Financial / Capital Market

The Oxford Handbook of Venture Capital

By Douglas Cumming
Oxford University Press USA June 2012

Specifications

ISBN-13
9780195391596
Publisher
Oxford University Press USA
Publication
June 2012
Format
Hardback , 672 pages
Jurisdiction
U.S. ? Countri(es) for reference only

Details

  • Comprehensive source of material on venture capital
  • Timely information that covers international evidence over booms and bust periods, including the recent financial crisis

Venture capital (VC) refers to investments provided to early-stage, innovative, and high growth start-up companies. A common characteristic of all venture capital investments is that investee companies do not have cash flows to pay interest on debt or dividends on equity. Rather, investments are made with a view towards capital gain on exit. The most sought after exit routs are an initial public offering (IPO), where a company lists on a stock exchange for the first time, and an acquisition exit (trade sale), where the company is sold in entirety to another company. However, VCs may exit by secondary sales, where the entrepreneur retains his or her share but the VC sells to another company or another investor, buybacks, where the entrepreneur repurchases the VC`s interest, and write-offs or liquidations.

The Oxford Handbook of Venture Capital provides a comprehensive picture of all of the issues dealing with the structure, governance, and performance of venture capital. It comprises contributions from 55 authors currently based in 12 different countries.

Readership: Advanced undergraduate and graduate students in business, economics and law; Professors and other researchers; Practitioners in venture capital and private equity funds, and related institutions such as institutional investors

Table of Contents

Part I. Introduction
Chapter 1
<"Introduction to the Handbook of Venture Capital>"
Douglas Cumming, York University Schulich School of Business
Part II. The Structure of Venture Capital
Chapter 2
<"The Capital Flow from Institutional Investors to Entrepreneurs>"
Alexander Groh, EM Lyon Business School
Chapter 3
<"Venture Capital and the Financial Crisis: An Empirical Study Across Industries and Countries>"
Joern Block, Erasmus School of Economics, Erasmus University Rotterdam, Geertjan De Vires, Department of Applied Economics, Erasmus University Rotterdam, and Philipp Sandner, EXIST Founders' Grant Munich
Chapter 4
<"Venture Capital Reputation>"
C.N.V. Krishnan, Case Western Reserve University, and Ronald Masulis, University of New South Wales and Vanderbilt University
Chapter 5
<"Keys to Fundraising Success in Nascent Venture Capital Firms>"
Jennifer Walske, Haas Business School, University of California Berkeley, and Andrew Zacharakis, Babson College
Chapter 6
<"Corporate Venture Capital in the 21st Century: An Integral Part of Firms' Innovation Toolkit>"
Gary Dushnitsky, London Business School
Chapter 7
<"Corporate Venture Capital: From Venturing to Partnering>"
Joseph A. McCahery, Tilburg University, Erik P.M. Vermeulen, Tilburg University, and Andrew M. Banks, Tilburg University
Chapter 8
<"VIPE Financing: Venture (Capital) Investments in Public Equity>"
Susan Chaplinsky, Darden Graduate School of Business, University of Virginia, and David Haushalter, Smeal College of Business, The Pennsylvania State University
Chapter 9
<"Philanthropic Venture Capital from a Global Perspective: Definition and Investment Strategy>"
Maria Rosa Scarlata, ESADE, and Luisa Alemany, ESADE
Part III. Venture Capital Screening, Staging and Syndication
Chapter 10
<"Venture Capital before the First Dollar: Deal Origination, Screening and Evaluation>"
Chris Yung, McIntyre School of Commerce, University of Virginia
Chapter 11
<"Capital Structure Determinants in Growth Firms Accessing Venture Funding>"
Marina Balboa, University of Alicante - Department of Financial Economics, José Martí, Universidad Complutense de Madrid, and Álvaro Tresierra, Universidad Complutense de Madrid
Chapter 12
<"Venture Capital Staging: Domestic versus Foreign VC-Led Investments>"
Yong Li, SUNY Buffalo
Chapter 13
<"Follow-on Financing of Venture Capital-Backed Companies>"
Tom Vanacker, Vlerick Leuven Gent Management School, Arnout Seghers, Vlerick Leuven Gent Management School, and Sophie Manigart, Vlerick Leuven Gent Management School
Chapter 14
<"Performance Implications of Venture Capital Syndication Networks>"
Denis Trapido, University of California, Irvine
Part IV. Venture Capital Valuation and Financial Contracting
Chapter 15
<"Valuing and Preferred Shares in Venture Capital Financings>"
Dietmar Leisen, University of Mainz
Chapter 16
<"Required Rates of Return and Financial Contracting for Entrepreneurial Ventures>"
Richard Smith, A Gary Andersen Graduate School of Management, University of California Riverside
Chapter 17
<"Financial Contracting in U.S. Venture Capital: Overview and Empirical Evidence>"
Ola Bengtsson, University of Illinois at Urbana-Champaign
Chapter 18
<"Time-Inconsistent Preferences and Venture Capital Contracting>"
Manuel A. Utset, Florida State University School of Law
Chapter 19
<"Syndication of VC Investments, Governance and Contract Design>"
Azin Sharifzadeh, Goethe University Frankfurt and Uwe Walz, Goethe University Frankfurt
Chapter 20
<"Venture Capital in Germany: The Role of Venture Capital Firms' Experience, Ownership Structure and of Agency Problems>"
Ron Christian Antonczyk, KPMG Corporate Finance Singapore, Wolgang Breuer, RWTH Aachen University and Malte Brettel, RWTH Aachen University
Chapter 21
<"Venture Capital Law Firms: An Analysis of Equity Investments and Networks>"
Paul Vronsky, Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, San Francisco
Part V. Venture Capital Value Added and Performance
Chapter 22
<"From Ideas to Product: Financing Innovation and Getting Access to Innovation>"
Wolfgang Bessler, Center for Finance and Banking, Justus-Liebig-University Giessen,Julian Holler, Institute of Finance, University of Hamburg, Germany, Martin Seim, Center for Finance and Banking, Justus-Liebig-University Giessen, and Jan Zimmermann, Center for Finance and Banking, Justus-Liebig-University Giessen
Chapter 23
<"The Impact of Venture Capital on Innovation>"
Roberta Dessi, Toulouse School of Economics, and Nina Yin, Toulouse School of Economics
Chapter 24
<"What Drives the Top Line? Determinants of Sales Revenue in Private Venture-Backed Firms>"
John Hand, University of North Carolina - Chapel Hill
Chapter 25
<"Value Added by Angel Investors through Post-Investment Involvement: Exploratory Evidence and Ownership Implications>"
Jess Chua, University of Calgary, and Zhenyu Wu, University of Saskatchewan
Chapter 26
<"The Impact of Venture Capital Participation and Its Affiliation with Financial Institutions on the Long-term Performance of IPO Firms: Evidence from Korea in Hot and Cold Market Periods>"
Jaeho Lee, Pophang University of Science and Technology (POSTECH)
Part VI. Regional Perspectives on Venture Capital
Chapter 27
<"Regional Impact of Venture Capital>"
Sampsa Samila, National University of Singapore and Brock University
Chapter 28
<"Spread, Scope and Scale in Venture Capital Globalization: A Clustered Globalization Model>"
Ravi Madhaven, Katz Graduate School of Business, University of Pittsburgh, and Akie Iriyama, SUNY Buffalo
Chapter 29
<"The Development of Venture Capital: Macroeconomic, Political and Legal Determinants>"
Stefano Bonini, Bocconi University and New York University
Chapter 30
<"A Comparative Analysis of Venture Capital Investment in the U.S. and Europe>"
Roman Kraeussl, VU University Amsterdam, and Stefan Krause, Banque de France
Chapter 31
<"The Role of Geographic Proximity in Venture Capital>"
Douglas Cumming, Schulich School of Business, York University, and Na Dai, SUNY Albany
Chapter 32
<"Geography and Venture Capital Investment in the United States 1995-2009>"
Emanuel Shachmurove, Esq., Independent, and Yochanan Shachmurove, The City College of the City University of New York, and Department of Economics University of Pennsylvania
Chapter 33
<"The Role of Government, Venture Capital, and Banks in Closing Liquidity Gaps in the SME Sector of an Emerging Market>"
Darek Klonowski, Brandon University

