PIPE Dreams? The Performance of Companies Issuing Equity Privately

Private Investments in Public Equity (PIPEs) have become an important source of financing for young, publicly traded firms whose poor operating performance may limit alternative financing options. We propose that firms are motivated to sell these securities to minimize costs associated with asymmetric information. We find that both the security structure and the investor composition of a PIPE security matter in the subsequent performance of the issuing firm. Poor post-issuance performance is associated with securities where investors obtain significant repricing rights, which protect them from future stock price declines. Furthermore, companies that obtain financing from hedge funds tend to under-perform companies that obtain financing from other institutional investors. We argue that hedge funds act as investors of last resort, playing an important role in the market for young, high-risk firms with substantial asymmetric information. Hedge funds are willing to fund such high-risk companies because they can protect against possible price declines in the issuing companies by either negotiating PIPE securities with repricing rights or by entering into short positions of the underlying stocks of the issuing companies.

Research Brief

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Mentoring in Startup Ecosystems

Effective mentoring programs are very difficult to structure and execute, even with the best intentions and reasonable budget. In this report we conduct a multi-institution empirical analysis of mentoring in startup ecosystems to determine what helps entrepreneurial teams and mentors thrive in mentorship programs. We survey the perspectives of mentees, mentors and university and accelerator program administrators. Our empirical findings reveal that personality and the malleability of entrepreneurial skills among the mentee and the mentor matter. Further we find that university programs lag behind non-university accelerator programs along several important dimensions, when it comes to matching mentees to mentors and providing support during the program and following up after the completion of the program. We provide several prescriptive recommendations for students, startup founders, mentors and program administrators, and outline a research agenda for studying mentoring in entrepreneurial ecosystems.https://deepblue.lib.umich.edu/bitstream/2027.42/139028/1/1376_Sanchez-Burks.pd

How reproductive allocation and flowering probability of individuals in plant populations are affected by position in stand size hierarchy, plant size and CO2 regime

We investigate the effect of position within a size-structured population on the reproductive allocation (RA) and flowering probability of individual plants of Sinapis arvensis. We also assess the effects of plant size and changing level of CO2 on both responses

Towards a flexible Decision Support Tool for MSY-based Marine Protected Area design for skates and rays

Peer-reviewed Paper. This is a pre-copyedited, author-produced version of an article accepted for publication in ICES Journal of Marine Science following peer review. The version of record Dedman, S., Officer, R., Brophy, D., Clarke, M., & Reid, D. G. (2017). Towards a flexible Decision Support Tool for MSY-based Marine Protected Area design for skates and rays. Ices Journal of Marine Science, 74(2), 576–587. https://doi.org/10.1093/icesjms/fsw147 is available online at: https://academic.oup.com/icesjms/article/74/2/576/2669563 & https://doi.org/10.1093/icesjms/fsw147.It is recommended that demersal elasmobranchs be managed using spatial proxies for Maximum Sustainable Yield. Here we combine escapement biomass—the percentage of the stock which must be retained each year to conserve it—with maps of predicted Catch Per Unit Effort (CPUE) of four ray species [cuckoo (Leucoraja naevus), thornback (Raja clavata), blonde (Raja brachyura), and spotted (Raja montagui)], created using Boosted Regression Tree modelling. We then use a Decision Support Tool to generate location and size options for Marine Protected Areas to protect these stocks, based on the priorities of the various stakeholders, notably the minimisation of fishing effort displacement. Variations of conservation/fishing priorities are simulated, as well as differential priorities for individual species, with a focus on protecting nursery grounds and spawning areas. Prioritizing high CPUE cells results in a smaller closed area that displaces the most fishing effort, whereas prioritizing low fishing effort results in a larger closed area that displaces the least fishing effort. The final result is a complete software package that produces maps of predicted species CPUE from limited survey data, and allows disparate stakeholders and policymakers to discuss management options within a mapping interface

Electric Propulsion Research and Development at NASA

Electric propulsion (EP) is an important technology for NASA. It has played a major role on three missions, namely Deep Space 1, Dawn and Space Technology 7, and it is planned for use on many more. The ion propulsion system for the ongoing Dawn mission has achieved several notable accomplishments, including providing a total velocity change (delta-V) of over 11 km/s to the spacecraft. As a result of these successes, solar electric propulsion (SEP) is now broadly recognized as an essential technology for both robotic and human exploration. NASA is currently conducting many projects focused on research and development of EP for a variety of applications. All three of NASA's mission directorates that deal directly with space exploration are actively engaged in supporting work in this area. This paper describes these projects in more detail, including the specific engineering activities being conducted at NASA's main centers for EP technology development, namely Glenn Research Center (GRC) and the Jet Propulsion Laboratory (JPL)