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Article: ENGINEERING A VENTURE CAPITAL MARKET AND THE EFFECTS OF GOVERNMENT CONTROL ON PRIVATE ORDERING: LESSONS FROM THE TAIWAN EXPERIENCE
- Article from:
- The George Washington International Law Review
- Article date:
- January 1, 2005
- Author:
CopyrightCopyright George Washington University, National Law Center 2005. Provided by ProQuest LLC. (Hide copyright information)
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I. INTRODUCTION
The basic concept of venture capital is quite simple: a number of investors pool their money to create a venture capital fund. The investors entrust management of the fund to a professional manager who selects and monitors the fund's investments. The companies in which the
fund invests are called portfolio companies. Ideally, the portfolio companies eventually provide their venture capital investors with a healthy return. The venture capital fund, in turn, is then able to provide its investors with a return on their investments. The fund manager is compensated for her expert management.
In recent years, considerable attention has focused on the contributions a venture ...