Kaboth, Julian; Lodowicks, Arnd; Schreiter, Maximilian; … - In: Review of Quantitative Finance and Accounting 60 (2022) 3, pp. 877-914
Venture capital (VC) often involves complex equity contracts with so-called preferential rights affecting the allocation of exit proceeds among different share classes and investors. We structure exit-relevant preferential rights in a two-dimensional framework and develop a contingent claims...