Josh Lerner

Jacob H. Schiff Professor of Investment Banking
Unit Head, Entrepreneurial Management

Unit: Entrepreneurial Management, Finance

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Josh Lerner is the Jacob H. Schiff Professor of Investment Banking at Harvard Business School, and head of the Entrepreneurial Management unit. He graduated from Yale College with a special divisional major that combined physics with the history of technology.  He worked for several years on issues concerning technological innovation and public policy at the Brookings Institution, for a public-private task force in Chicago, and on Capitol Hill.  He then earned a Ph.D. from Harvard's Economics Department. 

Much of his research focuses on the structure and role of venture capital and private equity organizations.  (This research is collected in three books, The Venture Capital Cycle, The Money of Invention, and Boulevard of Broken Dreams.)  He also examines policies on innovation and how they impact firm strategies.  (That research is discussed in the books Innovation and Its Discontents, The Comingled Code, and the Architecture of Innovation.)  He co-directs the National Bureau of Economic Research’s Productivity, Innovation, and Entrepreneurship Program and serves as co-editor of their publication, Innovation Policy and the Economy. He founded and runs the Private Capital Research Institute, a nonprofit devoted to encouraging access to data and research about venture capital and private equity.

In the 1993-1994 academic year, he introduced an elective course for second-year MBAs.  Over the past two decades, “Venture Capital and Private Equity” has consistently been one of the largest elective courses at Harvard Business School.  (The course materials are collected in Venture Capital and Private Equity: A Casebook, now in its fifth edition, and the textbook Venture Capital, Private Equity, and the Financing of Entrepreneurship.)  He also teaches a doctoral course on entrepreneurship and chairs the Owners-Presidents-Managers Program and executive courses on private equity. 

Among other recognitions, he is the winner of the Swedish government’s 2010 Global Entrepreneurship Research Award.  He has recently been named one of the 100 most influential people in private equity over the past decade by Private Equity International magazine and one of the ten most influential academics in the institutional investing world by Asset International's Chief Investment Officer magazine.

Featured Work

  1. The Architecture of Innovation: The Economics of Creative Organizations

    Innovation is a much-used buzzword these days, but when it comes to creating and implementing a new idea, many companies miss the mark—plans backfire, consumer preferences shift, or tried-and-true practices fail to work in a new context. So is innovation just a low-odds crapshoot?

  2. The Rate and Direction of Inventive Activity Revisited (National Bureau of Economic Research Conference Report)

    While the importance of innovation to economic development is widely understood, the conditions conducive to it remain the focus of much attention. This volume offers new theoretical and empirical contributions to fundamental questions relating to the economics of innovation and technological change while revisiting the findings of a classic book. Central to the development of new technologies are institutional environments, and among the topics discussed here are the roles played by universities and other nonprofit research institutions and the ways in which the allocation of funds between the public and private sectors affects innovation. Other essays examine the practice of open research and how the diffusion of information technology influences the economics of knowledge accumulation. Analytically sophisticated and broad in scope, this book addresses a key topic at a time when economic growth is all the more topical.
  3. Venture Capital and Private Equity: A Casebook

    The 5th edition of Lerner's Venture Capital and Private Equity: A Casebook continues to present the important historical cases of private equity while incorporating a number of new relevant and timely cases from previous best-selling issues. It includes more cases relevant to the texts four main goals: understanding the ways in which private equity firms work, applying the key ideas of corporate finance to the industry, understanding the process of valuation, and critiquing valuation approaches of the past and present- an approach which has proved very successful over the past four editions.

    This casebook contains cases and notes designed to provide an understanding of the history of the private equity industry's development and the workings of the industry today. By explaining the industry on a case-by-case basis, this text promises to address the critical question of whether gains made in recent years have been sustained and how firms will respond to the current opportunities and challenges.

  4. Venture Capital, Private Equity, and the Financing of Entrepreneurship

    Venture Capital, Private Equity, and the Financing of Entrepreneurship explores the exciting world of active investing and lays out in a clear and readily accessible way their key features, ways of doing business and likely evolution. The book follows the cycle of active investing. Raising funds, considering transactions, structuring and overseeing transactions, and exiting investments are considered in turn. The focus is not just on the U.S. market, but on the increasingly global nature of these activities.
  5. The Comingled Code: Open Source and Economic Development

    Discussions of the economic impact of open source software often generate more heat than light. Advocates passionately assert the benefits of open source while critics decry its effects. Missing from the debate is rigorous economic analysis and systematic economic evidence of the impact of open source on consumers, firms, and economic development in general. This book fills that gap. In The Comingled Code, Josh Lerner and Mark Schankerman, drawing on a new, large-scale database, show that open source and proprietary software interact in sometimes unexpected ways, and discuss the policy implications of these findings. The new data (from a range of countries in varying stages of development) documents the mixing of open source and proprietary software: firms sell proprietary software while contributing to open source, and users extensively mix and match the two. Lerner and Schankerman examine the ways in which software differs from other technologies in promoting economic development, what motivates individuals and firms to contribute to open source projects, how developers and users view the trade-offs between the two kinds of software, and how government policies can ensure that open source competes effectively with proprietary software and contributes to economic development.

  6. International Differences in Entrepreneurship (National Bureau of Economic Research Conference Report)

    Often considered one of the major forces behind economic growth and development, the entrepreneurial firm can accelerate the speed of innovation and dissemination of new technologies, thus increasing a country's competitive edge in the global market. As a result, cultivating a strong culture of entrepreneurial thinking has become a primary goal throughout the world.

    Surprisingly, there has been little systematic research or comparative analysis to show how the growth of entrepreneurship differs among countries in various stages of development. International Differences in Entrepreneurship fills this void by explaining how a country's institutional differences, cultural considerations, and personal characteristics can affect the role that entrepreneurs play in its economy. Developing an understanding of the origins of entrepreneurs as well as the choices they make and the complexity of their activities across countries and industries are of central importance to this volume. In addition, contributors consider how environmental factors of individual economies, such as market regulation, government subsidies for banks, and support for entrepreneurial culture affect the industry and the impact that entrepreneurs have on growth in developing nations.

  7. Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed--and What to Do About It

    Silicon Valley, Singapore, Tel Aviv—the global hubs of entrepreneurial activity—all bear the marks of government investment. Yet, for every public intervention that spurs entrepreneurial activity, there are many failed efforts that waste untold billions in taxpayer dollars. When has governmental sponsorship succeeded in boosting growth, and when has it fallen terribly short? Should the government be involved in such undertakings at all? Boulevard of Broken Dreams is the first extensive look at the ways governments have supported entrepreneurs and venture capitalists across decades and continents. Josh Lerner, one of the foremost experts in the field, provides valuable insights into why some public initiatives work while others are hobbled by pitfalls, and he offers suggestions for how public ventures should be implemented in the future.

    Discussing the complex history of Silicon Valley and other pioneering centers of venture capital, Lerner uncovers the extent of government influence in prompting growth. He examines the public strategies used to advance new ventures, points to the challenges of these endeavors, and reveals the common flaws undermining far too many programs--poor design, a lack of understanding for the entrepreneurial process, and implementation problems. Lerner explains why governments cannot dictate how venture markets evolve, and why they must balance their positions as catalysts with an awareness of their limited ability to stimulate the entrepreneurial sector.

    As governments worldwide seek to spur economic growth in ever more aggressive ways, Boulevard of Broken Dreams offers an important caution. The book argues for a careful approach to government support of entrepreneurial activities, so that the mistakes of earlier efforts are not repeated

  8. The Venture Capital Cycle

    In The Venture Capital Cycle, Paul Gompers and Josh Lerner correct widespread misperceptions about the nature and role of the venture capitalist and provide an accessible and comprehensive overview of the venture capital industry. Bringing together fifteen years of ground-breaking research into the form and function of venture capital firms, they examine the fund-raising, investing, and exit stages of venture capitalists. Three major themes run throughout the process: venture investors confront tremendous information and incentive problems; venture capital processes are inherently interrelated, and a complete understanding of the industry requires a full understanding of the venture cycle; and, unlike most financial markets, the venture capital industry adjusts very slowly to shifts in the demand for and the supply of investment capital.This second edition has been thoroughly revised in light of recent research findings, and includes six new chapters. The first part, on fund-raising, now includes a chapter that examines what determines the level of venture capital fund-raising and how tax policy influences the demand for venture capital. Three new chapters in the second part, on investing, examine what kind of distortions are introduced when the venture capital market goes dramatically up, a question prompted by the 1999-2000 market bubble; demonstrate that the venture capital industry does indeed spur innovation, an important determinant of economic growth; and examine whether and under what circumstances governments can be effective venture capitalists. Two new chapters in the third part, on exiting venture capital investments, discuss whether venture capital firms affiliated with investment-banks are prone to conflicts of interest with public offerings and how lockups on initial public offerings are used to limit conflicts of interest.

  9. Innovation and Its Discontents: How Our Broken Patent System is Endangering Innovation and Progress, and What to Do About It

    The United States patent system has become sand rather than lubricant in the wheels of American progress. Such is the premise behind this provocative and timely book by two of the nation's leading experts on patents and economic innovation.

    Innovation and Its Discontents tells the story of how recent changes in patenting--an institutional process that was created to nurture innovation--have wreaked havoc on innovators, businesses, and economic productivity. Jaffe and Lerner, who have spent the past two decades studying the patent system, show how legal changes initiated in the 1980s converted the system from a stimulator of innovation to a creator of litigation and uncertainty that threatens the innovation process itself.

    In one telling vignette, Jaffe and Lerner cite a patent litigation campaign brought by a a semi-conductor chip designer that claims control of an entire category of computer memory chips. The firm's claims are based on a modest 15-year old invention, whose scope and influenced were broadened by secretly manipulating an industry-wide cooperative standard-setting body.

    Such cases are largely the result of two changes in the patent climate, Jaffe and Lerner contend. First, new laws have made it easier for businesses and inventors to secure patents on products of all kinds, and second, the laws have tilted the table to favor patent holders, no matter how tenuous their claims.

    After analyzing the economic incentives created by the current policies, Jaffe and Lerner suggest a three-pronged solution for restoring the patent system: create incentives to motivate parties who have information about the novelty of a patent; provide multiple levels of patent review; and replace juries with judges and special masters to preside over certain aspects of infringement cases.

    Well-argued and engagingly written, Innovation and Its Discontents offers a fresh approach for enhancing both the nation's creativity and its economic growth.

  10. The Money of Invention: How Venture Capital Creates New Wealth

    When the economy was booming and dot-coms were flying high, venture capitalists were admired as impresarios of innovation. Then the market tanked, start-ups fizzled, and those same deal-makers were rebuked as predators out for a quick score. So which portrayal is accurate? Where is this much-hyped industry heading? And what will it mean for the future of innovation in the global economy? In this definitive book, industry experts Paul Gompers and Josh Lerner provide the first cool-headed explanation of the venture capital industry and the role it plays in our economy. They underscore that, regardless of the economic conditions, innovation is incredibly difficult to finance, take to market, and translate into value. While venture capital has evolved to address these problems - the industry has fueled innovation, economic growth, and wealth creation for decades - features of the venture industry have left it vulnerable to boom-and-bust cycles.In the near future, say the authors, the industry must transform dramatically, with important implications for industry players and the entrepreneurs and organizations they serve. Drawing from compelling research and industry "war stories," Gompers and Lerner present a series of practical frameworks for understanding the relationships among venture capital, innovation, and entrepreneurial success. They demystify how the venture capital world operates, and outline the opportunities and obstacles faced by all players in this evolving arena.They explore: the problems entrepreneurs encounter in securing financing, and how the venture capital model can help innovators to resolve them; how venture capitalists can effectively pursue promising opportunities while building a sustainable franchise; and, how corporations, nonprofits, and government institutions can harness the power - and avoid the pitfalls - of the venture capital model when applying it in their own sectors. Whether the industry is enjoying an incredible growth spurt or weathering an economic slowdown, readers will find this book an immensely practical guide to leveraging the venture capital model to turn innovation into value. Paul A. Gompers is a Professor of Business Administration and a Director of Research at Harvard Business School. Josh Lerner is a Professor of Business Administration at Harvard Business School. Both authors live in the Boston area.

