A survey of venture capital research
This survey reviews the growing body of academic work on venture capital. It lays out the major data sources used. It examines the work on venture capital investments in companies, looking at issues of selection, contracting, post-investment services and exits. The survey considers recent work on organizational structures of venture capital firms, and the relationship between general and limited partners. It discusses the work on the returns to venture capital investments. It also examines public policies, and the role of venture capital in the economy at large.
We would like to thank Klazina van den Berg and Yaping Mao for their valuable research assistance. All errors are ours. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. Forthcoming in George Constantinides, Milton Harris, and René Stulz (eds.) Handbook of the Economics of Finance, vol 2, Amsterdam, North Holland, 2012.