Skip to main content
Journal cover image

Efficient venture capital financing combining debt and equity

Publication ,  Journal Article
Marx, LM
Published in: Review of Economic Design
January 1, 1998

I present a model of venture capital contracting in which contracts that involve a mixture of both debt and equity are efficient and dominate pure-equity and pure-debt financing. The optimal contract balances the venture capitalist's incentive to intervene in the project and the entrepreneur's desire for control. © Springer-Verlag 1998.

Duke Scholars

Published In

Review of Economic Design

DOI

ISSN

1434-4742

Publication Date

January 1, 1998

Volume

3

Issue

4

Start / End Page

371 / 387

Related Subject Headings

  • Economic Theory
  • 3803 Economic theory
  • 3801 Applied economics
  • 1402 Applied Economics
  • 1401 Economic Theory
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Marx, L. M. (1998). Efficient venture capital financing combining debt and equity. Review of Economic Design, 3(4), 371–387. https://doi.org/10.1007/s100580050022
Marx, L. M. “Efficient venture capital financing combining debt and equity.” Review of Economic Design 3, no. 4 (January 1, 1998): 371–87. https://doi.org/10.1007/s100580050022.
Marx LM. Efficient venture capital financing combining debt and equity. Review of Economic Design. 1998 Jan 1;3(4):371–87.
Marx, L. M. “Efficient venture capital financing combining debt and equity.” Review of Economic Design, vol. 3, no. 4, Jan. 1998, pp. 371–87. Scopus, doi:10.1007/s100580050022.
Marx LM. Efficient venture capital financing combining debt and equity. Review of Economic Design. 1998 Jan 1;3(4):371–387.
Journal cover image

Published In

Review of Economic Design

DOI

ISSN

1434-4742

Publication Date

January 1, 1998

Volume

3

Issue

4

Start / End Page

371 / 387

Related Subject Headings

  • Economic Theory
  • 3803 Economic theory
  • 3801 Applied economics
  • 1402 Applied Economics
  • 1401 Economic Theory