Publications

23 Nov 1999
Research & Ideas

The Future of the Venture Capital Cycle

Over the past two decades, there has been a tremendous boom in the venture capital industry. The pool of U.S. venture capital funds has grown from less than $1 billion in 1976 (Charles River Associates 1976)... View Details

Keywords: by Paul A. Gompers & Josh Lerner; Financial Services

Forthcoming
Article

Arbitrage Capital of Global Banks

By: Alyssa Anderson, Wenxin Du and Bernd Schlusche

We show that the role of unsecured, short-term wholesale funding for global banks has changed significantly in the post-financial-crisis regulatory environment. Global banks mainly use such funding to finance liquid, near risk-free arbitrage positions—in particular,... View Details

Keywords: Governing Rules, Regulations, and Reforms; Banks and Banking; Interest Rates; Financing and Loans

January 2011 (Revised January 2015)
Case

Matrix Capital Management (A)

By: Malcolm P. Baker and David Lane

Ben Balbale, a partner at hedge fund Matrix Capital, must decide whether to exit their investment in Rovi Corporation, a company with a diverse portfolio of patents used primarily for digital interactive guides. Rovi's shares are up over 50% from the time Balbale... View Details

Keywords: Forecasting and Prediction; Asset Management; Cash Flow; Stock Shares; Financial Markets; Investment Funds; Measurement and Metrics; Mathematical Methods; Strategy; Valuation; Financial Services Industry

September 2018
Article

Asset Price Dynamics in Partially Segmented Markets

By: Robin Greenwood, Samuel G. Hanson and Gordon Y. Liao

We develop a model in which capital moves quickly within an asset class but slowly between asset classes. While most investors specialize in a single asset class, a handful of generalists can gradually reallocate capital across markets. Upon the arrival... View Details

Keywords: System Shocks; Asset Pricing

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Read Now

October 2012 (Revised March 2022)
Case

Kleiner-Perkins and Genentech: When Venture Capital Met Science

By: Felda Hardymon and Tom Nicholas

Genentech is a rare success story in the biotechnology industry. Hundreds of billions of dollars of venture capital have been invested without the expected transformational effects. Established in 1976, Genentech was to develop the new science of recombinant DNA into... View Details

Keywords: Innovation ＆ Entrepreneurship; Venture Capital; Innovation and Invention; Entrepreneurship; Information Technology; Science; Biotechnology Industry; United States

29 Nov 2010
News

Why the stock market isn't fair

2009
Case

Midland Energy Resources, Inc.: Cost of Capital (TN): Brief Case.

By: Timothy A. Luehrman and Joel L. Heilprin

Finance, Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital (WACC), Capital Structure, Risk Assessment, Corporate Finance, Cash Flow, Valuation, Beta, North America, Energy, Oil and Gas, Cost of Capital, Cost of Equity, Discount Rate, Risk Premium,... View Details

Keywords: Capital Budgeting; Cost of Capital; Energy Industry

30 Jun 2020
Book

Capitalism Is More at Risk Than Ever

of a fire bell in the night—and provide a road map and additional examples for companies to follow. Lagace: Why do you think capitalism is at risk? Bower and Paine: In Chapter 4 we lay out the pre-conditions or foundations for a thriving... View Details

Keywords: by Martha Lagace

February 2016 (Revised September 2017)
Case

Mohamed Azab and Seha Capital

By: Richard G. Hamermesh and Sarah McAra

In January 2011, Mohamed Azab, founder and CEO of health care investment firm Seha Capital, made his first health care investment in Hassab Labs, a diagnostic lab in Alexandria, Egypt. Weeks later, a revolution erupted across the country as the Arab Spring swept... View Details

Keywords: Health Care; Health; Pan-Africa; Health Care Investment; Financing; Developing World; Entrepreneurship; Health Care and Treatment; Investment; Financing and Loans; Developing Countries and Economies; Egypt; Africa

January 2007 (Revised July 2008)
Case

Capital Field: A Room with a View

By: Nicolas P. Retsinas and Joshua Wyatt

Jerzy Peters, Managing Director of Patron Capital Partners, must decide the best investment option on the development of the Odra Polish theater chain and the associated real estate. Capital Field was a company formed by U.S.-educated Polish natives involved in real... View Details

Keywords: Investment; Emerging Markets; State Ownership; Privatization; Property; Real Estate Industry; Poland

28 Feb 2007
Research & Ideas

Capital Rules: The Tensions of Global Finance

over the course of the 1980s and 1990s. Yet less than a decade after the financial crises that hit emerging markets in the 1990s, that orthodoxy is already in decline and its reign in question. As a matter of View Details

Keywords: by Rawi Abdelal

06 Nov 2000
Research & Ideas

The Determinants of Corporate Venture Capital Success

declined—gave Documentum an impressive lead over its rivals. Documentum went public in February 1996 with a market capitalization of $351 million. 4 XTV was able to exit a number of other companies... View Details

Keywords: by Paul Gompers & Josh Lerner

14 Jan 2022
News

Harvard Business School’s Former Dean Joins Kushner’s Thrive Capital

March 1995
Article

Tests of Conditional Mean-Variance Efficiency of the U.S. Stock Market

By: C. Engel, J. Frankel, Kenneth A. Froot and T. Rodrigues

Keywords: Risk Aversion; Risk; International Investing; CAPM; Capital Asset Pricing; International Finance; Risk and Uncertainty; Asset Pricing; Financial Markets; Foreign Direct Investment; Behavioral Finance; United States

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Research Summary

The Origins, Current State, and Future of Capitalism

By: Sophus A. Reinert

Starting with the dawn of market capitalism in Renaissance Italy, Professor Reinert works at the intersection of economic ideas, policies, and practices in history, particularly as seen through the lens of national strategies in international competition. He seeks to... View Details

Spring 2016
Article

Risk Neglect in Equity Markets

By: Malcolm Baker

The link between measures of risk and return within the equity market has been very weak over the past 47 years: in the United States, returns on high-risk stocks have cumulatively fallen short of the returns on low-risk stocks, during a period when the equity market... View Details

Keywords: Asset Allocation; Equity Investment; Behavioral Finance; Private Equity

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17 Oct 2019
News

Venturing Away from Venture Capital

Illustration by Peter Arkle Illustration by Peter Arkle Sandra Oh Lin (MBA 2003) has raised enough venture capital for now, thank you very much. Lin is the founder and CEO of KiwiCo, which designs and delivers science and art project kits... View Details

Keywords: Alexander Gelfand

Fast Answer

Making Markets

Use these resources to analyze broken markets and validate your proposed solutions. Understand the Current Marketplace: Gain a sense of the current landscape, major players, and future trends within an industry or sector in order to... View Details

May 2013
Teaching Plan

High Wire Act: Credit Suisse and Contingent Capital

By: Clayton Rose and David Lane

Late in 2010, Credit Suisse CEO Brady Dougan and his team considered whether or not to issue contingent capital, which Swiss regulators would require by 2019. They faced a number of substantial issues, including: Would contingent capital actually work as conceptualized... View Details

Keywords: Financial Institutions; Capital Markets; Financial Crisis; Decision Choices and Conditions; Leadership; International Finance; Financial Liquidity; Risk and Uncertainty; Competitive Strategy; Financial Services Industry; Switzerland