Working Paper: Financing Ventures (2018)
Working Paper: Financing Ventures (2018)
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