This working paper provides a thorough review of academic research on venture capital, addressing the selection process for investments, the intricacies of contracting, the value-added services provided post-investment, and the strategies for successful exits. It also explores the organizational structures of VC firms and the dynamics between general and limited partners, as well as the performance and returns of venture capital investments 1.

The paper is a foundational resource for understanding the venture capital industry’s impact on the economy and the functioning of VC firms within the broader financial ecosystem. This survey comprehensively reviews academic research on venture capital, covering major data sources, investment issues, firm structures, and returns. It also examines public policies and the broader economic impact of venture capital. This makes it an essential resource for understanding the complexities and effects of venture capital in both academic and practical contexts.