This paper shows that geographical elements can form an essential component of contract design in addition to more traditional ingredients such as information problems, moral hazard and legal institutions. We analyze cash flow contingencies included in 1,804 contracts between U.S. venture...

I show that VCs frequently have the right to veto specific operational and financial decisions even though they are equity investors with access to other powerful governance mechanisms. Across 182 first-round U.S. venture capital investments, restrictive covenants are commonplace with 92 percent...

PIPEs are an important source of financing for many companies, yet controversial due to their harsh contractual structures. We present a detailed study of how PIPE contracts allocate contingent cash flow rights between investor and issuer. We study the role of placement agents in PIPE contract...

PIPEs are an important source of financing for many companies, yet controversial due to their harsh contractual structures. We present a detailed study of how PIPE contracts allocate contingent cash flow rights between investor and issuer. We find that issuers advised by high-ranking...