This chapter addresses the purpose of angel and venture capital, as well as venture capital activity in the U.S. and abroad. It examines the venture capital arrangement with new start-up firms and addresses how venture capital firms are structured. It looks at venture capital’s sources of funds and its networks. It addresses the effects of venture capital on governance and management of the new venture.
Venture capital represents one of the most vital sources of funding for young biopharmaceutical firms. Venture capital is equity or equity-linked investment in privately ...