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Reports Outline General Finance Study Findings from C. Casamatta and Colleagues (Dealing with Venture Capitalists: Shopping Around or Exclusive...

September 13, 2014



Reports Outline General Finance Study Findings from C. Casamatta and Colleagues (Dealing with Venture Capitalists: Shopping Around or Exclusive Negotiation)

By a News Reporter-Staff News Editor at Investment Weekly News -- A new study on General Finance is now available. According to news reporting originating in Pau, France, by VerticalNews journalists, research stated, "We study the fund-raising strategy of an entrepreneur when investors have private information about his project's profitability. The entrepreneur cares about monetary profits and about the probability to obtain financing."

The news reporters obtained a quote from the research, "If he contacts both venture capitalists (VCs) simultaneously, he obtains high monetary profits. If he commits to a period of exclusive negotiation with one VC, he increases the probability to obtain financing but deal terms deteriorate. The optimal negotiation strategy results from this tradeoff."

According to the news reporters, the research concluded: "We also solve for the equilibrium financial contracts and obtain implications for VCs' portfolios and entrepreneurs' deals."

For more information on this research see: Dealing with Venture Capitalists: Shopping Around or Exclusive Negotiation. Review of Finance, 2014;18(5):1743-1773. Review of Finance can be contacted at: Oxford Univ Press, Great Clarendon St, Oxford OX2 6DP, England. (Oxford University Press - www.oup.com/; Review of Finance - rof.oxfordjournals.org)

Our news correspondents report that additional information may be obtained by contacting C. Casamatta, Univ Pau CATT, Pau, France.

Keywords for this news article include: Pau, France, Europe, General Finance

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Investment Weekly News


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