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| Volume2,
No. 3,
December
2003 |
Back |
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Venture Capital and Risk in High-Technology Enterprises |
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Gavin C. Reid |
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Department of Economics, University of St. Andrews, U.K. |
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Julia A. Smith |
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Cardiff Business School, Cardiff University, U.K. |
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Abstract |
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We find UK investors and entrepreneurs are significantly
concordant in rankings of investments and key factors for risk but
significantly discordant on risk classes. Investors emphasise
agency risk (e.g., motivation, empowerment, alignment), and
entrepreneurs emphasise business risk (e.g., market opportunities). |
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Key words:
principal-agent; high-tech; risk
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| JEL
classification:
D8;
M2;
M4 |
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