VENTURE CAPITAL AND SEQUENTIAL INVESTMENTS By

@inproceedings{Bergemann2008VENTURECA,
  title={VENTURE CAPITAL AND SEQUENTIAL INVESTMENTS By},
  author={Dirk Bergemann and Ulrich Hege and Liang Peng},
  year={2008}
}
We analyze sequential investment decisions in an innovative project that depend on the investor’s information about the project failure risk and its potential …nal value. We consider the feedback e¤ects between learning about the project parameters and the continuous adjustment of the investment strategy. Investors decide sequentially about the speed of investment and the optimal degree of involvement. We develop three types of predictions from our theoretical model and test these predictions… CONTINUE READING
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