Publications

Publications in Academic Journals on Venture Capital, Private Equity, and Entrepreneurial Finance

  1. An Analysis of Compensation in the U.S. Venture Capital Partnership

    Keywords: Compensation and Benefits; Venture Capital; Partners and Partnerships; United States;

    Citation:

    Gompers, Paul, and Josh Lerner. "An Analysis of Compensation in the U.S. Venture Capital Partnership." Journal of Financial Economics 51, no. 1 (January 1999): 3–44.
  2. Assessing the Impact of Venture Capital to Innovation

    We examine the influence of venture capital on patented inventions in the United States across twenty industries over three decades. We address concerns about causality in several ways, including exploiting a 1979 policy shift that spurred venture capital fundraising. We find that increases in venture capital activity in an industry are associated with significantly higher patenting rates. While the ratio of venture capital to R&D averaged less than 3% from 1983-1992, our estimates suggest that venture capital may have accounted for 8% of industrial innovations in that period.

    Keywords: Venture Capital; Innovation and Invention;

    Citation:

    Kortum, Samuel, and Josh Lerner. "Assessing the Impact of Venture Capital to Innovation." RAND Journal of Economics 31, no. 4 (winter 2000): 674–692. (Supplemental appendix.)
  3. Bridging the Gap? Government Subsidized Lending and Access to Capital

    The consequences of providing public funds to financial institutions remain controversial. We examine the Community Development Financial Institution (CDFI) Fund's impact on credit union activity, using hitherto little studied U.S. Treasury data. The CDFI Fund grants increase lending at credit unions by 3%. For every dollar awarded, 45 additional cents are loaned out to borrowers in the first year, and up to an additional $1.60 is loaned out within three years. Delinquent loan rates also increase slightly. Our panel results are supported by a broadband regression discontinuity analysis. Politics does not seem to play a role in allocating funding.

    Keywords: Financing and Loans; Credit; Government and Politics; Financial Institutions; United States;

    Citation:

    Lerner, Josh, and Kristle Romero-Cortes. "Bridging the Gap? Government Subsidized Lending and Access to Capital." Review of Corporate Finance Studies 2, no. 1 (March 2013): 98–128.
  4. Buy Local? The Geography of Successful Venture Capital Expansion

    We document geographic concentration by both venture capital firms and venture capital-financed companies in three metropolitan areas: San Francisco, Boston, and New York. We find that venture capital firms locate in regions with high success rates of venture capital-backed investments. Geography is also significantly related to outcomes. Venture capital firms based in locales that are venture capital centers outperform, regardless of the stage of the investment. This outperformance arises from outsized performance outside of the venture capital firms' office locations, including in peripheral locations. If the goal of state and local policy makers is to encourage venture capital investment, outperformance of non-local investments suggests that policy makers might want to mitigate costs associated with established venture capitalists investing in their geographies rather than encouraging the establishment of new venture capital firms.

    Keywords: Venture Capital; Expansion; Success; Capital; Geographic Location; Business Units; Corporate Accountability; Business Offices; Goals and Objectives; Mission and Purpose; Investment Funds; Corporate Governance; Boston; New York (state, US); San Francisco;

    Citation:

    Chen, Henry, Paul A. Gompers, Anna Kovner, and Josh Lerner. "Buy Local? The Geography of Successful Venture Capital Expansion." Journal of Urban Economics 67, no. 1 (January 2010).
  5. Conflict of Interest in the Issuance of Public Securities: Evidence from Venture Capital

    Keywords: Conflict of Interests; Financial Instruments; Venture Capital;

    Citation:

    Gompers, Paul, and Josh Lerner. "Conflict of Interest in the Issuance of Public Securities: Evidence from Venture Capital." Journal of Law & Economics 42, Part 1, no. 1 (April 1999): 1–28.
  6. The Consequences of Entrepreneurial Finance:: Evidence from Angel Financings

    This paper documents that ventures that are funded by two successful angel groups experience superior outcomes to rejected ventures: they have improved survival, exits, employment, patenting, web traffic, and financing. We use strong discontinuities in angel funding behavior over small changes in their collective interest levels to implement a regression discontinuity approach. We confirm the positive effects for venture operations, with qualitative support for a higher likelihood of successful exits. On the other hand, there is no difference in access to additional financing around the discontinuity. This might suggest that financing is not a central input of angel groups.

    Keywords: Business Ventures; Financing and Loans; Interests; Employment; Patents; Web; Operations; Entrepreneurship; Business Exit or Shutdown;

    Citation:

    Kerr, William R., Josh Lerner, and Antoinette Schoar. "The Consequences of Entrepreneurial Finance: Evidence from Angel Financings." Review of Financial Studies 27, no. 1 (January 2014): 20–55.
  7. Does Legal Enforcement Affect Financial Transactions?: The Contractual Channel in Private Equity

    Keywords: Law Enforcement; Finance; Contracts; Private Equity;

    Citation:

    Lerner, Josh, and Antoinette Schoar. "Does Legal Enforcement Affect Financial Transactions?: The Contractual Channel in Private Equity." Quarterly Journal of Economics (February 2005): 223–246. (Earlier version distributed as National Bureau of Economic Research Working Paper No. 10348.)
  8. Doing Well by Doing Good? Community Development Venture Capital

    This paper examines the investments and performance of community development venture capital (CDVC). We find substantial differences between CDVC and traditional venture capital (VC) investments: CDVC investments are far more likely to be in nonmetropolitan regions and in regions with little prior venture capital activity. Moreover, CDVC is likely to be in earlier-stage investments and in industries outside the venture capital mainstream that have lower probabilities of successful exit. Even after we control for this unattractive transaction mix, the probability of a CDVC investment being successfully exited is lower. One benefit of CDVCs may be their effect in bringing traditional VC investment to underserved regions: When we control for the presence of traditional VC investments, each additional CDVC investment results in an additional 0.06 new traditional VC firm in a region.

    Keywords: Social Enterprise; Venture Capital;

    Citation:

    Lerner, Josh, and Anna Kovner. "Doing Well by Doing Good? Community Development Venture Capital." Journal of Economics & Management Strategy (forthcoming).
  9. Entrepreneurial Spawning: Public Corporations and the Formation of New Ventures, 1986-1999

    Keywords: Entrepreneurship; Business Startups; Public Ownership;

    Citation:

    Gompers, Paul A., Josh Lerner, and David S. Scharfstein. "Entrepreneurial Spawning: Public Corporations and the Formation of New Ventures, 1986-1999." Journal of Finance 60, no. 2 (April 2005). (Earlier version distributed as National Bureau of Economic Research Working Paper No. 9816.)
  10. The Government as Venture Capitalist: The Long-Run Effects of the SBIR Program

    Keywords: Government and Politics; Venture Capital; Programs; Local Range; United States;

    Citation:

    Lerner, Josh. "The Government as Venture Capitalist: The Long-Run Effects of the SBIR Program." Journal of Business 72 (July 1999): 285–318.
  11. The Illiquidity Puzzle: Theory and Evidence from Private Equity

    Keywords: Financial Liquidity; Theory; Information;

    Citation:

    Lerner, Josh, and Antoinette Schoar. "The Illiquidity Puzzle: Theory and Evidence from Private Equity." Journal of Financial Economics 72, no. 1 (April 2004): 3–40.
  12. Money Chasing Deals?: The Impact of Fund Inflows on the Valuation of Private Equity Investments

    Keywords: Money; Valuation; Finance; Investment;

    Citation:

    Gompers, Paul, and Josh Lerner. "Money Chasing Deals?: The Impact of Fund Inflows on the Valuation of Private Equity Investments." Journal of Financial Economics 55, no. 2 (February 2000): 281–325.
  13. The Performance of Reverse Leveraged Buyouts

    Citation:

    Lerner, Josh, and Jerry Cao. "The Performance of Reverse Leveraged Buyouts." Journal of Financial Economics 91 (February 2009): 139–157. (Earlier version distributed as National Bureau of Economic Research Working Paper No. 12626.)
  14. Performance Persistence in Entrepreneurship and Venture Capital

    This paper presents evidence of performance persistence in entrepreneurship. We show that entrepreneurs with a track record of success are much more likely to succeed than first-time entrepreneurs and those who have previously failed. In particular, they exhibit persistence in selecting the right industry and time to start new ventures. Entrepreneurs with demonstrated market-timing skill are also more likely to outperform industry peers in their subsequent ventures. This is consistent with the view that if suppliers and customers perceive the entrepreneur to have market-timing skill, and is therefore more likely to succeed, they will be more willing to commit resources to the firm. In this way, success breeds success and strengthens performance persistence.

    Keywords: Performance; Entrepreneurship; Venture Capital; Market Timing; Competency and Skills; Customers; Resource Allocation; Success; Business Startups;

    Citation:

    Gompers, Paul A., Josh Lerner, David Scharfstein, and Anna Kovner. "Performance Persistence in Entrepreneurship and Venture Capital." Journal of Financial Economics 96, no. 1 (April 2010).
  15. Pricing and Financial Resources: An Analysis of the Disk Drive Industry, 1980-88

    Keywords: Price; Hardware; Money; Computer Industry;

    Citation:

    Lerner, J. "Pricing and Financial Resources: An Analysis of the Disk Drive Industry, 1980-88." Review of Economics and Statistics 77 (November 1995): 585–598. (Symposium on Hedonic Methods in Industrial Economics.)
  16. Private Equity and Long-Run Investment: The Case of Innovation

    A long-standing controversy is whether LBOs relieve managers from short-term pressures of dispersed shareholders, or whether LBO funds themselves are driven by short-term profit motives and sacrifice long-term growth to boost short-term performance. We investigate 495 transactions with a focus on one form of long-term activities, namely investments in innovation as measured by patenting activity. We find no evidence that LBOs decrease these activities. Relying on standard measures of patent quality, we find that patents applied for by firms in private equity transactions are more cited (a proxy for economic importance), show no significant shifts in the fundamental nature of the research, and are more concentrated in the most important and prominent areas of companies' innovative portfolios.

    Keywords: Patents; Private Equity; Leveraged Buyouts; Investment; Innovation and Invention;

    Citation:

    Lerner, Josh, Morten Sorensen, and Per Stromberg. "Private Equity and Long-Run Investment: The Case of Innovation." Journal of Finance 66, no. 2 (April 2011): 445–477.
  17. Private Equity, Jobs, and Productivity

    Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S. private equity transactions from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing outcomes to controls similar in terms of industry, size, age, and prior growth. Relative to controls, employment at target establishments declines 3 percent over two years post buyout and 6 percent over five years. The job losses are concentrated among public-to-private buyouts, and transactions involving firms in the service and retail sectors. But target firms also create more new jobs at new establishments, and they acquire and divest establishments more rapidly. When we consider these additional adjustment margins, net relative job losses at target firms are less than 1 percent of initial employment. In contrast, the sum of gross job creation and destruction at target firms exceeds that of controls by 13 percent of employment over two years. In short, private equity buyouts catalyze the creative destruction process in the labor market, with only a modest net impact on employment. The creative destruction response mainly involves a more rapid reallocation of jobs across establishments within target firms.

    Keywords: Private Equity; Leveraged Buyouts; Performance Productivity; Jobs and Positions; United States;

    Citation:

    Davis, Steven J., John Haltiwanger, Kyle Handley, Ron Jarmin, Josh Lerner, and Javier Miranda. "Private Equity, Jobs, and Productivity." American Economic Review (forthcoming). (Earlier versions distributed as National Bureau of Economic Research Working Paper No. 17399 and Harvard Business School Working Paper No. 12-033.) (Originally called "Private Equity and Employment.")
  18. Private Equity, Jobs, and Productivity—Online Appendix

    Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S. private equity transactions from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing outcomes to controls similar in terms of industry, size, age, and prior growth. Relative to controls, employment at target establishments declines 3 percent over two years post buyout and 6 percent over five years. The job losses are concentrated among public-to-private buyouts, and transactions involving firms in the service and retail sectors. But target firms also create more new jobs at new establishments, and they acquire and divest establishments more rapidly. When we consider these additional adjustment margins, net relative job losses at target firms are less than 1 percent of initial employment. In contrast, the sum of gross job creation and destruction at target firms exceeds that of controls by 13 percent of employment over two years. In short, private equity buyouts catalyze the creative destruction process in the labor market, with only a modest net impact on employment. The creative destruction response mainly involves a more rapid reallocation of jobs across establishments within target firms.

