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Venture Capital and Private Equity Contracting by Sofia A. Johan, Douglas J. Cumming

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Chapter 15. Investor Value-added

15.1. Introduction and Learning Objectives

Part IV consists of Chapters 15 to 18, and it considers the efficiency of venture capital investment in terms of investor value-added. Investor value-added may be viewed as involving the following issues:

  1. The relation between venture capital and private equity and innovative activity
  2. Contract terms and investor value-added
  3. Location of investee firms (e.g., intra- versus interprovincial)
  4. Optimal portfolio size/manager
  5. Investment duration

This chapter provides a brief overview of the issues pertaining to each of the preceding items. Further, in this chapter we provide a road map of items considered in more detail in Chapters 16 to 18.

15.2. Innovation and Efficiency ...

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