Nothing Gained A major new work on venture capital has been published by Professor Gavin Reid , of the Department of Economics , University of St Andrews .
Venture capitalism involves providing external financial capital for high-risk ventures.
These are often new companies, especially those in high technology areas. Venture capital has assumed a prominent position in recent European Commission debates on employment creation and industrial competitiveness. His new book, Venture Capital Investment , published by Routledge , presents a systematic analysis of what drives investor-investee relations in venture capital markets. In this first analytical work to use a unified framework, he draws upon a modern and general approach to contracting relations, namely principal-agent analysis. The book establishes a clear theoretical framework involving risk management, information handling and the 'trading' of risk and information.