search query: @author Grünbichler, A. / total: 5
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| Author: | Grünbichler, A. Keiber, K. |
| Title: | Zur Finanzierungsproblematik von Gründungsunternehmen aus optionstheoretischer Sicht |
| Journal: | Zeitschrift für Betriebswirtschaft
1999 : ERGÄNZUNGSHEFT 3, p. 151-168 |
| Index terms: | VENTURE CAPITAL COMPANIES FINANCING OPTIONS |
| Language: | ger |
| Abstract: | This essay focuses on the venture capital firms' problem to raise capital for seed financing. The process of raising ca- pital for the start-up is time consuming. That means that between the need for and the actual receipt of capital one can observe a long time period. This implies a time gap of financing that can be explained by modelling an investor's option to provide capital for the start-up. Assuming two different plausible stochastic processes for the value of the venture it is shown how to deduce decision rules that pin down the problem from the perspective of financial theory. Generally an investor can take advantage of delaying the financial engagement but if competition for capital be- tween venture capital firms exists the time gap becomes shorter. Finally the viewpoint of option theory and alterna- tive sources for seed-financing are mentioned. |
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