Venture Capital : Investment Strategies, Structures, and Policies

The purpose of this book is to provide a comprehensive view of venture capital by describing the current state of research and practices on this topic. The chapters comprised here discuss sources of capital (angel investment, limited partnerships, corporate funds, government funds), due diligence, financial contracts and monitoring, the efficiency implications of VC investment, investment returns and performance, international differences in venture capital markets, and regulation and public policy. This book is organized into five parts which collectively cover each of these areas, as explained below. Part I of this book begins with a review of alternative forms of venture capital. Part II of this book highlights the structure of venture capital investments. Part III of this of this book examines various aspects of the role of venture capitalists in adding value to their investee firms. Part IV of this book examines drivers of venture capitalists' returns. Finally, Part V of this book examines international differences in venture capital and the role of public policy.

DOUGLAS CUMMING, CFA, PhD, JD, is an Associate Professor of Finance and Entrepreneurship and the Ontario Research Chair at the Schulich School of Business, York University. His research is primarily focused on law and finance, market surveillance, hedge funds, venture capital, private equity, and IPOs, and he has published over fifty refereed articles in leading journals. Cumming was the recipient of the 2009 Canadian Institute of Chartered Business Valuators Research Award, the 2008 Paolo Baffi Centre on Central Banking and Financial Regulation Research Award, the 2008 AIMA Canada-Hillsdale Research Award, the 2005 PWC Global Competency Research Excellence Award, and the 2004 Iddo Sarnat Annual Memorial Award for the best paper published in the Journal of Banking and Finance. He is a research associate with numerous financial and educational groups, and consults for a variety of governmental and private organizations, including Wilshire Associates. Cumming is coauthor (along with his wife, Sofia Johan) of the new book Venture Capital and Private Equity Contracting: An International Perspective.