American Risk (Venture) Investment Limited Partnership

Author: Zhang Luyang
Publisher:
Publish Date: 2005-06-01
Features: This book revolves around the core issues of risk constraints and incentive mechanisms in the venture capital process. It presents our research on the limited partnership system in U.S. venture capital in three parts.
Part 1: Financial Economic Value Analysis of Limited Partnership in Venture Capital, written by Dr. Zhang Luyang. This section systematically discusses the risk constraints and incentive mechanisms throughout the process of establishing and operating a venture capital fund using the limited partnership system, based on its fundamental principles. The purpose is to reveal the financial economic value of the limited partnership system in venture capital.
Part 2: Limited Partnership in the U.S., written by Christopher Lane Davis (Davis). This section primarily addresses the legal and financial issues of establishing a limited partnership venture capital fund in the U.S. and the handling of preferred stock in investing in a risky project. It provides specialized legal texts for reference. The purpose is to illustrate the fundamental risk avoidance and incentive mechanisms to consider when establishing and operating a venture capital fund.
Part 3: Comparison of U.S. Limited Partnership Act and Limited Liability Company Act, also written by Davis. It is widely recognized that Delaware's Limited Partnership Act and Limited Liability Company Act are the best laws in the U.S., and a large number of venture capital firms register in Delaware. To demonstrate the superiority of the limited partnership system in venture capital, Davis provides a detailed comparison of the Limited Partnership Act and the Limited Liability Company Act. The purpose is to clarify the similarities and differences between the two.