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Contracting in Venture Capital

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The Palgrave Encyclopedia of Private Equity

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Synonyms

Board-, control-, and voting rights in startups; Cash flow allocation rights in startups; Cash flow- and control rights in Venture Capital; Cash flow distributions in startups; Certificates of Incorporation in startups; Contracting between entrepreneurs and Venture Capital investors; Contracting in startups; Contracts between startups and venture capitalists; Contractual agreements in Venture Capital

Description

This chapter provides a detailed overview of contractual cash flow- and control rights between entrepreneurs and Venture Capital investors in startups. Besides introducing the most important rights, along with specific examples, and their implications for the interaction between entrepreneurs and Venture Capital investors, the chapter also provides an empirical overview of the application and usage of the rights across different regional markets.

Introduction

Venture Capital (VC) markets are made up of three major institutional players: the startups – or, on an...

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Author information

Authors and Affiliations

  1. School of Business Administration, American University of Sharjah, Sharjah, United Arab Emirates

    Christian Rauch

Authors
  1. Christian Rauch
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Corresponding author

Correspondence to Christian Rauch .

Editor information

Editors and Affiliations

  1. Florida Atlantic University, Boca Raton, FL, USA

    Douglas Cumming

  2. Lancaster University Management School, Lancaster, UK

    Benjamin Hammer

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Rauch, C. (2023). Contracting in Venture Capital. In: Cumming, D., Hammer, B. (eds) The Palgrave Encyclopedia of Private Equity. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-38738-9_52-2

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  • DOI: https://doi.org/10.1007/978-3-030-38738-9_52-2

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-38738-9

  • Online ISBN: 978-3-030-38738-9

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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Chapter history

  1. Latest

    Contracting in Venture Capital
    Published:
    16 November 2023

    DOI: https://doi.org/10.1007/978-3-030-38738-9_52-2

  2. Original

    Contracting in Venture Capital
    Published:
    12 July 2023

    DOI: https://doi.org/10.1007/978-3-030-38738-9_52-1

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