    Keywords: Job Cuts and Outsourcing; Private Equity; Performance Productivity;

    Citation:

    Davis, Steven J., John Haltiwanger, Kyle Handley, Ron Jarmin, Josh Lerner, and Javier Miranda. "Private Equity, Jobs, and Productivity—Online Appendix." American Economic Review (forthcoming).
  19. The Really Long-Run Performance of Initial Public Offerings: The Pre-Nasdaq Evidence

    Keywords: Initial Public Offering; Stocks; Markets; Performance;

    Citation:

    Gompers, Paul A., and Josh Lerner. "The Really Long-Run Performance of Initial Public Offerings: The Pre-Nasdaq Evidence." Journal of Finance 58, no. 4 (August 2003).
  20. Smart Institutions, Foolish Choices: The Limited Partner Performance Puzzle

    Keywords: Decision Choices and Conditions; Performance; Partners and Partnerships;

    Citation:

    Lerner, Josh, Antoinette Schoar, and Wan Wong. "Smart Institutions, Foolish Choices: The Limited Partner Performance Puzzle." Journal of Finance 62, no. 2 (April 2007). (Earlier version distributed as National Bureau of Economic Research Working Paper No. 11136.)
  21. Specialization and Success: Evidence from Venture Capital

    This paper examines how organizational structure affects behavior and outcomes, studying the performance of different types of venture capital organizations. We find a strong positive relationship between the degree of specialization by individual venture capitalists at a firm and its success. When the individual investment professionals are highly specialized themselves, the marginal effect of increasing overall firm specialization is much weaker. The poorer performance by generalists appears to be due to both an inefficient allocation of funding across industries and poor selection of investments within industries. Venture capital organizations with more experience tend to outperform those with less experience.

    Keywords: Experience and Expertise; Venture Capital; Organizational Structure; Outcome or Result; Performance Effectiveness; Behavior; Financial Services Industry;

    Citation:

    Gompers, Paul A., Anna Kovner, and Josh Lerner. "Specialization and Success: Evidence from Venture Capital." Journal of Economics & Management Strategy 18, no. 3 (fall 2009): 817–844.
  22. The Syndication of Venture Capital Investments

    Keywords: Venture Capital; Investment;

    Citation:

    Lerner, Josh. "The Syndication of Venture Capital Investments." Special Issue on Venture Capital. Financial Management 23 (autumn 1994): 16–27. (Reprinted in Venture Capital, edited by Michael Wright and Ken Robbie. Aldershot: International Library of Management/Dartmouth Publishing, 1997.)
  23. Unstable Equity: Combining Banking with Private Equity Investing

    Bank-affiliated private equity groups account for 30% of all private equity investments. Their market share is highest during peaks of the private equity market, when the parent banks arrange more debt financing for in-house transactions yet have the lowest exposure to debt. Using financing terms and ex-post performance, we show that overall banks do not make superior equity investments to those of standalone private equity groups. Instead, they appear to expand their private equity engagement to take advantage of the credit market booms while capturing private benefits from cross-selling of other banking services.

    Keywords: leveraged buyouts; private equity; banks and banking; banking industry; regulation; Private Equity; Leveraged Buyouts; Banks and Banking; Banking Industry;

    Citation:

    Fang, Lily H., Victoria Ivashina, and Josh Lerner. "Unstable Equity: Combining Banking with Private Equity Investing." Review of Financial Studies (forthcoming).
  24. The Use of Covenants: An Empirical Analysis of Venture Partnership Agreements

    Keywords: Partners and Partnerships; Theory; Agreements and Arrangements;

    Citation:

    Gompers, Paul A., and J. Lerner. "The Use of Covenants: An Empirical Analysis of Venture Partnership Agreements." Journal of Law & Economics 39, no. 2 (October 1996): 463–498. (Condensed version reprinted in Investment Policy 1 (September/October 1997): 122-130.)
  25. Venture Capital Distributions: Short-Run and Long-Run Reactions

    Citation:

    Gompers, Paul, and Josh Lerner. "Venture Capital Distributions: Short-Run and Long-Run Reactions." Journal of Finance 53 (December 1998): 2161–2183.
  26. Venture Capital Investment Cycles: The Impact of Public Markets

    It is well documented that the venture capital industry is highly volatile and that much of this volatility is associated with shifting valuations and activity in public equity markets. This paper examines how changes in public market signals affected venture capital investing between 1975 and 1998. We find that venture capitalists with the most industry experience increase their investments the most when public market signals become more favorable. Their reaction to an increase is greater than the reaction of venture capital organizations with relatively little industry experience and those with considerable experience but in other industries. The increase in investment rates does not affect the success of these transactions adversely to a significant extent. These findings are consistent with the view that venture capitalists rationally respond to attractive investment opportunities signaled by public market shifts.

    Keywords: Venture Capital; Investment; Experience and Expertise; Public Equity; Volatility; Financial Services Industry;

    Citation:

    Gompers, Paul, Anna Kovner, Josh Lerner, and David Scharfstein. "Venture Capital Investment Cycles: The Impact of Public Markets." Journal of Financial Economics 87, no. 1 (January 2008): 1–23. (Earlier versions distributed as National Bureau of Economic Research Working Paper No. 11385.)
  27. Venture Capitalists and the Decision to Go Public

    Keywords: Venture Capital; Decision Making; Going Public;

    Citation:

    Lerner, Josh. "Venture Capitalists and the Decision to Go Public." Journal of Financial Economics 35, no. 3 (April 1994): 293–316. (Reprinted in Vol. 1 of Small Firms and Economic Growth, pp. 650-673, edited by Zoltan Acs. Cheltenham: Edward Elgar, 1996; and in Empirical Corporate Finance, edited by Michael J. Brennan. Cheltenham: Edward Elgar, 2002.)
  28. Venture Capitalists and the Oversight of Private Firms

    Keywords: Venture Capital; Private Ownership; Business Ventures;

    Citation:

    Lerner, Josh. "Venture Capitalists and the Oversight of Private Firms." Journal of Finance 50, no. 1 (March 1995): 301–318. (Reprinted in Venture Capital, pp. 267-284, edited by Michael Wright and Ken Robbie. Aldershot: International Library of Management/Dartmouth Publishing, 1997.)
  29. What Drives Venture Capital Fundraising?

    Keywords: Venture Capital;

    Citation:

    Gompers, P., and J. Lerner. "What Drives Venture Capital Fundraising?" Brookings Papers on Economic Activity. Microeconomics (July 1998): 149–192.
  30. With a Little Help from My (Random) Friends: Success and Failure in Post-Business School Entrepreneurship

    To what extent do peers affect our occupational choices? This question has been of particular interest in the context of entrepreneurship and policies to create a favorable environment for entry. Such influences, however, are hard to identify empirically. We exploit the assignment of students into business school sections that have varying numbers of classmates with prior entrepreneurial experience. We find that the presence of entrepreneurial peers strongly predicts subsequent entrepreneurship rates of students without an entrepreneurial background but in a more complex way than the literature has previously suggested: a higher share of entrepreneurial peers leads to lower rather than higher subsequent rates of entrepreneurship. However, the decrease in entrepreneurship is entirely driven by a significant reduction in unsuccessful entrepreneurial ventures. The effect on the rate of successful post-MBA entrepreneurs, instead, is insignificantly positive. In addition, sections with few prior entrepreneurs have a considerably higher variance in their rates of unsuccessful entrepreneurs. The results are consistent with intra-section learning, where the close ties between section-mates lead to insights about the merits of business plans.

    Keywords: Behavior; Entrepreneurship; Attitudes; Relationships; Cognition and Thinking;

    Citation:

    Lerner, Josh, and Ulrike Malmendier. "With a Little Help from My (Random) Friends: Success and Failure in Post-Business School Entrepreneurship." Review of Financial Studies (forthcoming). (Earlier versions distributed as National Bureau of Economic Research Working Paper No. 16918 and Harvard Business School Working Paper No. 11-108.)

Publications in Academic Journals on Intellectual Property and Innovation

  1. An Empirical Exploration of a Technology Race

    An extensive theoretical literature examines technological competition, and in particular whether leaders maintain their standing. These models, however, have received little support. Innovation is examined in the disk drive industry, an environment particularly conducive to identifying racing behavior. Strategic variables prove significant in explaining the decision to innovate. The patterns are in accord with Reinganum's (1989) work: firms that trail the leader innovate more. Controls are added for technological opportunity, financing constraints, and firm turnover. When firms manufacture drives for internal use or there are many entrants, and strategic actions may be less important, the effects are less pronounced.

    Keywords: Technology; Learning;

    Citation:

    Lerner, J. "An Empirical Exploration of a Technology Race." RAND Journal of Economics 28, no. 2 (summer 1997): 228–247.
  2. The Empirical Impact of Intellectual Property Rights on Innovation: Puzzles and Clues

    Economists have long seen the patent system as a crucial lever through which policymakers affect the speed and nature of innovation in the economy. It is not surprising, then, that the profound changes which have roiled the global patent system over the past 20 years are attracting increasing attention from the economics profession. A critical question relates to the impact of these shifts: to what extent do they really affect the pace of innovative discovery and diffusion? Much of the theoretical economics literature, such as Richard Gilbert and Carl Shapiro (1990), has assumed an unambiguous relationship between the strength of patent protection and the rate of innovation. This assumption has been relaxed in a line of work on sequential innovation, beginning with Suzanne Scotchmer and Jerry Green (1990). This research addresses this question by examining the impact of major patent policy shifts in 60 nations over the past 150 years. I examine the changes in patent applications by residents of the nation undertaking the policy change. While I tabulate domestic filings by residents and non-residents alike, confounding factors may influence this measure. Thus, I also examine filings made by residents of the nation undertaking the policy change in a nation with a relatively constant patent policy, Great Britain.

    Keywords: Economy; Policy; Innovation and Invention; Intellectual Property; Rights; Business and Government Relations;

    Citation:

    Lerner, Josh. "The Empirical Impact of Intellectual Property Rights on Innovation: Puzzles and Clues." American Economic Review: Papers and Proceedings 99, no. 2 (May 2009). (Earlier version distributed as National Bureau of Economic Research Working Paper No. 8977.)
  3. The Importance of Patent Scope: An Empirical Analysis

    Keywords: Patents;

    Citation:

    Lerner, J. "The Importance of Patent Scope: An Empirical Analysis." RAND Journal of Economics 25, no. 2 (summer 1994): 319–333. (Earlier version distributed as Center for Science and International Affairs (Kennedy School of Government) Working Paper No. 91-04. Reprinted in The Economics of Intellectual Property, edited by Ruth Towse and Rudi Holzhauer. Vol. 145 in The International Library of Critical Writings in Economics Series. Cheltenham: Edward Elgar, forthcoming.)
  4. Inducement Prizes and Innovation

    We examine the effect of prizes on innovation using data on awards for technological development offered by the Royal Agricultural Society of England at annual competitions between 1839 and 1939. We find that the effects of prizes on competitive entry are large, and we also detect an impact of the prizes on the quality of contemporaneous patents, especially when prize categories were set by a strict rotation scheme, thereby mitigating the potentially confounding effect that they targeted only "hot" technology sectors. Prizes encouraged competition and medals were more important than monetary awards. The boost to innovation we observe cannot be explained by the redirection of existing inventive activity.

    Keywords: Motivation and Incentives; Patents; Innovation and Invention; Technology; Growth and Development; England;

    Citation:

    Brunt, Liam, Josh Lerner, and Tom Nicholas. "Inducement Prizes and Innovation." Journal of Industrial Economics 60, no. 4 (December 2012): 657–696.
  5. Innovation and Incentives: Evidence from Corporate R&D

    Beginning in the late 1980s, American corporations began increasingly linking the compensation of central research personnel to the economic objectives of the corporation. This paper examines the impact of the shifting compensation of the heads of corporate research and development. Among firms with centralized R&D organizations, a clear relationship emerges: more long-term incentives (e.g. stock options and restricted stock) are associated with more heavily cited patents. These incentives also appear to be associated with more patent filings and patents of greater originality. Short-term incentives appear to be unrelated to measures of innovation.

