Product Description

In "The Venture Capital Cycle", Paul Gompers and Josh Lerner correct widespread misperceptions about the nature and role of venture capitalists and provide an accessible and comprehensive overview of the venture capital industry. Bringing together fifteen years of ground-breaking research into the form and function of venture capital firms, they examine the fund-raising, investing, and exit stages of venture capitalists. Three major themes run throughout the process: venture investors confront tremendous information and incentive problems; venture capital processes are inherently interrelated; and the venture capital industry adjusts very slowly to shifts in the demand for and the supply of investment capital. This second edition has been thoroughly revised in light of recent research findings and includes six new chapters. These cover such topics as what determines the level of venture capital fund-raising and how tax policy influences the demand for venture capital; what kind of distortions are introduced when the venture capital market goes dramatically up, a question prompted by the 1999-2000 market bubble; how the venture capital industry does indeed spur innovation, an important determinant of economic growth; whether and under what circumstances governments can be effective venture capitalists; whether venture capital firms affiliated with investment-banks are prone to conflicts of interest with public offerings; and how lockups on initial public offerings are used to limit conflicts of interest.

Product Details

• Amazon Sales Rank: #539886 in Books
• Published on: 2006-09-05
• Original language: English
• Number of items: 1
• Binding: Paperback
• 581 pages

About the Author
Paul Gompers and Josh Lerner are, respectively, the Roy and Elizabeth Simmons Professor of Business Administration and the Jacob H. Schiff Professor of Investment Banking at the Harvard Business School. Both are affiliated with the National Bureau of Economic Research.

Customer Reviews

Excellent insight into the VC world.
Through detailed statistical analysis the dynamics surrounding the VC world's objective and strategy setting decisions are uncovered and proven. Although this book is suitable for Post Grad level students of finance, Gomper and Lerner also manage to explain and set out the book so that any person with an interest in this subject can gain equally invaluable knowledge, regarding what VCs are driven by and what effects they can have on a company. Through the understanding you gain from reading The Venture Capital Cycle, you will find yourself in a stronger position when dealing with VCs.