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The Venture Capital Revolution

Author

Listed:
  • Paul Gompers
  • Josh Lerner

Abstract

Venture capital has emerged as an important intermediary in financial markets, providing capital to young high-technology firms that might have otherwise gone unfunded. Venture capitalists have developed a variety of mechanisms to overcome the problems that emerge at each stage of the investment process. At the same time, the venture capital process is also subject to various pathologies from time to time, which can create problems for investors or entrepreneurs. This article reviews the recent empirical literature on these organizations and points out area where further research is needed.

Suggested Citation

  • Paul Gompers & Josh Lerner, 2001. "The Venture Capital Revolution," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 145-168, Spring.
  • Handle: RePEc:aea:jecper:v:15:y:2001:i:2:p:145-168
    Note: DOI: 10.1257/jep.15.2.145
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.15.2.145
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    References listed on IDEAS

    as
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    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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