    Keywords: Innovation and Invention; Motivation and Incentives; Goals and Objectives; Research and Development; Patents; Employee Stock Ownership Plan;

    Citation:

    Lerner, Josh, and Julie Wulf. "Innovation and Incentives: Evidence from Corporate R&D." Review of Economics and Statistics 89, no. 4 (November 2007): 634–644.
  6. The Litigation of Financial Innovations

    This paper examines the litigation of patents relating to financial products and services. I show that these grants are being litigated at a rate 27 to 39 times greater than that of patents as a whole. The patents being litigated are disproportionately those issued to individuals and to smaller, private entities, as well as those whose features may proxy for higher quality. Larger entities are disproportionately targeted in litigation. I discuss how the findings are in large part consistent with the theoretical literature on the economics of litigation.

    Keywords: Patents; Lawsuits and Litigation; Finance;

    Citation:

    Lerner, Josh. "The Litigation of Financial Innovations." Journal of Law & Economics 53, no. 4 (November 2010).
  7. The New New Financial Thing: The Origins of Financial Innovations

    Keywords: Finance; Innovation and Invention;

    Citation:

    Lerner, Josh. "The New New Financial Thing: The Origins of Financial Innovations." Journal of Financial Economics 79, no. 2 (February 2006). (Earlier version distributed as National Bureau of Economic Research Working Paper No. 10223 and Harvard Business School Negotiations Organizations and Markets Working Paper No. 04-20.)
  8. 150 Years of Patent Office Practice

    Keywords: Patents; Business Ventures;

    Citation:

    Lerner, Josh. "150 Years of Patent Office Practice." Law and Institutions. American Law and Economics Review 7 (spring 2005): 112–143. (Earlier version distributed as Harvard Business School Working Paper No. 00-040 and National Bureau of Economic Research Working Paper No. 7478.)
  9. 150 Years of Patent Protection

    Keywords: Patents;

    Citation:

    Lerner, Josh. "150 Years of Patent Protection." American Economic Review 92, no. 2 (May 2002). (Also in American Economic Review Papers and Proceedings 92 (May 2002). Earlier version distributed as HBS Working Paper No. 00-039 and NBER Working Paper No. 7477. Supplemental material on the evolution of global patent policy.)
  10. Patenting in the Shadow of Competitors

    Keywords: Competition; Patents;

    Citation:

    Lerner, J. "Patenting in the Shadow of Competitors." Journal of Law & Economics 38 (October 1995): 563–595.
  11. Reinventing Public R&D: Patent Law and Technology Transfer from Federal Laboratories

    Keywords: Research and Development; Law; Patents; Technology; Communication;

    Citation:

    Jaffe, Adam, and Josh Lerner. "Reinventing Public R&D: Patent Law and Technology Transfer from Federal Laboratories." RAND Journal of Economics 32, no. 1 (spring 2001): 167–198.
  12. Stronger Protection or Technological Revolution: What is Behind the Recent Surge in Patenting?

    Keywords: Technology; Patents;

    Citation:

    Lerner, Josh, and Samuel Kortum. "Stronger Protection or Technological Revolution: What is Behind the Recent Surge in Patenting?" Carnegie-Rochester Conference Series on Public Policy 49 (June 1998). (Abridged version reprinted as "What is Behind the Recent Surge in Patenting?" in Research Policy 28 (January 1999): 1-22.)
  13. Tilting the Table? The Use of Preliminary Injunctions

    Keywords: Law;

    Citation:

    Lanjouw, Jean, and Josh Lerner. "Tilting the Table? The Use of Preliminary Injunctions." Journal of Law & Economics 44, no. 2 (October 2001).
  14. What Is the Impact of Software Patent Shifts? Evidence from Lotus v. Borland

    Economists have debated the extent to which strengthening patent protection spurs or detracts from technological innovation. This paper examines the reduction of software copyright protection in the Lotus v. Borland decision. If patent and copyright protections are substitutes, weakening of one form should be associated with an increased reliance on the other. We find that the firms affected by the diminution of copyright protection disproportionately accelerated their patenting in subsequent years. But little evidence can be found for any harmful effects on firms' performance and incentive to innovate: in fact, the increased reliance on patents is correlated with growth in measures such as sales and R&D expenditures.

    Keywords: Software; Patents; Technology; Information Technology Industry;

    Citation:

    Lerner, Josh, and Feng Zhu. "What Is the Impact of Software Patent Shifts? Evidence from Lotus v. Borland." International Journal of Industrial Organization 25, no. 3 (June 2007): 511–529. (Earlier version distributed as National Bureau of Economic Research Working Paper No. 11168.)
  15. Where Does State Street Lead? A First Look at Finance Patents, 1971-2000

    Keywords: Patents; Finance;

    Citation:

    Lerner, Josh. "Where Does State Street Lead? A First Look at Finance Patents, 1971-2000." Journal of Finance 57, no. 2 (April 2002). (Earlier versions distributed as HBS Working Paper No. 01-005 and NBER Working Paper No. 7918; Supplemental information on financial patents. Spreadsheet of financial patents, 1971-February 2000.)

Publications in Academic Journals on Strategic Alliances and Other Hybrid Organizational Forms

  1. A Better Route to Standards

    Citation:

    Lerner, Josh, and Jean Tirole. "A Better Route to Standards." Science (forthcoming).
  2. Certifying New Technologies

    Keywords: Technology;

    Citation:

    Lerner, Josh, Jean Tirole, and Emmanuel Farhi. "Certifying New Technologies." Journal of the European Economic Association 3, nos. 2-3 (April–May 2005): 734–744.
  3. Contractibility and Contract Design in Strategic Alliances

    Earlier version distributed as National Bureau of Economic Research Working Paper No. 11292.

    Citation:

    Lerner, Josh, and Ulrike Malmendier. "Contractibility and Contract Design in Strategic Alliances." American Economic Review 100, no. 1 (March 2010): 44.
  4. The Control of Technology Alliances: An Empirical Analysis of the Biotechnology Industry

    Keywords: Technology; Alliances; Information; Biotechnology Industry;

    Citation:

    Lerner, Josh, and Robert P. Merges. "The Control of Technology Alliances: An Empirical Analysis of the Biotechnology Industry." Journal of Industrial Economics 46 (June 1998): 125–156. (Special Symposium "Inside the Pin Factory": Empirical Studies Augmented by Manager Interviews.)
  5. The Design of Patent Pools: The Determinants of Licensing Rules

    Patent pools are an important but little-studied economic institution. In this paper, we first make a set of predictions about the licensing terms associated with patent pools. The theoretical framework predicts that (a) pools consisting of complementary patents are more likely to allow members to engage in independent licensing and (b) that the requirement that firms license patents to the pool (grantbacks) should be associated with pools that consist of complements and allow independent licensing. We then empirically examine the terms of 63 pools, and show that licensing rules are consistent with these hypotheses.

    Keywords: Governing Rules, Regulations, and Reforms; Collaborative Innovation and Invention; Patents; Rights;

    Citation:

    Lerner, Josh, Marcin Strojwas, and Jean Tirole. "The Design of Patent Pools: The Determinants of Licensing Rules." RAND Journal of Economics 38, no. 3 (fall 2007). (Earlier version distributed as National Bureau of Economic Research Working Paper No. 9680.)
  6. Do Equity Financing Cycles Matter?: Evidence from Biotechnology Alliances

    Keywords: Equity; Financing and Loans; Science; Alliances; Biotechnology Industry;

    Citation:

    Lerner, Josh, Hilary Shane, and Alexander Tsai. "Do Equity Financing Cycles Matter?: Evidence from Biotechnology Alliances." Journal of Financial Economics 67 (March 2003): 411–446. (Earlier versions distributed as HBS Working Paper No. 00-038 and NBER Working Paper No. 7464.)
  7. The Dynamics of Open-Source Contributions

    Keywords: Technology;

    Citation:

    Lerner, Josh, Parag Pathak, and Jean Tirole. "The Dynamics of Open-Source Contributions." American Economic Review 96, no. 2 (May 2006).
  8. Efficient Patent Pools

    Keywords: Patents;

    Citation:

    Lerner, Josh, and Jean Tirole. "Efficient Patent Pools." American Economic Review 94, no. 3 (June 2004): 697–711. (Earlier version distributed as National Bureau of Economic Research Working Paper No. 9175.)
  9. Exclusivity, Contingent Control Rights, and the Design of Internet Portal Alliances

    We explore the relationship between exclusivity and state-contingent control rights using a sample of over 100 Internet portal alliance contracts. We find that stronger exclusivity arrangements are associated with more frequent usage of contingent control rights. For both portals and their partners, the more exclusively bound one party is, the more likely its counterparty is to be granted contingent control rights. Additionally, we find that portals' alliance partners are more likely to receive contingent control rights when they are prohibited from doing business with other portals and that contingent control rights are less likely to appear as the industry matures. Our findings are consistent with theoretical explanations that exclusivity provisions and contingent control rights both provide incentives to invest in the face of potential holdup problems and also with the proposition that exclusive arrangements lead firms to seek contingent control rights to avoid lock-in when environmental uncertainty is high.

    Keywords: Risk and Uncertainty; Contracts; Governance Controls; Internet; Ownership;

    Citation:

    Lerner, Josh, and Dan Elfenbein. "Exclusivity, Contingent Control Rights, and the Design of Internet Portal Alliances." Journal of Law, Economics & Organization vol. 28, no. 1 (April 2012): 45–76.
  10. Fear of Rejection? Tiered Certification and Transparency

    The sub-prime crisis has shone a harsh spotlight on the practices of securities underwriters, which provided too many complex securities that proved to ultimately have little value. This uproar calls attention to the fact that the literature on intermediaries has carefully analyzed their incentives, but that we know little about the broader strategic dimensions of this market. The paper explores three related strategic dimensions of the certification market: the publicity given to applications, the coarseness of rating patterns, and the sellers' dynamic certification strategies. In the model, certifiers respond to the sellers' desire to get a chance to be highly rated and to limit the stigma from rejection. We find conditions under which sellers opt for an ambitious certification strategy, in which they apply to a demanding but non-transparent certifier and lower their ambitions when rejected. We derive the comparative statics with respect to the sellers' initial reputation, the probability of fortuitous disclosure, the sellers' self-knowledge and impatience, and the concentration of the certification industry. We also analyze the possibility that certifiers opt for a quick turnaround time at the expense of a lower accuracy. Finally, we investigate the opportunity of regulating transparency.

    Keywords: Debt Securities; Corporate Disclosure; Corporate Governance;

    Citation:

    Farhi, Emmanuel, Josh Lerner, and Jean Tirole. "Fear of Rejection? Tiered Certification and Transparency." RAND Journal of Economics 44, no. 4 (Winter 2013): 610–631.
  11. A Model of Forum Shopping, with Special Reference to Standard Setting Organizations

    Keywords: Standards; Organizations;

    Citation:

    Lerner, Josh, and Jean Tirole. "A Model of Forum Shopping, with Special Reference to Standard Setting Organizations." American Economic Review 96, no. 4 (September 2006). (Earlier versions distributed as National Bureau of Economic Research Working Paper No. 10664.)
  12. Ownership and Control Rights in Internet Portal Alliances, 1995-1999

    Keywords: Ownership; Rights; Online Technology; Alliances;

    Citation:

    Elfenbein, Daniel W., and Josh Lerner. "Ownership and Control Rights in Internet Portal Alliances, 1995-1999." RAND Journal of Economics 34, no. 2 (summer 2003).
  13. The Rules of Standard Setting Organizations: An Empirical Analysis

    Keywords: Standards; Organizations; Theory;

    Citation:

    Lerner, Josh, Benjamin Chiao, and Jean Tirole. "The Rules of Standard Setting Organizations: An Empirical Analysis." RAND Journal of Economics 38, no. 4 (winter 2007). (Earlier versions distributed as National Bureau of Economic Research Working Paper No. 11156.)
  14. The Scope of Open Source Licensing

    Keywords: Technology;

    Citation:

    Lerner, Josh, and Jean Tirole. "The Scope of Open Source Licensing." Journal of Law, Economics & Organization 21 (April 2005): 20–56. (Earlier version distributed as National Bureau of Economic Research Working Paper No. 9363.)
  15. Some Simple Economics of Open Source

    Keywords: Economics;

    Citation:

    Lerner, Josh, and Jean Tirole. "Some Simple Economics of Open Source." Journal of Industrial Economics 50, no. 2 (June 2002). (Earlier versions distributed as HBS Working Paper No. 00-068 and NBER Working Paper No. 7600.)
  16. To Join or Not to Join: Examining Patent Pool Participation and Rent Sharing Rules

    In recognition that participation in modern patent pools is voluntary, we present empirical evidence on participation rates and the factors that drive the decision to join a pool, including the profit sharing rules adopted by the pool's founders. In most participation contexts, the at-risk group is extremely difficult, if not impossible, to identify. For pools centered on technologies that result from a standard-setting process, in contrast, we are able to identify a relatively unambiguous population of patents eligible for inclusion but that have not been included in the pool. We find that vertically integrated firms, with patents and downstream operations, are more likely to join a patent pool and among those firms that do join, those with relatively symmetric patent contributions (in terms of value) to a standard appear more likely to accept numeric patent share rules for dividing royalty earnings.

