International Journal of Business and Economics

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.
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.