创业融资外文中英文翻译.doc

本科毕业论文（设计） 外 文 翻 译 题 目 大学生创业融资渠道研究 专 业 财 务 管 理 Entrepreneurial Financing The financing of startups entails potentially extreme adverse selection costs given the absent track record of the firms seeking capital, and given the risky nature of the industries in which many of them operate. Exacerbating the problem, this scenario often involves an innovator who has extensive technical knowledge but has neither the accumulated reputation nor the bondable wealth necessary to convey this information credibly. Barry characterizes venture capital as having evolved precisely to fill this startup financing niche: At the level of small, risky ventures, access to capital markets is restricted. Not all entrepreneurs can self-finance their projects, and not all can find bankers or angels who will carry the shortfall. Venture capitalists offer them a source of funds that is specifically designed for use in risky settings. The venture capitalists themselves perform due diligence prior to investing, and information gleaned in that process can greatly reduce the adverse selection problem.. This outlook raises several questions. Why is it assumed that banks cannot (or choose not to) perform the same level of due diligence as venture capitalists (VCs)? In what sense is venture capital “designed” for risky settings? The puzzle deepens when one notes that straight debt is typically advocated as a solution to the adverse selection problem whereas in practice VCs often hold convertible preferred equity. Indeed, a defining characteristic of the venture capital market is that contracts are fairly high-powered in the sense that expected payoffs come disproportionately from the equity component or “upside”. These questions can be addressed by reflecting upon the costly due diligence to which Barry refers. By directly revealing the project’s quality, due diligence reduces information asymmetry between entrepreneurs and the VC. By con