    Keywords: Patents; Alliances; Vertical Integration; Standards;

    Citation:

    Lerner, Josh, and Anne Layne-Farrar. "To Join or Not to Join: Examining Patent Pool Participation and Rent Sharing Rules." International Journal of Industrial Organization 29, no. 2 (March 2011): 294–303.

Working Papers

  1. The Disintermediation of Financial Markets: Direct Investing in Private Equity

    One of the important issues in corporate finance is the rationale for and role of financial intermediaries. In the private equity setting, institutional investors are increasingly eschewing intermediaries in favor of direct investments. To understand the trade-offs in this setting, we compile a proprietary dataset of direct investments from seven large institutional investors. We find that solo investments by institutions outperform co-investments and a wide range of benchmarks for traditional private equity partnership investments. The outperformance is driven by deals where informational problems are not too severe, such as more proximate transactions to the investor and later-stage deals, and by an ability to avoid the deleterious effects on returns often seen in periods with large inflows into the private equity market. The poor performance of co-investments, on the other hand, appears to result from fund managers' selective offering of large deals to institutions for co-investing.

    Keywords: financial intermediation; private equity; direct investment; co-investment; Private Equity; Financial Markets; Investment;

    Citation:

    Fang, Lily, Victoria Ivashina, and Josh Lerner. "The Disintermediation of Financial Markets: Direct Investing in Private Equity." NBER Working Paper Series, No. 19299, August 2013.
  2. Fear of Rejection? Tiered Certification and Transparency

    The sub-prime crisis has shown a harsh spotlight on the practices of securities underwriters, which provided too many complex securities that proved to ultimately have little value. This uproar calls attention to the fact that the literature on intermediaries has carefully analyzed their incentives, but that we know little about the broader strategic dimensions of this market. The paper explores three related strategic dimensions of the certification market: the publicity given to applications, the coarseness of rating patterns and the sellers' dynamic certification strategies.

    In the model, certifiers respond to the sellers' desire to get a chance to be highly rated and to limit the stigma from rejection. We find conditions under which sellers opt for an ambitious certification strategy, in which they apply to a demanding, but non-transparent certifier and lower their ambitions when rejected. We derive the comparative statics with respect to the sellers' initial reputation, the probability of fortuitous disclosure, the sellers' self-knowledge and impatience, and the concentration of the certification industry. We also analyze the possibility that certifiers opt for a quick turnaround time at the expense of a lower accuracy. Finally, we investigate the opportunity of regulating transparency.

    Keywords: Financial Crisis; Corporate Disclosure; Corporate Governance; Governance Compliance; Governing Rules, Regulations, and Reforms; Reputation;

    Citation:

    Farhi, Emmanuel, Josh Lerner, and Jean Tirole. "Fear of Rejection? Tiered Certification and Transparency." Harvard Business School Working Paper, No. 09–062, October 2008.
  3. Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe

    Keywords: Corporate Entrepreneurship; Capital; Europe;

    Citation:

    Desai, Mihir, Paul Gompers, and Josh Lerner. "Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe." NBER Working Paper Series, June 2005.
  4. Lost in the Clouds: The Impact of Copyright Scope on Investment in Cloud Computing Ventures

    Our analysis seeks to understand the impact of changes in copyright scope on investment in new firms. We begin by analyzing the investment effects of the Cartoon Network, et al. v. Cablevision decision in the U.S. and court rulings in France and Germany on venture capital (VC) investment in U.S. cloud computing firms relative to the EU. Then, we separately analyze the effects of the French and German court rulings on VC investment on cloud computing firms in these countries. Our findings suggest that decisions around the scope of copyrights can have economically and statistically significant impacts on investment and innovation.

    Keywords: Technological Innovation; Venture Capital; Online Technology; Investment; Business Startups; Copyright; France; Germany; United States; European Union;

    Citation:

    Lerner, Josh, Chris Borek, Laurits R. Christensen, and Greg Rafert. "Lost in the Clouds: The Impact of Copyright Scope on Investment in Cloud Computing Ventures." 2012.
  5. Private Equity and Industry Performance

    The growth of the private equity industry has spurred concerns about its potential impact on the economy more generally. This analysis looks across nations and industries to assess the impact of private equity on industry performance. Industries where PE funds have invested in the past five years have grown more quickly in terms of productivity and employment. There are few significant differences between industries with limited and high private equity activity. It is hard to find support for claims that economic activity in industries with private equity backing is more exposed to aggregate shocks. The results using lagged private equity investments suggest that the results are not driven by reverse causality. These patterns are not driven solely by common law nations such as the United Kingdom and United States, but also hold in Continental Europe.

    Keywords: Private Equity; Investment; Common Law; Industry Growth; Performance Productivity; Europe; United Kingdom; United States;

    Citation:

    Bernstein, Shai, Josh Lerner, Morten Sorensen, and Per Stromberg. "Private Equity and Industry Performance." Harvard Business School Working Paper, No. 10-045, December 2009. (NBER Working Paper Series, No. 14861, April 2009.)

Works-in-Progress

  1. The Use and Abuse of Patent Data

    Citation:

    Lerner, Josh, and Amit Seru. "The Use and Abuse of Patent Data." Working Paper, 2014.
  2. The Standards-Patent Pool Interface

    Citation:

    Lerner, Josh, and Jean Tirole. "The Standards-Patent Pool Interface." 2013.
  3. The Globalization of Angel Investing

    Citation:

    Lerner, Josh, Antoinette Schoar, and Karen Wilson. "The Globalization of Angel Investing." 2012.
  4. The Secondary Market in Private Equity

    Citation:

    Lerner, Josh, and Morten Sorensen. "The Secondary Market in Private Equity." 2012.

Books

  1. The Architecture of Innovation: The Economics of Creative Organizations

    Innovation is a much-used buzzword these days, but when it comes to creating and implementing a new idea, many companies miss the mark—plans backfire, consumer preferences shift, or tried-and-true practices fail to work in a new context. So is innovation just a low-odds crapshoot? In The Architecture of Innovation, Harvard Business School professor Josh Lerner—one of the foremost experts on how innovation works—says innovation can be understood and managed. The key to success? Incentives. Fortunately, new research has shed light on the role incentives can play in promoting new ideas, but these findings have been absent from innovation literature—until now. By using the principles of organizational economics, Lerner explains how companies can set the right incentives and time horizons for investments and create a robust innovation infrastructure in the process.

    Keywords: Motivation and Incentives; Innovation Strategy; Innovation and Management; Organizational Structure; Microeconomics;

    Citation:

    Lerner, Josh. The Architecture of Innovation: The Economics of Creative Organizations. Harvard Business Review Press, 2012.
  2. Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed and What to Do About It

    In response to the financial crisis, governments are being far more aggressive in intervening to promote economic activity, a trend that shows little tendency of alleviating. This book looks at the experiences of governments in encouraging entrepreneurs and venture capitalists across many decades and continents. Certainly, the dollars spent each year on these programs—while significant on an absolute basis—pale when compared to defense and healthcare expenditures, not to mention the costs incurred recently rescuing failing banks and automakers, among others. But the picture changes when we consider the long-run consequences of policies that facilitate or hinder the development of a venture sector: that is, the impact on national prosperity that a vital entrepreneurial climate can have. In the long run, the significance of these policies looms much larger. Much of the discussion in the book has focused on specific policies and analyses. From the discussion, five consistent themes emerge:

    • Governments around the world today are seeking to promote entrepreneurial and venture capital activity, employing a variety of "stage setting" and direct strategies.

    • These steps are sensible, given the historical record and theoretical arguments regarding the importance of such interventions in the development of entrepreneurial regions and industries.

    • But these efforts are challenging. Governments cannot dictate how a venture market will evolve, and "top-down" efforts are likely to be unsuccessful.

    • The same common flaws doom far too many programs. These reflect both poor design—reflecting a lack of understanding of the entrepreneurial process—and problematic implementation.

    • Government must play a careful balancing act, combining an understanding of the necessity of playing a catalytic role with an awareness of the limits of its ability to stimulate the entrepreneurial sector.

    If policy makers can apply these key lessons, many, if not most, of the sagas of waste and disappointment that we have highlighted could be avoided. Entrepreneurs could find a more hospitable climate, and we would all benefit.

    Keywords: Economic Growth; Financial Crisis; Entrepreneurship; Venture Capital; Policy; Business and Government Relations;

    Citation:

    Lerner, Josh. Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed and What to Do About It. Princeton University Press, 2009. (

    ​Winner of Axiom Business Book Award. Gold Medal in Entrepreneurship presented by Jenkins Group Inc. Winner of PROSE Award for Excellence in Business, Finance & Management "For Professional and Scholarly Excellence" presented by Association of American Publishers

    .)
  3. The Comingled Code: Open Source and Economic Development

    Discussions of the economic impact of open source software often generate more heat than light. Advocates passionately assert the benefits of open source, while critics decry its effects. Missing from the debate is rigorous economic analysis and systematic microeconomic evidence of the impact of open source on consumers, firms, and economic growth in general. This book fills that gap. In The Comingled Code, Josh Lerner and Mark Schankerman, drawing on a new, large-scale database, show that open source and proprietary software interact in sometimes unexpected ways and discuss the policy implications of these findings. The new data (from a range of countries in varying stages of development) documents the mixing of open source and proprietary software: firms sell proprietary software while contributing to open source, and users extensively mix and match the two. Lerner and Schankerman examine the ways in which software differs from other technologies in promoting economic development, what motivates individuals and firms to contribute to open source projects, how developers and users view the tradeoffs between the two kinds of software, and how government policies can ensure that open source competes effectively with proprietary software and contributes to economic growth.

    Keywords: Development Economics; Economic Growth; Policy; Government and Politics; Open Source Distribution; Software;

    Citation:

    Lerner, Josh, and Mark Schankerman. The Comingled Code: Open Source and Economic Development. MIT Press, 2010.
  4. Innovation and Its Discontents: How Our Broken Patent System Is Endangering Innovation and Progress, and What To Do About It

    Keywords: Innovation and Invention; Patents; System;

    Citation:

    Jaffe, Adam, and Josh Lerner. Innovation and Its Discontents: How Our Broken Patent System Is Endangering Innovation and Progress, and What To Do About It. Princeton, NJ: Princeton University Press, 2004.
  5. International Differences in Entrepreneurship

    Often considered one of the major forces behind economic growth and development, the entrepreneurial firm can accelerate the speed of innovation and dissemination of new technologies, thus increasing a country's competitive edge in the global market. As a result, cultivating a strong culture of entrepreneurial thinking has become a primary goal throughout the world. Surprisingly, there has been little systematic research or comparative analysis to show how the growth of entrepreneurship differs among countries in various stages of development. International Differences in Entrepreneurship fills this void by explaining how a country's institutional differences, cultural considerations, and personal characteristics can affect the role that entrepreneurs play in its economy. Developing an understanding of the origins of entrepreneurs as well as the choices they make and the complexity of their activities across countries and industries are of central importance to this volume. In addition, contributors consider how environmental factors of individual economies, such as market regulation, government subsidies for banks, and support for entrepreneurial culture affect the industry and the impact that entrepreneurs have on growth in developing nations.

