The Center for Advanced Studies on the Foundations of Law and Finance invites you attend a seminar on
Venture Capital and European Corporate Laws: Bargaining in the Shadow of Regulatory Constraints
Casimiro A. Nigro (Goethe University and LawFin)
Zoom URL
Meeting ID: 694 6755 8193
Password: 432503
Abstract:
The venture capital (“VC”) industry and its managers – a.k.a. venture capitalists – have built a solid reputation for spurring innovation and economic growth, emerging as one of the crown jewels of the US economy in the 1980s and thus rather quickly turning into a dream for policymakers globally.
VC-driven value creation does largely rests on a very peculiar capital management process, which in turn requires, inter alia, the adoption of a very complex contractual technology at the VC-backed firm level. Consistent with the predictions of financial contracting theory, this contractual technology seeks to address the multiple market imperfections market imperfections inherent in financing high-tech firms, as well as braiding the existential logic of VC-backed firms with the VC business model’s idiosyncratic organizational features. Corporate law’s relatively flexible or rigid design can affect the adoption of this contractual technology and its overall functionality, thus ultimately emerging, at the margin, as a determinant of contract formation and hence overall VC activity.
Further information will be posted soon.
