Venture Capital Investment - An Agency Analysis of UK Practice (Hardcover)

Venture capital is a relatively new investment form, especially in the UK and Europe. This text provides a systematic analysis of what drives investor-investee relations in venture capital markets. It employs a principal agent framework to provide a contemporary, global analysis of contracting relations practice. By developing this framework, Gavin Reid is able to develop an organizing principle for viewing the bewildering complexity of real-world venture capital activity. The principal-agent framework is simply and non-technically expounded and background information on the UK capital industry provided before the reader is presented with the main body of the work. This consists of a series of in depth case studies of investor-investee relations, based on empirical research and organized around the principal-agent method, which provides insights into contemporary UK venture capital practice. The text also considers risk management from the perspective of both contracting parties, information system development post-contract, and the "trading" of risk and information in pursuit of superior contracting between investors and investees. The author concludes by employing the principal-a