    Keywords: Developing Countries and Economies; Economic Growth; Entrepreneurship; Globalized Economies and Regions; Governing Rules, Regulations, and Reforms; Supply and Industry; Business and Government Relations;

    Citation:

    Lerner, Josh, and Antoinette Schoar, eds. International Differences in Entrepreneurship. National Bureau of Economic Research Conference Report. Chicago: University of Chicago Press, 2010.
  6. The Money of Invention: How Venture Capital Creates New Wealth

    Keywords: Money; Innovation and Invention; Venture Capital; Wealth;

    Citation:

    Lerner, Josh, and Paul Gompers. The Money of Invention: How Venture Capital Creates New Wealth. Boston: Harvard Business School Press, 2001.
  7. The Rate and Direction of Inventive Activity Revisited

    While the importance of innovation to economic development is widely understood, the conditions conducive to it remain the focus of much attention. This volume offers new theoretical and empirical contributions to fundamental questions relating to the economics of innovation and technological change while revisiting the findings of a classic book. Central to the development of new technologies are institutional environments, and among the topics discussed here are the roles played by universities and other nonprofit research institutions and the ways in which the allocation of funds between the public and private sectors affects innovation. Other essays examine the practice of open research and how the diffusion of information technology influences the economics of knowledge accumulation. Analytically sophisticated and broad in scope, this book addresses a key topic at a time when economic growth is all the more topical.

    Keywords: Technological Innovation; Opportunities; Nonprofit Organizations; Resource Allocation; Economic Growth; Research and Development;

    Citation:

    Lerner, Josh and Scott Stern, eds. The Rate and Direction of Inventive Activity Revisited. University of Chicago Press, 2012.
  8. Venture Capital & Private Equity: A Casebook (5th Edition)

    Venture Capital & Private Equity: A Casebook, 5th edition provides an understanding of the ways in which private equity groups work. The casebook builds an understanding of the key distinctions in the industry and reviews and applies key ideas of corporate finance. The 5th edition continues to explore a wide variety of valuation approaches, from techniques widely used in practice to methods less frequently seen in practice today but likely to be increasingly important in the future years.

    Keywords: Venture Capital; Private Equity; Books;

    Citation:

    Lerner, Josh, Felda Hardymon, and Ann Leamon. Venture Capital & Private Equity: A Casebook (5th Edition). New York: John Wiley & Sons, 2012. (New York: John Wiley & Sons, 2001 (second edition) (with Felda Hardymon). Beijing: Economic Science Press, 2002 (Chinese translation of the second edition). Tokyo: Toyo Keizai Shinposha, 2003 (Japanese translation of the second edition). New York: John Wiley and Sons, 2004 (third edition) (with Felda Hardymon and Ann Leamon). New York: John Wiley & Sons, 2008 (fourth edition) (with Felda Hardymon and Ann Leamon). Beijing: CITIC Press, 2013 (Chinese translation of the fifth edition).)
  9. Venture Capital and Private Equity: An Instructor's Manual

    Keywords: Venture Capital; Private Equity; Information;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. Venture Capital and Private Equity: An Instructor's Manual. 2nd ed. NY: John Wiley & Sons, 2001.
  10. The Venture Capital Cycle

    Keywords: Venture Capital;

    Citation:

    Gompers, P., and J. Lerner. The Venture Capital Cycle. Cambridge, MA: MIT Press, 1999. (Beijing: Economic Science Press, 2001 (Chinese edition). Tokyo: Springer-Verlag Tokyo, 2001 (Japanese edition). Seoul: Kukil Securities and Economics Research Institute, 2001 (Korean edition))
  11. Venture Capital, Private Equity, and the Financing of Entrepreneurship

    Venture Capital, Private Equity, and the Financing of Entrepreneurship stems from a realization that private equity overall—defined in this volume as venture capital and buyouts but excluding hedge funds—has become a vastly more sizable and influential part of the global economic landscape over the past two decades. The text explores the world of active investing and showcases ways of doing business in a clear and concise manner. With more than 60 years of combined experience as practitioners in and/or academic investigators of private equity, Lerner, Leamon, and Hardymon explain how the fascinating world of private equity works, from start to finish, how it creates value, and where it may destroy value.

    Keywords: Venture Capital; Private Equity; Financing and Loans; Entrepreneurship;

    Citation:

    Lerner, Josh, Ann Leamon, and Felda Hardymon. Venture Capital, Private Equity, and the Financing of Entrepreneurship. New York: John Wiley & Sons, 2012.

Publications in Edited Volumes or Other Journals

  1. Corporate Venturing

    For decades, large companies have been wary of corporate venturing. But as R&D organizations face pressure to rein in costs and produce results, companies are investing in promising start-ups to gain knowledge and agility. The logic of corporate venturing is compelling: A well-run fund can help a firm respond quickly to changes in markets and gain a better view of threats. In some cases, it can stimulate demand for a company's own products. And its investments may earn attractive returns. During their first three years as public companies, firms backed by corporate venture funds show better stock price performance, on average, than companies backed by traditional VCs. Managing corporate venture funds is not easy. Some companies have seen their venture initiatives fail, and even firms with successful funds have struggled to make use of the knowledge gained from start-up investments. Six steps can help companies avoid the pitfalls. Align goals. Corporate venture funds are more successful if the business of the corporate parent and of the portfolio firm overlap. Streamline approvals. A complicated decision process can burden the fund with too many goals and lead to ineffective investing patterns. Provide powerful incentives. Companies that don't offer adequate compensation to their venture capitalists will face a steady stream of defections. Tolerate failure. A zero failure rate may indicate that the fund is playing it too safe. Stick to your commitments. If a company is seen as a fickle investor, professionals will be wary of joining its venture unit, entrepreneurs will be reluctant to accept its funds, and independent VCs will be hesitant to join in. Harvest valuable information. Companies need to invest as much in learning from their start-ups as they do in making and overseeing deals.

    Keywords: Venture Capital; Knowledge Acquisition; Corporate Strategy; Research and Development; Business Startups; Innovation and Invention;

    Citation:

    Lerner, Josh. "Corporate Venturing." Harvard Business Review 91, no. 10 (October 2013): 86–94.
  2. The Determinants of Corporate Venture Capital Success: Organizational Structure, Incentives, and Complementarities

    Keywords: Venture Capital; Success; Organizational Structure; Motivation and Incentives;

    Citation:

    Gompers, Paul, and Josh Lerner. "The Determinants of Corporate Venture Capital Success: Organizational Structure, Incentives, and Complementarities." Chap. 1 in Concentrated Corporate Ownership, edited by Randall Morck, 17–50. National Bureau of Economic Research Conference Report. University of Chicago Press, 2000.
  3. Digitization, Innovation, and Copyright: What Is the Agenda?

    This essay discusses the need for research on the consequences of digitization, as well as the impact of alternative policies governing the creation and use of digital information. This agenda focuses on the development of research to investigate the economics of digitization, to analyze the governance of intellectual property in this sector, particularly through copyright, and to pioneer approaches to analyzing measurement of digitization. This agenda overlaps with many related open questions in organizational and strategy research.

    Keywords: Technology; Research; Copyright; Information Management; Innovation and Invention;

    Citation:

    Lerner, Josh, Shane Greenstein, and Scott Stern. "Digitization, Innovation, and Copyright: What Is the Agenda?" Strategic Organization 11, no. 1 (February 2013): 110–121.
  4. Innovation and the Structure of High-Technology Industries

    Keywords: Innovation and Invention; Technology; Business Ventures;

    Citation:

    Lerner, Josh. "Innovation and the Structure of High-Technology Industries." Research on Technological Innovation, Management and Policy 5 (1993): 89–107.
  5. Institutions and Venture Capital

    We survey the literature on venture capital and institutions and present a case study comparing the development of the venture capital market in the United States and Sweden. Our literature survey underscores that the legal environment, financial market development, the tax system, labor market regulations, and public spending on research and development correlate with venture capital activities across countries. Our case study suggests these institutional differences led to the later development of an active venture capital market in Sweden compared with the United States. In particular, a later development of financial markets and a heavier tax burden for entrepreneurs have played a key role.

    Keywords: Venture Capital; Organizations; Taxation; Entrepreneurship; Financial Markets; United States; Sweden;

    Citation:

    Lerner, Josh, and Joacim Tag. "Institutions and Venture Capital." Industrial and Corporate Change 22, no. 1 (February 2013): 153–182.
  6. International Patenting and the European Patent Office: A Quantitative Assessment

    Citation:

    Lerner, Josh, Jonathan Eaton, and Samuel Kortum. "International Patenting and the European Patent Office: A Quantitative Assessment." Organisation for Economic Co-operation and Development (OECD), Paris, 2004.
  7. The Investment Strategies of Sovereign Wealth Funds

    This paper examines the direct private equity investment strategies across sovereign wealth funds (SWFs) and their relationship to the funds' organizational structures. SWFs seem to engage in a form of trend chasing, since they are more likely to invest at home when domestic equity prices are higher and invest abroad when foreign prices are higher. Funds see the industry P/E ratios of their home investments drop in the year after the investment, while they have a positive change in the year after their investments abroad. SWFs where politicians are involved have a much greater likelihood of investing at home than those where external managers are involved. At the same time, SWFs with external managers tend to invest in lower P/E industries, which see an increase in the P/E ratios in the year after the investment. By way of contrast, funds with politicians involved invest in higher P/E industries, which have a negative valuation change in the year after the investment.

    Keywords: Sovereign Finance; Strategy; Investment Funds;

    Citation:

    Bernstein, Shai, Josh Lerner, and Antoinette Schoar. "The Investment Strategies of Sovereign Wealth Funds." Journal of Economic Perspectives 27, no. 2 (Spring 2013): 219–238.
  8. It Ain't Broke: The Past, Present, and Future of Venture Capital

    Keywords: Venture Capital;

    Citation:

    Kaplan, Steven N., and Josh Lerner. "It Ain't Broke: The Past, Present, and Future of Venture Capital." Journal of Applied Corporate Finance 22 (spring 2010): 1–12.
  9. Patent Policy Innovations: A Clinical Examination

    Keywords: Patents; Policy; Innovation and Invention;

    Citation:

    Lerner, Josh. "Patent Policy Innovations: A Clinical Examination." Vanderbilt Law Review 53 (November 2000): 1841–1856.
  10. Patent Scope and Emerging Industries: Biotechnology, Software, and Beyond

    Keywords: Patents; Software; Genetics; Information Technology Industry; Biotechnology Industry;

    Citation:

    Lerner, Josh, and Robert P. Merges. "Patent Scope and Emerging Industries: Biotechnology, Software, and Beyond." In Competing in the Age of Digital Convergence, edited by D. B. Yoffie. Boston: Harvard Business School Press, 1997.
  11. Reviving Entrepreneurship

    New enterprises don't exist in a vacuum: They rise or fall depending on myriad contextual factors, all of them interrelated, and all of them affected by government policy. U.S. lawmakers must carefully consider the effects of interventions in at least 12 areas, ranging from capital markets to tax treatment to intellectual property to health care. Their decisions could shore up-or further weaken-what has long been America's greatest economic asset.

    Keywords: Entrepreneurship; Government and Politics; Policy; Economy; Public Administration Industry; United States;

    Citation:

    Lerner, Josh, and William Sahlman. "Reviving Entrepreneurship." Harvard Business Review 90, no. 3 (March 2012).
  12. Risk and Reward in Private Equity Investments: The Challenge of Performance Assessment

    Keywords: Risk and Uncertainty; Motivation and Incentives; For-Profit Firms; Equity; Investment; Problems and Challenges; Performance;

    Citation:

    Gompers, Paul A., and J. Lerner. "Risk and Reward in Private Equity Investments: The Challenge of Performance Assessment." Journal of Private Equity 1 (winter 1997): 5–12.
  13. Secrets of the Academy: The Drivers of University Endowment Success

    Citation:

    Lerner, Josh, Antoinette Schoar, and Jialan Wang. "Secrets of the Academy: The Drivers of University Endowment Success." Journal of Economic Perspectives (summer 2008): 207–222.

