4,882 research outputs found

    The Incentives to Start New Companies: Evidence from Venture Capital

    Get PDF
    The standard venture-capital contract rewards entrepreneurs only for creating successful companies that go public or are acquired on favorable terms. As a result, entrepreneurs receive no help from venture capital in avoiding the huge idiosyncratic risk of the typical venture-backed startup. Entrepreneurs earned an average of 9millionfromeachcompanythatsucceededinattractingventurefunding.Butentrepreneursaregenerallyspecializedintheirowncompaniesandbeartheburdenoftheidiosyncraticrisk.Entrepreneurswithacoefficientofrelativeriskaversionoftwowouldbewillingtoselltheirinterestsforlessthan9 million from each company that succeeded in attracting venture funding. But entrepreneurs are generally specialized in their own companies and bear the burden of the idiosyncratic risk. Entrepreneurs with a coefficient of relative risk aversion of two would be willing to sell their interests for less than 1 million at the outset rather than face that risk. The standard financial contract provides entrepreneurs capital supplied by passive investors and rewards entrepreneurs for successful outcomes. We track the division of value for a sample of the great majority of U.S. venture-funded companies over the period form 1987 through 2005. Venture capitalists received an average of $5 million in fee revenue from each company they backed. The outside investors in venture capital received a financial return substantially above that of publicly traded companies, but that the excess is mostly a reward for bearing risk. The pure excess return measured by the alpha of the Capital Asset Pricing Model is positive but may reflect only random variation.

    Computers for Teachers: A qualitative evaluations of Phase 1

    Get PDF

    The Preferential Trade Area (PTA) for Eastern and Southern African states: strategy, progress, and problems

    Get PDF
    The Preferential Trade Area (PTA) of Eastern and Southern African States is a relatively new economic grouping of states that is designed to foster sub-regional cooperation and integration. This paper discusses the strategy that lies behind the establishment of the PTA, provides an overview of sub-regional trade and obstacles to trade before the formation of the PTA, describes the progress of the PTA since it became operational in July, 1984, and assesses that progress and the problems that have been encountered. While there are many aspects of the PTA, including industrial and agricultural cooperation, this paper focuses primarily on sub-regional trade and trade-related issues

    Helping primary school pupils to understand the relationship between needs, wants and technology

    Get PDF
    This research might help you...To consider the purposes of the activities in your classroom. If you want pupils to reflect on something you will need to give appropriate time, stimulus and means of responseTo use reading and discussing stories as a means of enabling pupils to think about things outside their immediate experienceTo put designing and making activities in a historical context which has personal appeal and involvementTo link questions to designing and making activities in a way that enables pupils to develop a wider appreciation of technologyI have been struck by how many children in primary school see technology in a limited way; limited in fact to their own designing and making in school. Through these activities they had difficulty in grasping a wider view of technology. In this article I describe my attempts to widen their perception of technology

    Picture Books and the Literary Connection: A Bibliography

    Get PDF

    The role of the soil microbial comunity in decomposition in a raised mire system

    Get PDF
    Peatlands make up 3% of the earth's land surface and contain about one third of the C contained in soils globally. The role of peatlands in the C cycle is as a net sink. Organic matter accumulates in these areas because the rate of net primary productivity (NPP) exceeds the rate of decay. Peatlands are often harsh environments, characterized by cold, wet and anoxic conditions, therefore it is not accelerated NPP which exerts the main control over the accumulation of peat, but the slow rate of decomposition. During the decomposition process, nearly all organic matter passes through the soil microbial pool, and so the soil microbial community is an important factor in the decomposition process. Despite the obvious importance of the soil microbial community in decomposition in peatlands, our knowledge of their role in peatland C cycling is still largely limited. This thesis addresses some aspects of the soil microbial community and investigates their role in decomposition in a raised mire. The soils in a raised mire system may be categorized according to their nutrient input into nutrient rich, mineral soils and soils of the lagg fen, and nutrient poor, soils of the mire expanse. The soil microbial community in the three soils was characterized in terms of size, activity and composition. The size of the soil microbial community in the soils of the mire expanse was small in comparison with that of the mineral soils and soils of the lagg fen, however it was very active. The hypothesis that nutrients restrict the size of the soil microbial community in the soils of the mire expanse was tested. The data showed that nutrients did not significantly effect the size of the soil microbial community. Litterbags were used to investigate the decomposition of a range of plant species found on the different soils and mass loss and C02 production were used as indicators of decomposition. C02 production was a more sensitive and reliable measure of decomposition than mass loss. The size of the soil microbial community was an important factor in decomposition rate. Litter quality of the above ground biomass was not related to decomposition rate. The relationship between the size of the microbial community in contact with decaying plant material and decomposition was investigated. In this study, microbial colonization of decaying litter was not correlated with the measure of litter quality used. This work has provided baseline information the environmental factors that influence decomposition and future work should focus on investigating the changes in the soil microbial community during the decomposition process
    • …
    corecore