Adverse Selection, Investor Experience and Security Choice in Venture Capital Finance: Evidence from Germany
分析了1990至2005年间336笔德国风险资本交易，发现投资者经验、逆向选择风险和公开股票市场前景影响金融证券的选择。
Abstract This article analyses 336 German venture capital transactions from 1990 to 2005 and seeks to determine why selected financial securities differ across deals. We find that a broad array of financial instruments is used, covering straight equity, mezzanine and debt‐like securities. Based on the chosen financial securities’ upside potential and downside protection characteristics, we provide an explanation for the differing use of these securities. Our results show that investors’ deal experience, adverse selection risks and economic prospects in the public equity market influence the selection of financial securities.