Review Articles and Chapters

  1. The Boulevard of Broken Dreams

    Citation:

    Lerner, Josh. "The Boulevard of Broken Dreams." In The Industrial Policy Revolution: The Role of Government Beyond Ideology, edited by Joseph E. Stiglitz. New York: Palgrave Macmillan, 2013.
  2. Short-Term America Revisited? Boom and Bust in the Venture Capital Industry and the Impact on Innovation

    This chapter seeks to understand the implications of the recent decline in venture activity for innovation. It argues that the situation may not be as grim as it initially appears. While there are many reasons for believing that on average venture capital has a powerful effect on innovation, the effect is far from uniform. During boom periods, the prevalence of over funding of particular sectors can lead to a sharp decline in the effectiveness of venture funds. While prolonged downturns may eventually lead to good companies going unfounded, many of the dire predictions today seem overstated.

    Keywords: Venture Capital; Innovation and Invention; Business Cycles; Financial Services Industry; United States;

    Citation:

    Lerner, Josh, and Paul A. Gompers. "Short-Term America Revisited? Boom and Bust in the Venture Capital Industry and the Impact on Innovation." In Innovation Policy and the Economy, Volume 3, edited by Adam B. Jaffe, Josh Lerner, and Scott Stern, 1–28. MIT Press, 2003.
  3. Academic Science and Entrepreneurship: Dual Engines of Growth?

    Citation:

    Lerner, Josh, Adam Jaffe, Scott Stern, and Marie Thursby. "Academic Science and Entrepreneurship: Dual Engines of Growth?" Journal of Economic Behavior & Organization 63, no. 4 (August 2007): 573–576.
  4. Angel Financing and Public Policy: An Overview

    Keywords: Financing and Loans; Policy;

    Citation:

    Lerner, Josh. "Angel Financing and Public Policy: An Overview." Special Issue on The Economics of Small Business Finance. Journal of Banking & Finance 22, nos. 6-8 (August 1998): 773–783.
  5. The Economics of Technology Sharing: Open Source and Beyond

    Keywords: Economics; Technology;

    Citation:

    Lerner, Josh, and Jean Tirole. "The Economics of Technology Sharing: Open Source and Beyond." Journal of Economic Perspectives 19 (spring 2005): 99–120. (Earlier version distributed as NBER Working Paper Series No. w10956.)
  6. The Enforcement of Intellectual Property Rights: A Survey of the Empirical Literature

    Keywords: Intellectual Property; Rights;

    Citation:

    Lerner, Josh, and Jenny Lanjouw. "The Enforcement of Intellectual Property Rights: A Survey of the Empirical Literature." Special Issue on The Economics and Econometrics of Innovation. Annales d'économie et de statistique 49-50 (January–June, 1998): 223–246.
  7. Equity Financing

    Citation:

    Lerner, Josh, and Paul A. Gompers. "Equity Financing." In Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction, edited by Zoltan Acs and David Audretsch, 267–298. Boston, MA: Kluwer Academic Publishers, 2003.
  8. The Financing of R&D and Innovation

    Citation:

    Lerner, Josh, and Bronwyn H Hall. "The Financing of R&D and Innovation." In Handbook of the Economics of Innovation. Vol. 1, edited by Bronwyn H Hall and Nathan Rosenberg. Elsevier, 2010.
  9. The Governance of New Firms: A Functional Perspective

    Keywords: Corporate Governance; Business Startups;

    Citation:

    Lerner, Josh. "The Governance of New Firms: A Functional Perspective." In Financing Innovation in the United States, 1870 to Present, edited by Naomi R. Lamoreaux and Kenneth L. Sokoloff. Cambridge: MIT Press, 2007.
  10. Innovation and Its Discontents

    Keywords: Innovation and Invention;

    Citation:

    Lerner, Josh, and Adam B. Jaffe. "Innovation and Its Discontents." Capitalism and Society 1, no. 3 (December 2006).
  11. Introduction: NBER Conference on Strategic Alliances

    Citation:

    Lerner, Josh, and Raghuram G. Rajan. "Introduction: NBER Conference on Strategic Alliances." Journal of Financial Economics 80, no. 1 (April 2006): 1–3.
  12. Introduction: Symposium on the Patent System and Innovation

    Citation:

    Lerner, Josh, Adam Jaffe, and Jean Lanjouw. "Introduction: Symposium on the Patent System and Innovation." RAND Journal of Economics 32, no. 1 (spring 2001): 75–75.
  13. The Open Source Movement: Key Research Questions

    The paper analyzes the incentives of individual programmers and of commercial companies to participate in open source projects. While these incentives are in our opinion well accounted for by the economic paradigm, much empirical and theoretical work is still needed to answer the many interesting questions suggested by the open source movement.

    Keywords: Motivation and Incentives; Open Source Distribution;

    Citation:

    Lerner, Josh, and Jean Tirole. "The Open Source Movement: Key Research Questions." Special Issue on Papers and Proceedings of the 15th Congress of the European Economic Association European Economic Review 45, nos. 4-6 (May 2001): 819–826.
  14. Patent Policy Reform and Its Implications

    Citation:

    Lerner, Josh. "Patent Policy Reform and Its Implications." NBER Reporter (Winter 2002): 17–19.
  15. The Patent System and Innovation

    Keywords: Patents; System; Innovation and Invention;

    Citation:

    Jaffe, Adam, and Josh Lerner. "The Patent System and Innovation." RAND Journal of Economics 32, no. 1 (spring 2001): 167–199.
  16. Public Policy Towards Patent Pools

    Keywords: Policy; Patents;

    Citation:

    Lerner, Josh, and Jean Tirole. "Public Policy Towards Patent Pools." Innovation Policy and the Economy 8 (2008).
  17. 'Public Venture Capital': Rationales and Evaluation

    Keywords: Venture Capital; Public Sector; Sovereign Finance;

    Citation:

    Lerner, Josh. "'Public Venture Capital': Rationales and Evaluation." In The SBIR Program: Challenges and Opportunities, A Report on a Workshop, edited by Charles W. Wessner, 115–128. Washington, D.C.: National Academy Press, 1999.
  18. Small Businesses, Innovation, and Public Policy

    Keywords: Innovation and Invention; Innovation and Management; Policy; Government and Politics; Business and Government Relations;

    Citation:

    Lerner, Josh. "Small Businesses, Innovation, and Public Policy." In Are Small Firms Important? edited by Zoltan Acs, 159–168. Kluwer Academic Publishers, 1999.
  19. Small Businesses, Innovation, and Public Policy in the Information Technology Industry

    Keywords: Innovation and Invention; Policy; Government and Politics; Business and Government Relations; Information Technology; Information Technology Industry;

    Citation:

    Lerner, Josh. "Small Businesses, Innovation, and Public Policy in the Information Technology Industry." In Understanding the Digital Economy: Data, Tools, and Research, edited by Erik Brynjolfsson and Brian Kahin, 201–214. Cambridge: MIT Press, 2000.
  20. Strategic Alliances and Technology Licensing in Biotechnology

    Keywords: Alliances; Corporate Strategy; Intellectual Property; Biotechnology Industry;

    Citation:

    Lerner, Josh. "Strategic Alliances and Technology Licensing in Biotechnology." In Encyclopedia of Ethical, Legal and Policy Issues in Biotechnology, edited by Thomas H. Murray and Maxwell J. Mehlman, 1069–1079. New York: John Wiley & Sons, 2000.
  21. Technological Innovation and Organizations

    Keywords: Technological Innovation; Organizational Design; Organizational Change and Adaptation;

    Citation:

    Lerner, Josh, and Pierre Azoulay. "Technological Innovation and Organizations." Chap. 14 in Handbook of Organizational Economics, edited by Robert Gibbons and John Roberts, 575–603. Princeton University Press, 2012.
  22. The University and the Start-Up: Lessons from the Past Two Decades

    Keywords: Higher Education; Learning;

    Citation:

    Lerner, Josh. "The University and the Start-Up: Lessons from the Past Two Decades." Special Issue in Honor of Edwin Mansfield. Journal of Technology Transfer 30 (January 2005): 49–56.
  23. Venture Capital

    Keywords: Venture Capital;

    Citation:

    Lerner, Josh. "Venture Capital." In Technological Innovation & Economic Performance, edited by Benn Steil, David G. Victor, and Richard R. Nelson, 327–346. Princeton: Princeton University Press, 2002.
  24. Venture Capital

    Keywords: Venture Capital;

    Citation:

    Gompers, Paul, and Josh Lerner. "Venture Capital." Chap. D5 of Handbook of Modern Finance, edited by James Seward and Dennis Logue. New York: Warren, Gorham & Lamont, 2004.
  25. Venture Capital

    Keywords: Venture Capital;

    Citation:

    Gompers, Paul, and Josh Lerner. "Venture Capital." In The Technology Management Handbook, edited by Richard C. Dorf, 1–16 to 1–21. New York: CRC Press, 1999.
  26. Venture Capital

    Keywords: Venture Capital;

    Citation:

    Lerner, Josh. "Venture Capital." In The New Palgrave Dictionary of Economics. 2nd ed. Edited by Steven Derlauf and Larry Blume. Hampshire, U.K.: Palgrave Macmillan, 2008.
  27. Venture Capital and Innovation in Energy

    Citation:

    Lerner, Josh. "Venture Capital and Innovation in Energy." In Accelerating Energy Innovation: Insights from Multiple Sectors, edited by Rebecca M. Henderson and Richard G. Newell, 225–260. University of Chicago Press, 2011.
  28. Venture Capital and Private Equity: A Course Overview

    This paper describes a course exploring the private equity industry, "Venture Capital and Private Equity". The goals of this article are two-fold: to make the structure and content of the class available to a broader audience beyond the audience of MBAs and executives to whom it has been offered and to promote the development and diffusion of courses on private equity, both in the United States and abroad. The paper describes the course's objectives, structure and future directions.

    Keywords: Venture Capital; Private Equity;

    Citation:

    Lerner, Josh. "Venture Capital and Private Equity: A Course Overview." International Journal of Entrepreneurship Education 1, no. 3 (2003): 359–384.
  29. Venture Capital and the Commercialization of Academic Technology: Symbiosis and Paradox

    Keywords: Venture Capital; Commercialization; Technology; Education; Education Industry; Technology Industry;

    Citation:

    Lerner, Josh. "Venture Capital and the Commercialization of Academic Technology: Symbiosis and Paradox." In Industrializing Knowledge: University-Industry Linkages in Japan and the United States, edited by Lewis M. Branscomb, 385–409. Cambridge: MIT Press, 1999.
  30. Venture Capital and the Creation of Public Companies: Do Venture Capitalists Really Bring More than Money?

    Keywords: Venture Capital; Business Ventures; Money; Public Ownership;

    Citation:

    Gompers, Paul A., and Josh Lerner. "Venture Capital and the Creation of Public Companies: Do Venture Capitalists Really Bring More than Money?" Journal of Private Equity 1, no. 1 (Fall 1997): 15–32.
  31. The Venture Capital Revolution

    Keywords: Venture Capital;

    Citation:

    Gompers, Paul A., and J. Lerner. "The Venture Capital Revolution." Journal of Economic Perspectives 15 (spring 2001).
  32. When Bureaucrats Meet Entrepreneurs: The Design of Successful 'Public Venture Capital' Programs

    Keywords: Entrepreneurship; Design; Venture Capital; Programs;

    Citation:

    Lerner, Josh. "When Bureaucrats Meet Entrepreneurs: The Design of Successful 'Public Venture Capital' Programs." Economic Journal (Royal Economic Society) (February 2002): F73–F84. (Symposium on Funding Gaps.)

