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This paper offers a new explanation for the prevalent use of convertible securities in venture capital finance. Convertible securities can be used to endogenously allocate cash flow rights as a function of the realized quality of the project. This property can be used to mitigate the double...
Persistent link: https://ebvufind01.dmz1.zbw.eu/10001440846
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Persistent link: https://ebvufind01.dmz1.zbw.eu/10013422973
This paper offers a new explanation for the prevalent use of convertible securities in venture capital finance. Convertible securities can be used to endogenously allocate cash flow rights as a function of the realized quality of the project. This property can be used to mitigate the double...
Persistent link: https://ebvufind01.dmz1.zbw.eu/10009781712
Persistent link: https://ebvufind01.dmz1.zbw.eu/10000998173