THE VENTURE CAPITAL INDUSTRY has grown dramatically over the last decade. In the United States, venture capital (hereafterVC) investments grew from $ billion in 1990 to $100 billion in 2000. In Europe, funds invested in VC grew from $ billion in 1998 to more than $10 billion in success of VC is largely due to the active involvement of the venture so-called hands-on investors carefully select the investment projects they are proposed (Sahlman (1988, 1990)) and remain deeply involved in those projects after investment is realized. Their most recognized roles include the extraction of information on the quality of the projects (Gompers (1995)), the monitoring of.
