Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 29 April 2011
Revision date: 14-Jul-2011
Length: 11 pages
Data source: Published sources
Abstract
Venture capital by necessity is a long- run investment. Consequently, since the mid-1960s virtually all venture financing has been raised through private partnerships with a ten-year or longer life span. To govern these investments, complex contracts have sprung up between venture capitalists and limited partners. These contracts provide an insight into the complex challenge of raising and managing a venture capital fund.
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Abstract
Venture capital by necessity is a long- run investment. Consequently, since the mid-1960s virtually all venture financing has been raised through private partnerships with a ten-year or longer life span. To govern these investments, complex contracts have sprung up between venture capitalists and limited partners. These contracts provide an insight into the complex challenge of raising and managing a venture capital fund.