![Published Research](https://mackinstitute.wharton.upenn.edu/wp-content/uploads/2016/06/Published-Research-150x100.png)
The performance of venture capital (VC) investments load positively on shocks to aggregate return volatility. I document this novel source of risk at the asset-class, fund, and portfolio-company levels. The positive relation between VC performance and volatility is driven by the option-like structure of VC investments, especially by VCs’ contractual option to reinvest.…Read More