ABSTRACT
VENTURE FUNDING Accompanying a heightened interest in the general area of small business and entrepreneur ship has been increased interest from policy makers, regulators, and academics in the nature and behavior of the financial sources that fund startup ventures. At the core of this issue are questions about the type of financing growing companies need and receive at various stages of their growth. Particular attention has been focused on private equity financing and the connections between and substitutability among alternative sources of funding because they are so critical for the successful operation of the new venture. In addition to the interest in the microfoundations of smallbusiness finance, there is also growing interest in the macro economic implications of smallbusiness finance (Berger & Udell, 1998).
