"exceptionally clear evidence on the importance of financial contracting"

-- Joe McCahery, Professor of Corporate Governance and Business Innovation, University of Amsterdam, Amsterdam Center of Law and Economics

"This book is the first to cover the two most important subjects rooted in law and economics within the VC/PE industry:

• Financial implications of contracts, which are material to incentives, rewards, and the allocation of risks
• National and regional differences in investment decisions and outcomes

This book is unique in its focus on contract terms used in the VC/PE industry. Other books present straightforward corporate finance approaches to the VC/PE industry, helping people analyze companies and develop businesses according to established economic principles. But many key decisions require an understanding of the ways that law and economics work together. With the help of large datasets, this book offers broad perspectives and principles that enable readers to deduce the economic implications of specific contract terms. This approach avoids the common pitfall of implying that contractual terms apply equally to firms in any industry anywhere in the world. This book examines why financial contracts are written in different ways, and the implications of such contracts for investee performance."