Search results for "Social venture"
showing 3 items of 13 documents
Contract and Asset Values in Venture Capital Financings
2009
In venture capital financings a venture capitalist buys some fraction of a company, for a stated amount of money, through preferred shares. It is common practice in empirical and theoretical analyses to infer from this transaction a value for the entire company, which we call the contract value. Owners do not hold shares with the same rights and so the contract value misrepresents the company value of all assets (asset value). This paper studies a stylized venture capital market, calculates the ratio of contract to asset value, and derives the expected returns both at the level of venture capital funds and at the company level. We study quantitatively the impact on econometric analyses and …
The Origins of Social Ventures
2021
This chapter addresses the social venture as a form of organization that has a role in the current society. In an economy based on markets, the intervention of multiple actors by itself—like governments, social movements, charity, and social ventures—cannot ensure the mechanisms necessary to the proper working of the system. In this way, markets present a set of failures and externalities that government action tries to solve. However, government action is limited due to a set of circumstances. Social movements and charity emerge to overcome the government’s limitations. Social entrepreneurship, as the last organization analyzed in this chapter, arises when social movements and charities fa…
Venture capital syndication and its causal relationship with performance outcomes
2010
Venture capital firms benefit from frequent and diverse syndication ties; these are causal of increased IPO generation.