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The Venture Capital Deformation

Value Destruction throughout the Investment Process

  • Darek Klonowski

Table of contents

  1. Front Matter
    Pages i-xix
  2. Introduction to Venture Capital

  3. Venture Capital Deformations Throughout the Investment Process

  4. Conclusions: The Venture Capital Industry at the Crossroads

    1. Front Matter
      Pages 275-275
    2. Darek Klonowski
      Pages 311-324
  5. Back Matter
    Pages 325-331

About this book

Introduction

In spite of the robust development of venture capital that has occurred over the last three decades, returns from venture capital have been declining. This book focuses on a simple question: why? The answer lies in the context of multiple deformations that have occurred throughout the venture capital process. The book critically assesses the ways in which interactions between different stakeholders in the venture capital ecosystem change (or "deform") venture capital, decreasing its value. Klonowski also reveals that venture capital actually has few benefits—and some outright disadvantages—for entrepreneurs, and it can create a self-perpetuating cycle of investment and loss for the entire venture capital industry. This is especially true as corporate governance and compensation structures may create significant misalignments, incongruities, and conflicts of interest between general and limited partners.

Keywords

general partner limited partner private equity venture capital investment entrepreneurial development j-curve n-arch bootstrapping

Authors and affiliations

  • Darek Klonowski
    • 1
  1. 1.Brandon UniversityBrandonCanada

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-70323-7
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2018
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-70322-0
  • Online ISBN 978-3-319-70323-7
  • Buy this book on publisher's site
Industry Sectors
Biotechnology
Finance, Business & Banking