The Price of Diversifiable Risk in Venture Capital and Private Equity ∗

Abstract

Association meeting, the NYSE-Stanford conference on Entrepreneurial Finance and IPOs, the Yale con-ference on Entrepreneurship, VC and IPOs, and the New York University conference on Entrepreneurship, VC and IPOs for their comments. We are grateful to The Eugene M. Lang Entrepreneurship Center for financial support. Special thanks go to Jesse Reyes and Thomson Venture Economics, who provided the Venture Economics data and to Maryam Haque and Brendan Hughes of Dow Jones who provided LP Source. All errors are our own