To better understand the impact of venture capital investment in selected companies governance and financing structures, we examined the post-IPO experience of 190 biotechnology and healthcare companies. In virtually all cases, reducing the involvement of venture capitalists, the role of the founder-entrepreneur in strategic decision making. This was invested by the greater proportion of outside directors with venture capitalists and represented the smaller proportion of entrepreneurs who remained her office … Read more »

To better understand the impact of venture capital investment in selected companies governance and financing structures, we examined the post-IPO experience of 190 biotechnology and healthcare companies. In virtually all cases, reducing the involvement of venture capitalists, the role of the founder-entrepreneur in strategic decision making. This was invested by the greater proportion of outside directors with venture capitalists and represented the smaller proportion of entrepreneurs, the officers remained in mandates or after the IPO. We also found that venture capitalists rarely invest alone, rather offers to share in the venture capital partners to structure both risks and opportunities.
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from
David R. Williams,
W. Jack Duncan,
Peter M. Ginter
Source: Business Horizons
9 sides.
Publication Date: Jul 15, in 2006. Prod #: BH202-PDF-ENG
Structuring deals and governance after the IPO: entrepreneurs and venture capitalists in high-tech start-ups HBR case solution

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