We provide new rationales for corporate venturing, based on competition for talented managers. As returns to venturing increase, firms engage in corporate venturing for reasons other than capturing these returns. First, higher venturing returns increase managerial compensation, to which firms...

We model financial contracting in entrepreneurial ventures. In our incomplete contracts framework, the entrepreneur can design contracts contingent on three possible control right allocations: entrepreneur control, investor control, and joint control, with each allocation inducing different...