International Journal of Business and Economics Volume 2, No. 3 December, 2003

Venture Capital and Risk in High-Technology Enterprises

Gavin C. Reid

Department of Economics, University of St. Andrews, U.K.

Julia A. Smith

Cardiff Business School, Cardiff University, U.K.

Abstract

We find UK investors and entrepreneurs are significantly concordant in rankings of investments and key factors for risk but significantly discordant on risk classes. Investors emphasise agency risk (e.g., motivation, empowerment, alignment), and entrepreneurs emphasise business risk (e.g., market opportunities).

Keywords：principal-agent, high-tech, risk.

JEL Classifications：D8, M2, M4.

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