Understanding the Economic Value of Legal Covenants in Investment Contracts: A Real-Options Approach to Venture Equity Contracts

Valuing early-stage high-technology growth-oriented companies is a challenge to current valuation methodologies. This inability to come up with robust point estimates of value should not and does not lead to a breakdown of market liquidity: instead, efforts are redirected towards the design of investment contracts which materially skew the distribution of payoffs in favor of the venture investors. In effect, limitations in valuation abilities are addressed by designing the investment contracts as baskets of real options instead of linear payoff functions. This paper investigates four common features (covenants) of venture capital investment contracts from a real option perspective, using both analytical solutions and numerical analyis to draw inferences for a better understanding of contract features. The impact of the concept for pricing issues, valuation negotiation and for contract design are considered. It is shown, for example, how "contingent pre-contracting" for follow-up rounds is theoretically a better proposition than the simple "rights of first refusal" commonly found in many contracts. We also provide for results (such as timing of investments, lengths of rounds, choices of liquidation levels, conversion levels) that take into account full interaction of the different features considered. We document some complex facts, such as the concavity of the VC contract value depending on the amount invested at the different stages, the actual share impact of the most common anti-dilution feature, some endogenous motivation for early VC exits from otherwise performing companies and stress overall the importance of a full analysis for efficient contract negotiations and understanding.

IRISS (Increasing Resilience in Surveillance Societies) FP7 European Research Project, Deliverable D6.1: Civil Protection in a European Context, in A report on resilience in "democratic" surveillance societies. Civil protection in a European context, in A report on resilience in "democratic" surveillance societies

The term "civil protection" has different meanings and interpretations, sometimes varying from country to country. In the context of Europe, civil protection and its developing and multi-faceted relationship with resilience is a relatively recent phenomenon, arguably originating from the end of the cold war, commonly described as the period from the end of World War II to the early to mid-1990s, when the focus changed to civil protection from civil defence, with contingency plans being put in place by many countries for the civilian populations to organise, prepare to mobilise and defend themselves in the event of a major incident such as a nuclear attack or potential invasion by another country. Over the past two to three decades, and at the level of the European Union, the use of the term "civil protection" has become synonymous with the contingency and emergency planning arrangements that countries either individually and now increasingly collectively (such as the six regional European civil protection initiatives) have put in place to increase resilience and the ability to respond effectively both to the threat or occurrence of natural disasters, such as earthquakes and damage to the built environment, volcanic eruptions, forest fires, floods, landslides and man-made disasters such as marine pollution incidents or threats or actual acts of terrorism such as those experienced in London (2005) or Madrid (2004). . The European Union determined that increasing preparedness and resilience to natural or man-made disasters or to terrorism events would require greater humanitarian focus and co-ordination of resources at a community-based level. In response to this, the European Union adopted two pieces of legislation which cover European civil protection: first, Council Decision 2007/779/EC established a Community Civil Protection Mechanism and, second, Council Decision 2007/162/EC established a Civil Protection Financial Instrument. The Mechanism covers the response and some preparedness activities, while the Instrument enables actions in the three key areas of prevention, preparedness and response

IRISS (Increasing Resilience in Surveillance Societies) FP7 European Research Project, Deliverable D6.1: 2011 Christchurch earthquake, in A report on resilience in "democratic" surveillance societies

Located on the South Island of New Zealand, and sitting within the Canterbury region, the city of Christchurch (population: 341,000) is the country's second largest city. The Mw6.3 earthquake which hit Christchurch unexpectedly and catastrophically on 22 February 2011 at 12.51 killed over 180 people, injured a further 1500-2000, and was in fact an aftershock of a previous earthquake (Mw7.1) occurring on 4 September 2010 which resulted in no fatalities.This Report examines the emergent intertwined relationships between resilience, surveillance and big data in contemporary crisis management processes in a number of different settings. In doing so, the Report explores the evolution of established crisis management institutions and techniques alongside the increasing use of new technologies. At the heart of the Report, lies analysis of resilience and surveillance at national and local levels, involving different institutions, actors and actions

