Minnesota Journal of Business Law & Entrepreneurship
White investing, venture capitalists and bankers encounter similar problems. Deciding which young companies are most likely to flourish can be very hard. Making sure that those companies which receive funds are using their money wisely and in the interests of investors, not those running the companies, can be even harder. In solving those problems, bankers and venture capitalists use similar tools.
Brett McDonnell, Banks and Venture Capitalists: Are the New Rules Too Tough, Too Weak, or Just Right?, 1 Minn. J. Bus. Law & Entrep. 13 (2002), available at http://scholarship.law.umn.edu/faculty_articles/120.