Title

Venture Capital and the Future of Corporate Finance

Authors

George W. Dent

Abstract

After discussing general venture capital principles, this Article analyzes how venture capitalists protect themselves against the managerial opportunism that plagues other passive investors. The Article then shows that venture capital, though not the long-sought panacea for minority shareholders, offers valuable lessons for both close and public corporations. Finally, the Article demonstrates that venture capital confirms Jensen's insight into the strength of private equity financing; thus, venture capital has the potential to transform corporate finance. To fully realize this potential, however, the law must change to better accommodate minority investors.

Keywords

Venture Capital, Corporate Finance

Publication Date

1992

Document Type

Article

Place of Original Publication

Washington University Law Quarterly

Publication Information

70 Washington University Law Quarterly 1029 (1992)

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