About the Author

Edited by Douglas Cumming, Professor and Ontario Research Chair, York University

Douglas Cumming is Professor of Finance and Entrepreneurship and the Ontario Research Chair at the Schulich School of Business, York University. His research is primarily focused on venture capital, private equity, IPOs, law and finance, market surveillance and hedge funds. He has published over 70 refereed papers in leading journals, and is the co-author (with Sofia Johan) of Venture Capital and Private Equity Contracting: An International Perspective (2009 Elsevier). He has consulted for a variety of governmental and private organizations in Australasia, Europe and North America.

Contributors: 
Douglas Cumming.; Alexander Groh.; Joern Block.; Geertjan de Vries.; Philipp Sandner.; CNV Krishnan.; Ron Masulis.; Jennifer M. Walske.; Andrew Zacharakis.; Gary Dushnitsky.; Joseph A. McCahery.; Erik P.M. Vermeulen.; Susan Chaplinsky.; Mariarosa Scarlata.; Luisa Alemany.; Chris Yung.; Marina Balboa.; Jose Marti.; Yong Li.; Sophie Manigart.; Arnout Seghers.; Denis Trapido.; Dietmar Leisen.; Richard Smith.; Ola Bengtsson.; Professor Utset.; Ron Christian Antonczyk.; Wolfgang Breuer.; Malte Brettel.; Paul Vronsky.; Wolfgang Bessler.; Julian Holler.; Martin Seim.; Jan Zimmerman.; Nina Yin.; John R. M. Hand.; Jess H. Chua.; Zhenyu Wu.; Jaeho Lee.; Sampsa Samila.; Ravi Madhavan.; Akie Iriyama.; Roman Kraeussl.; Stefan Krause.; Na Dai.; Emanuel Shachmurove, Esq.; Dr. Yochanan Shachmurove.; Darek Klonowski.

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