• 1Introduction
  • 1.1 Relevancy of the Topic
  • 1.2 Objectives of the Study
  • 1.3 Layout of the Study
  • 2 Sources of Capital for Young Growth Companies
  • 2.1 Characterization of Young Growth Companies
  • 2.2 Types of Finance
  • 2.2.1 Types of Finance available to young growth companies
  • 2.2.2 Viability of the financing options for young growth companies
  • 2.3 Venture Capital as Financial Concept
  • 3 Economic Methods for the Analysis of Financial Relationships
  • 3.1 Neoclassic Financial Theory
  • 3.2 Theory of the firm
  • 3.3 A Clarification of Agency Costs
  • 3.4 Inference from the Methods
  • 4 Agency Problems Related to Equity Capital for Young Growth Companies
  • 4.1 Moral Hazard
  • 4.2 Holdup
  • 4.3 Adverse Selection.
  • 4.4 Actual Agency Problems in the Investor – Investee Relationship
  • 5 Solutions and Mitigations to the Agency Problems
  • 5.1 Aligning Interests
  • 5.2 Measures against Moral Hazard
  • 5.3 Measure against Holdup: Vertical Integration
  • 5.4 Measures against Adverse Selection
  • 5.5 Creating a Dynamic Relationship
  • 5.6 Effects of Competition.
  • 5.7 The Competitive Role of Information
  • 5.8 Inference from the solutions and mitigations
  • 6 Venture Capital as Financial Intermediary
  • 6.1 Venture Capital as two-step agency relationship
  • 6.2 Relationship between Venture Capitalist and Venture
  • 6.3 Relationship between Investor and Venture Capitalist
  • 6.4 Advantageousness of Venture Capital as Intermediary
  • 6.5 Functions of Venture Capitalists as Intermediaries
  • 7 Conclusion and Outlook