风险资本和私募股权资本利润的大小外文翻译.doc

外文翻译 原文 The size of venture capital and private equity fund portfolios Material:Journal of Corporate Finance Author: Gennaro Bernile Venture capital provides an opportunity for young, innovative firms to develop and grow.Unlike most investors,venture capitalists (VCs) are actively involved in managing their portfoliocompanies. VCs provide assistance with strategic and operational planning, managementrecruitment, marketing, and obtaining additional capital.However, the relationship between VCsand entrepreneurs is characterized by double-sided moral hazard. In most cases, the parties' effortlevels are unobservable thus,noncontractible.Unlike the optimal contracting between VCs and entrepreneurs. The optimal size of VCs'portfolios has received little attention in the theoretical and empirical venture capital literature.Investing in multiple ventures, as opposed to a single project, allows a VC to make the best use ofher funds, while reducing the risk of her investment. However, because the VC invests time andeffort in advising portfolio firms, increasing the number of firms in the portfolio dilutes thequantity quality of managerial advice to each entrepreneurial venture.Because the number of experts is limited, venture capital is not easily scalable. The higher thenumber of ventures financed and advised by a VC, the lower the amount of advice provided toeach venture. It is well established that the development of a business idea into a successful business enterprise depends on the ability of the venture capitalists (special category of entrepreneurs) to identify the potentiality of the idea to the promoter (entrepreneurs as well as intrapreneurs), timely financing, and value addition. It is also accepted that the success of venture capital financing in a region depends on the prevalence of technological advancement of that region. The last 60 years have evidenced that the greater the technological advancement in a region, the more active the venture capital