Delivering Smart Governance in a Future City: The Case of Glasgow

In 2013, Glasgow City Council received significant funding to develop innovative smart city applications, including the delivery of new electronic public services and the co-production of governance. This case study examines the processes that underpin the ways in which the 'Future City Glasgow programme' delivered 'smart governance', in the context of a regenerating post-industrial city. We assess the contribution of smart city technologies and data collection and monitoring processes designed to facilitate citizen engagement and sustainable governance practices. The Future City Glasgow programme ran from 2013-2015, and included the Open Glasgow project, and 'Demonstrator Projects' of: Energy Efficiency; Intelligent Street Lighting; Active Travel; and, Integrated Social Transport. Opportunities arose from these demonstrators for developing co-production and legacy initiatives. The case study provides insight into the ways in which citizens and local communities in Glasgow have been engaged in governance processes. This engagement has taken place via traditional and innovative smart city technologies, and in particular in relation to policy formulation, service design and delivery. It finds that the co-creation of governance is shaped by vested interests, that engagement is fragmented and partial, but at the same time new technologies, social media and shared learning opportunities offer innovative new ways for some citizens to influence local governance

Examining Anxiety Schemas through the Context of a Stress-Intrapersonal Model

Explicating vulnerability factors to anxiety difficulties is important as the National Comorbidity Study (NCS) lists anxiety as the most common and costly class of mental health disorders in the United States. Maladaptive schemas, as theorized by Young (1990), perpetuate anxiety pathology by hindering the individual’s ability to alter behaviors, thoughts, emotions, and overall approach to adverse events. Previous research indicates that intrapersonal resources can stymie the development of psychopathological features, even in the context of adverse life events (Floyd, Seltzer, Greenberg, & Song, 2013). The main purpose of the current study was to explore the relationship among adverse life events and anxiety schemas, and potential mediating variables, mindfulness and psychological flexibility. Using a two-wave longitudinal design, data were collected from a sample of 183 college students via an online survey. The average age of the participants was 21.4 year (SD= 2.2). Results suggest adverse life events directly and indirectly related to anxiety schemas. In terms of the indirect pathways, the relationship between adverse life events and anxiety schemas can be partially explained by psychological flexibility-control. In total the results offer beneficial implications in the prevention and treatment of anxiety features. Importantly, using evidenced-based techniques, such as ACT, designed to alter an individual’s relationships with their internal experiences may help to manage anxiety cognitions and promote healthier coping habits

Sheltering-in-privilege: Silicon Valley

We suggest that one source of understanding entrepreneurial resilience and regional culture is through the denizens of Silicon Valley, and how they are handling crisis situations. We surveyed 119 entrepreneurs, investors, and large company executives based in Silicon Valley during the first COVID-19 lockdown period between April and May 2020. Our data show that the entrepreneurs perceived the situation as severe but were cautiously optimistic. They embraced creative destruction and took it as a way to change the status quo for the better. They predicted the new normal in the industry by acknowledging the critical role of science and technology. The ecosystem seems to enhance entrepreneurial resilience in the region through the social structures and entrepreneurial cultural value

Smart Governance: Opportunities for technologically-mediated citizen co-production

Citizens increasingly contribute directly to the evolution of sustainable cities, in particular where new Information and Communication Technologies (ICTs) promise to transform urban governance into ‘Smart city governance’ and where ICTs are integrated in strategies for citizen participation and the co-production of public services and policy. This article provides a multi-disciplinary understanding of Smart city governance, including new insights around the opportunities for citizen engagement in the co-production of service-delivery and decision-making. Using findings from a review of Smart cities literature and practice, the article aims to establish the breadth of Smart city initiatives which emphasise citizen participation and the realities of delivering such initiatives in complex city environments. Emphasising the emerging role of the technologically ‘empowered’ citizen, a new conceptual model is presented, where mutual trust, shared understanding and new opportunities for co-production emerge in an environment mediated by new technology – this form of Smart governance is referred to here as ‘technologically-mediated municipal reciprocity’

The Sale of Edited Electoral Registers in Scotland: Implications for Privacy, Data Protection and Citizenship

This article provides an assessment of the recent phenomenon in Scotland and the United Kingdom of selling edited electoral registers to third parties, and reflects on the implications of this practice for privacy, data protection and citizen-state relations. Drawing on the results of the National Survey of Electoral Registration Officers in Scotland, information is presented on the sale of edited registers, the types of organisation purchasing registers, revenues generated and the number of electors ‘opting out’ of the edited register. This is the first time such information has been collected nationally and therefore represents a unique Scottish ‘snapshot’. The article argues that the sale of edited registers is contentious. The collection of personal information contained within the register is critical for the successful functioning of elections and consequently our representative democratic system, yet the subsequent unrestricted sale of this information for commercial gain potentially undermines trust in democratic processes and alters the informational nature of citizen-state relations. This article offers a first opportunity to reflect on some of the consequences of this practice