Abstract
The financing of knowledge-based innovative companies that pursue the creation of new products and services is very risky, and requires special skills and the use of sophisticated contracts. Venture capital firms are small partnerships of highly skilled investors with business and entrepreneurial experience. They raise money from institutional investors and use it to fund companies selected through a thorough screening process. Venture investors become actively involved with their companies to help them commercialize their products and services. They also exert tight control on entrepreneurs by using sophisticated contracts. Originating in the US, venture capital is now a global industry.
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Da Rin, M. (2018). Venture Capital. In: Augier, M., Teece, D.J. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-00772-8_680
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DOI: https://doi.org/10.1057/978-1-137-00772-8_680
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