Non-financial benefits of venture capital.

• Grant number: 97/11933-3
• Support Opportunities: Scholarships in Brazil - Post-Doctoral
• Start date: May 01, 1998
• End date: April 30, 2000
• Field of knowledge: Applied Social Sciences - Economics - Fiscal and Monetary Policies
• Principal Investigator: Antonio Gledson de Carvalho
• Grantee: Antonio Gledson de Carvalho
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

Venture capital has been a successful non-traditional source of funds. It is believed that venture capital can provide funds for firms that otherwise would not be funded. Nonetheless, it remains the question hither venture capital adds value to the projects it funds. In this research. I investigate the conjecture that venture capital adds value by transferring valuable information from past to new projects. More specifically, venture capitalists transfer information about the qualification of managers. (AU)