The Allocation of Control Rights in Financing Private Companies: Views of Estonian Private Equity and Venture Capitalists.
This paper analyzes the allocation of control rights in financing private companies by private equity and venture capitalists in Estonia. Structured interviews with main providers of venture capital and private equity were conducted to collect the information about the current practice in Estonia an...
| Publicado en: | TRAMES: A Journal of the Humanities & Social Sciences Vol. 11; no. 2; pp. 189 - 206 |
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| Autores principales: | , |
| Formato: | Artículo |
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Teaduste Akadeemia Kirjastus
2007
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510569383&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510569383 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 14060922 DT1 jtl: TRAMES: A Journal of the Humanities & Social Sciences issn: 14060922 maglogo: N pubinfo: dt: 2007 vid: 11 iid: 2 pid: 11112 pub: Teaduste Akadeemia Kirjastus artinfo: ui: 510569383 ppf: 189 ppct: 17 formats: fmt: – @attributes: type: T – @attributes: type: P size: 91KB tig: atl: The Allocation of Control Rights in Financing Private Companies: Views of Estonian Private Equity and Venture Capitalists. aug: au: Sander, Priit Kõomägi, Margus su: Private equity funds Businesspeople Venture capital companies Finance Estonia sug: subj: Estonia Private equity funds Businesspeople Venture capital companies Finance ab: This paper analyzes the allocation of control rights in financing private companies by private equity and venture capitalists in Estonia. Structured interviews with main providers of venture capital and private equity were conducted to collect the information about the current practice in Estonia and to highlight topical problems in this field. Due to the legal restrictions imposed on the preferred shares and convertible debt, most Estonian venture capitalists use common shares in financing high-growth firms and take similar risk position as entrepreneurs. Although, by using common shares, venture capitalists obtain voting rights, the minority ownership by itself does not provide sufficient protection of their interests. Venture capitalists increase their influence over the company through the active involvement in supervisory and management boards and detailed term-sheets which include different vetoes and additional clauses. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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