Venture Capital Financing, Moral Hazard and Learning

We consider the provision of venture capital in a dynamic agency model. The value of the venture project is initially uncertain and more information arrives by developing the project. The allocation of the funds and the learning process are subject to moral hazard. The optimal contract is a time-varying share contract which provides intertemporal risk-sharing between venture capitalist and entrepreneur. The share of the entrepreneur reflects the value of a real option. The option itself is based on the control of the funds. The dynamic agency costs may be high and lead to an ine¢cient early stopping of the project. A positive liquidation value explains the adoption of strip financing or convertible securities. Finally, relationship financing, including monitoring and the occasional replacement of the management improves the efficiency of the financial contracting.venture financing;optimal stopping;dynamic financial constraints;share contracts;security design

The Financing of Innovation: Learning and Stopping

This paper considers the financing of a research project under uncertainty about the time of completion and the probability of eventual success.The uncertainty about future success gradually diminishes with the arrival of additional funding.The entrepreneur controls the funds and can divert them.We distinguish between relationship financing, meaning that the entrepreneur's allocation of the funds is observable, and arm's length financing, where it is unobservable.We find that equilibrium funding stops altogether too early relative to the efficient stopping time in both financing modes.We characterize the optimal contracts and equilibrium funding decisions.The financial constraints will typically become tighter over time under relationship finance, and looser under arm's length financing.The trade-off is that while relationship financing may require smaller information rents, arm's length financing amounts to an implicit commitment to a finite funding horizon.The lack of such a commitment under relationship financing implies that the sustainable release of funds eventually slows down.We obtain the surprising result that arm's length contracts are preferable in a Pareto sense.innovation;finance;venture capital;learning

Venture Capital Financing, Moral Hazard and Learning

International audienceWe consider the provision of venture capital in a dynamic agency model. The value of the venture project is initially uncertain and more information arrives by developing the project. The allocation of the funds and the learning process are subject to moral hazard. The optimal contract is a time-varying share contract which provides intertemporal risk-sharing between venture capitalist and entrepreneur. The share of the entrepreneur reflects the value of a real option. The option itself is based on the control of the funds. The dynamic agency costs may be high and lead to an inefficient early stopping of the project. A positive liquidation value explains the adoption of strip financing or convertible securities. Finally, relationship financing, including monitoring and the occasional replacement of the management improves the efficiency of the financial contracting

Interpretation of the angular dependence of the de Haas-van Alphen effect in MgB_2

We present detailed results for the amplitude and field dependence of the de Haas-van Alphen (dHvA) signal arising from the electron-like $\pi$ sheet of Fermi surface in MgB_2. Our data and analysis show that the dip in dHvA amplitude when the field is close to the basal plane is caused by a beat between two very similar dHvA frequencies and not a spin-zero effect as previously assumed. Our results imply that the Stoner enhancement factors in MgB_2 are small on both the Sigma and Pi sheets.Comment: 4 pages with figures. Submitted to PR

Rigid-Band Shift of the Fermi Level in a Strongly Correlated Metal: Sr(2-y)La(y)RuO(4)

We report a systematic study of electron doping of Sr2RuO4 by non-isovalent substitution of La^(3+) for Sr^(2+). Using a combination of de Haas-van Alphen oscillations, specific heat, and resistivity measurements, we show that electron doping leads to a rigid-band shift of the Fermi level corresponding to one doped electron per La ion, with constant many-body quasiparticle mass enhancement over the band mass. The susceptibility spectrum is substantially altered and enhanced by the doping but this has surprisingly little effect on the strength of the unconventional superconducting pairing.Comment: 4 pages, 3 figure

PELACAKAN KELUARAN SISTEM LINEAR POMPA PISTON TUNGGAL DENGAN KONTROL KOMPOSISI RESERVOIR POMPA

Pompa piston tunggal adalah pompa yang terdiri dari sebuah piston yang digunakan untuk memompa air, sehingga terjadi perbedaan tekanan dalam sistem pompa tersebut dan dapat dikonverter menjadi energi. Pompa piston tunggal ini difokuskan sebagai pembangkit listrik energi ombak. Penelitian ini berjudul pelacakan keluaran sistem linear pompa piston tunggal dengan kontrol reservoir pompa. Tujuan dari penelitian ini adalah untuk merekonstruksi model sistem persamaan dari pompa piston tunggal dan membangun persamaan kontrol pompa piston tunggal terhadap reservoir-nya. Metode penelitian yang digunakan adalah metode numerik Runge-Kutta dan tracking kontrol sistem persamaan linear. Berdasarkan tujuan yang ingin dicapai sebelumnya, penelitian ini berfokus pada perancangan kontrol terhadap reservoir atas dari pompa piston tunggal, sehingga diharapkan bahwa dengan kondisi tertentu yang optimal dari reservoir atas dapat menghasilkan perbedaan tekanan yang lebih optimal pula pada sistem, yang diharapkan juga berpengaruh dengan banyak energi yang dihasilkan dari sistem. Hasil yang didapat dari pengontrolan sistem ini adalah nilai dari variabel kontrol (A_u), yaitu 52 m^2. Nilai tersebut merupakan nilai rata-rata A_u dengan interval nilai 47 m^2 sampai 75 m^2. Didapat pula energi hidrolik yang dihasilkan sistem ini selama 100 detik adalah 5.500.175 J

On the likelihoods of finding very metal-poor (and old) stars in the Milky Way’s disc, bulge, and halo

Recent observational studies have uncovered a small number of very metal-poor (VMP) stars with cold kinematics in the Galactic disc and bulge. However, their origins remain enigmatic. We select a total of 138 Milky Way (MW) analogues from the TNG50 cosmological simulation based on their z = 0 properties: discy morphology, stellar mass, and local environment. In order to make more predictive statements for the MW, we further limit the spatial volume coverage of stellar populations in galaxies to that targeted by the upcoming 4MOST high-resolution survey of the Galactic disc and bulge. We find that across all galaxies, ∼20 per cent of VMP ([Fe/H] < −2) stars belong to the disc, with some analogues reaching 30 per cent. About 50 ± 10 per cent of the VMP disc stars are, on average, older than 12.5 Gyr and ∼70 ± 10 per cent come from accreted satellites. A large fraction of the VMP stars belong to the halo (∼70) and have a median age of 12 Gyr. Our results with the TNG50 cosmological simulation confirm earlier findings with simulations of fewer individual galaxies, and suggest that the stellar disc of the MW is very likely to host significant amounts of very- and extremely-metal-poor stars that, although mostly of ex situ origin, can also form in situ, reinforcing the idea of the existence of a primordial Galactic disc

Fermi Surface Reconstruction in CeRh1−x_{1-x}Cox_{x}In5_{5}

The evolution of the Fermi surface of CeRh$_{1-x}$Co$_x$In$_5$ was studied as a function of Co concentration $x$ via measurements of the de Haas-van Alphen effect. By measuring the angular dependence of quantum oscillation frequencies, we identify a Fermi surface sheet with $f$-electron character which undergoes an abrupt change in topology as $x$ is varied. Surprisingly, this reconstruction does not occur at the quantum critical concentration $x_c$, where antiferromagnetism is suppressed to T=0. Instead we establish that this sudden change occurs well below $x_c$, at the concentration x ~ 0.4 where long range magnetic order alters its character and superconductivity appears. Across all concentrations, the cyclotron effective mass of this sheet does not diverge, suggesting that critical behavior is not exhibited equally on all parts of the Fermi surface.Comment: 4 pages, 4 figure