Venture Capital Contracting and the Valuation of High-technology Firms

Contents......Page 8
List of Figures......Page 10
List of Tables......Page 12
List of Abbreviations......Page 16
List of Contributors......Page 18
1. Venture Capital Financing of Innovative Firms: An Introduction......Page 26
Part I: Venture Capital Financing......Page 52
2. Venture Capital and the Structure of Capital Markets: Banks versus Stock Markets......Page 54
3. Going Public and the Option Value of Convertible Securities in Venture Capital......Page 85
4. Evidence on the Venture Capitalist Investment Process: Contracting, Screening, and Monitoring......Page 98
5. The Value of Benchmarking......Page 108
6. Venture Capital on the Downside: Preferred Stock and Corporate Control......Page 133
Part II: Innovation, Law, and Finance......Page 156
7. Law, Innovation, and Finance......Page 158
8. Business Organization Law and Venture Capital......Page 187
9. Venture Capital and Innovation: Clues to a Puzzle......Page 213
Part III: Valuation of High-tech Firms......Page 250
10. Real Options: Principles of Valuation and Strategy......Page 252
11. The Market Valuation of Biotechnology Firms and Biotechnology R&D......Page 276
12. Internet Portals as Portfolios of Entry Options......Page 306
13. The Dotcom Premium: Rational Valuation or Irrational Exuberance?......Page 322
14. The Liquidation Preference in Venture Capital Investment Contracts: A Real Option Approach......Page 343
Part IV: Venture Capital Exits and IPOs......Page 362
15. The Extent of Venture Capital Exits: Evidence from Canada and the USA......Page 364
16. Greenhorns, Yankees, and Cosmopolitans: Venture Capital, IPOs, Foreign Firms, and US Markets......Page 396
17. Lock-in Agreements in Venture Capital-backed UK IPOs......Page 421
18. The Effect of Market Conditions on Initial Public Offerings......Page 462
19. The Rise and Fall of the European New Markets: On the Short- and Long-run Performance of High-tech Initial Public Offerings......Page 489
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