1)   In a one-page paper, answer the following: What is the function of venture capital in the United States and why is it important and/or needed? Describe the seven constants that apply across any market condition or time.

2) In a two-page paper, answer the following questions at the end of Chapter 10 on page 324.

Questions 1, 4 (venture capital related), 7, 8, 12, and 13

Note: Questions 12 and 13 can be combined into one answer.

1.

Why do you think there has been such emphasis on taking successful venture-backed companies public?

4.

Why do you think private equity firms would create good governance in their portfolio companies?

7.

Why do you think venture-backed companies would produce more and higher-quality patents than non-venture-backed companies?

8.

Why would companies backed by more-established venture firms have higher improvement in TFP?

12.

How can government funding help create a private equity industry?

13.

What are three major ways in which government funding can go awry?