Discussions and Reviews

  1. Discussion of "Engineering Bureaucracy: The Genesis of Formal Policies, Positions, and Structures in High-Technology Firms" by James N. Baron, M. Diane Burton, and Michael T. Hannan

    Keywords: Technology; Organizational Structure; Engineering; Technology Industry;

    Citation:

    Lerner, Josh. Discussion of "Engineering Bureaucracy: The Genesis of Formal Policies, Positions, and Structures in High-Technology Firms" by James N. Baron, M. Diane Burton, and Michael T. Hannan. Special Issue on Bureaucracy: Issues and Apparatus Journal of Law, Economics & Organization 15, no. 1 (March 1999): 42–46.
  2. Discussion of "Microeconomic Policy, Technological Change, and Small Business" by Edwin Mansfield

    Citation:

    Lerner, Josh. Discussion of "Microeconomic Policy, Technological Change, and Small Business" by Edwin Mansfield. In Technology and Growth: Proceedings of the 40th Economic Conference, edited by Jeffrey C. Fuhrer and Jane Sneddon Little, 208–213. Boston: Federal Reserve Bank of Boston, 1997.
  3. Discussion of Ivory Tower and Industrial Innovation: University-Inductry Technology Transfer Before and After the Bayh-Dole Act in the United States by David C. Mowery, Richard R. Nelson, Bhaven N. Sampat, and Arvids A. Ziedonis

    Keywords: Innovation and Invention; Education; Technology; Patents; Law; Communication; United States;

  4. Discussion of 'Lean and Mean' by Bennett Harrison

    Citation:

    Lerner, Josh. "Discussion of 'Lean and Mean' by Bennett Harrison." Small Business Economics 7, no. 5 (October 1995): 345–347.
  5. Discussion of 'Open Source Genomics' by Dan Burk

    Citation:

    Lerner, Josh. "Discussion of 'Open Source Genomics' by Dan Burk." Boston University Journal of Science & Technology Law 8, no. 1 (Winter 2002).
  6. Discussion of 'Venture Capital Financing, Moral Hazard, and Learning' by Dirk Bergemann and Ulrich Hege

    Citation:

    Lerner, Josh. "Discussion of 'Venture Capital Financing, Moral Hazard, and Learning' by Dirk Bergemann and Ulrich Hege." Special Issue on The Economics of Small Business Finance Journal of Banking & Finance 22, nos. 6-8 (August 1998): 736–740.
  7. Discussion of 'Venture Capital Investment' by Gavin Reid

    Keywords: Venture Capital; Investment; Communication;

    Citation:

    Lerner, Josh. "Discussion of 'Venture Capital Investment' by Gavin Reid." Small Business Economics 15 (August 2000): 77–78.
  8. Industrial Policies, the Creation of a Learning Society, and Economic Development

    Citation:

    Greenwald, Bruce, Joseph Stiglitz, and Josh Lerner. "Industrial Policies, the Creation of a Learning Society, and Economic Development." In The Industrial Policy Revolution: The Role of Government Beyond Ideology. IEA Conference by Josh Lerner. New York: Palgrave Macmillan, 2013.

Case Studies

  1. 3i Group plc

    Brian Larcombe, CEO of 3i Group, one of the world's largest private equity firms and one of the few publicly listed ones, is deciding how best to use his firm's international network to deliver superior returns to shareholders. This case presents 3i's history and international strategy.

    Keywords: History; Networks; Private Equity; Growth Management; Global Strategy; Public Ownership; Business and Shareholder Relations; Growth and Development Strategy; Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "3i Group plc." Harvard Business School Case 803-020, March 2003. (Revised November 2003.)
  2. Aberlyn Capital Management: July 1993

    Aberlyn Capital Management, a venture leasing firm specializing in providing capital to biotechnology firms, proposes to introduce a new product. Aberlyn will base a lease on an intangible product: the patent of a biotechnology firm. This poses a series of short and longer run challenges.

    Keywords: Financing and Loans; Valuation; Product Launch; Problems and Challenges; Patents; Financial Instruments; Financial Services Industry; Biotechnology Industry;

    Citation:

    Lerner, Josh, and Peter Tufano. "Aberlyn Capital Management: July 1993." Harvard Business School Case 294-083, January 1994. (Revised November 1997.)
  3. Abraaj Capital

    Abraaj Capital addresses issues of how to respond to the fast-growing Middle East market. Questions of scaling, institutionalization, and geographic scope are among those considered.

    Keywords: Capital; Private Equity; Financing and Loans; Global Range; Markets; Strategy; Middle East;

    Citation:

    Lerner, Josh, and Ant Bozkaya. "Abraaj Capital." Harvard Business School Case 809-008, July 2008. (Revised May 2009.)
  4. Abraaj Capital and the Karachi Electric Supply Company

    In 2008, the Dubai-based private equity group Abraaj Capital Invested $360 million in Karachi Electric Supply Company, a troubled utility serving Pakistan's largest city. In 2010, the firm has made great strides in turning around the company but the transition is not complete. In fact, completing the task involves significant work in rebuilding the social contract in addition to correcting matters related to company management and electricity supply. Is this the direction for private equity in the future?

    Keywords: Energy Generation; Private Equity; Investment; Utilities Industry; Financial Services Industry; Pakistan;

    Citation:

    Lerner, Josh, Asim Ijaz Khwaja, and Ann Leamon. "Abraaj Capital and the Karachi Electric Supply Company." Harvard Business School Case 812-019, February 2012. (Revised March 2012.)
  5. Abraaj Capital and the Karachi Electric Supply Company (B)

    Two years have passed, and Tabish Gauhar must decide if now is the right time to exit KESC.

    Keywords: Personal Development and Career;

    Citation:

    Lerner, Josh, and Nathaniel Burbank. "Abraaj Capital and the Karachi Electric Supply Company (B)." Harvard Business School Supplement 814-045, November 2013.
  6. ABRY Partners, LLC: WideOpenWest

    ABRY, a Boston-based private equity group, is considering whether to terminate its investment in WideOpenWest or to try to salvage the transaction by acquiring a division of telecommunications unit Ameritech.

    Keywords: Private Equity; Investment Portfolio; Problems and Challenges; Financial Services Industry; Media and Broadcasting Industry; Boston;

    Citation:

    Lerner, Josh, and Smart Darren. "ABRY Partners, LLC: WideOpenWest." Harvard Business School Case 806-116, February 2006. (Revised January 2007.)
  7. ACA and the Union Bank Acquisition

    Okey Enelamah is the CEO of the African Capital Alliance (ACA), a private equity firm based in Nigeria. ACA has spent more than a year arranging a $500 million consortium bid to acquire and recapitalize Union Bank, Nigeria’s sixth largest bank. Several weeks before the deal is scheduled to close, the unexpected exit of several international investors has put the group’s ability to fund the deal in question. With time running out, Enelamah and the ACA investment committee must decide whether the Union Bank acquisition is still a wise investment, or whether the firm’s time, talents, and capital would be better invested in other parts of the fast-growing Nigerian economy.

    Keywords: Nigeria; African Capital Alliance; private equity; Africa; bank capital; ACA; Union Bank; Development Finance Institutions; Capital Alliance Private Equity; Private Equity; Central Banking; Banking Industry; Financial Services Industry; Nigeria; Africa;

    Citation:

    Lerner, Josh, and Nathaniel Burbank. "ACA and the Union Bank Acquisition." Harvard Business School Case 814-080, March 2014. (Revised April 2014.)
  8. Accel Partners' European Launch

    In spring 2001, with the venture market crashing all around, the London office of Accel Partners, a major west coast venture capital firm, needs to make a decision about investing in an Irish software company. As the first investment of the new European operation, the decision will serve as a proof of concept for the process that the organization has set up. This case presents Accel's strategy in moving into Europe and staying there even as many other firms shuttered or reduced their overseas' operations. In addition, the protagonists must decide how to structure a term sheet and whether to include another venture firm in the deal.

    Keywords: Investment; Growth and Development Strategy; Venture Capital; Global Strategy; Decision Choices and Conditions; Expansion; Management Practices and Processes; Partners and Partnerships; Financial Services Industry; London; United States;

    Citation:

    Hardymon, G. Felda, and Josh Lerner. "Accel Partners' European Launch." Harvard Business School Case 803-021, February 2003. (Revised May 2003.)
  9. Acme Investment Trust

    Acme Investment Trust is considering investing in a private equity partnership that is seeking only 15% of the profits, instead of the standard 20%. The management fee requested, however, is higher than in its earlier fund. The pension managers must consider the financial and organizational consequences of this shift.

    Keywords: Compensation and Benefits; Private Equity; Organizations; Investment Funds; Motivation and Incentives; Financial Services Industry;

    Citation:

    Lerner, Josh. "Acme Investment Trust." Harvard Business School Case 296-042, November 1995. (Revised October 2000.)
  10. Acme Investment Trust: January 2001

    The managers of a large corporate pension fund must decide whether to invest in a private equity fund that is offering a guaranteed rate of return of 20% on part of its portfolio. The background behind and implications of the guarantee are explored.

    Keywords: Decisions; Private Equity; Motivation and Incentives; Asset Management; Investment Funds; Financial Strategy; Financial Services Industry;

    Citation:

    Lerner, Josh. "Acme Investment Trust: January 2001." Harvard Business School Case 202-055, October 2001. (Revised February 2002.)
  11. Actis: January 2008

    Paul Feltcher, the CEO of Actis, a leading private equity investor in emerging markets, is preparing for an executive retreat at which the management team will consider how best to position the firm for the future. Actis could move in a number of different directions by expanding into new geographies, asset classes, or deal sizes. Choices made along these dimensions all have different implications for the degree of cohesion between the regions and the headquarters in London, the types of funds the firm will raise, and the skills required of employees. One of the final challenges is whether Actis, which has produced a very good track record, even needs to change its business model at this point.

    Keywords: Business Model; Private Equity; Investment; Growth and Development Strategy; Management Teams; Emerging Markets; Organizational Change and Adaptation;

    Citation:

    Hardymon, Felda, Josh Lerner, and Ann Leamon. "Actis: January 2008." Harvard Business School Case 808-130, March 2008. (Revised June 2009.)
  12. Adams Capital Management: Fund IV

    The partners of Adams Capital Management must decide whether to start their fourth fund in early 2006 or to hold off until they have realized more exits from the earlier funds and have proved the viability of a recent change in strategy.

    Keywords: Investment Funds; Business Strategy; Decision Choices and Conditions; Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Adams Capital Management: Fund IV." Harvard Business School Case 806-077, February 2006.
  13. Adams Capital Management: March 2002

    In March 2002, the five partners of Adams Capital Management (ACM), a venture capital firm investing in information technology telecommunications with $700 million under management, gathered to discuss whether they should change their strategy in view of the prolonged downturn in both the economy and their targeted investment sectors. Since its founding in 1993, ACM had followed a distinct strategy of targeting particular markets of interest, investing within these, and managing the portfolio companies through a defined process to liquidity. ACM's first fund had performed extremely well; its second was looking good; and the third, albeit only a year into its life, was not performing as well. ACM is considering three options: investing in companies producing more fundamental products, hiring more associates or investing in more markets, or taking bigger positions in companies in its traditional sectors. Each has its own possibilities and drawbacks. A rewritten version of an earlier case.

    Keywords: Decision Choices and Conditions; Economic Slowdown and Stagnation; Venture Capital; Investment Portfolio; Business or Company Management; Partners and Partnerships; Business Strategy; Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Adams Capital Management: March 2002." Harvard Business School Case 803-143, January 2003. (Revised June 2003.)
  14. AIT Group Plc

    A U.S. venture capital firm has just learned that the deal structure for purchasing an illiquid U.K. software firm is unacceptable to institutional investors. The group must decide if it still wants to go through with the deal. This decision hinges on whether the investors are confident that their due diligence has uncovered all the issues that affect both the price the investors will pay for the company and the additional amount they need to provide to help it recover.

    Keywords: Price; Business and Stakeholder Relations; Mergers and Acquisitions; Venture Capital; Financial Condition; Risk and Uncertainty; Decision Making; Financial Services Industry; United States; United Kingdom;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "AIT Group Plc." Harvard Business School Case 803-104, February 2003. (Revised January 2006.)
  15. Altoona State Investment Board: December 2008

    Rod Calhoun, the head of the Altoona State Investment Board's private equity investment program, considered the communication he had just received. It was from Permira, the leading European buyout fund, and concerned its fourth fund, to which Altoona had made a £ 100 million commitment. The memorandum offered investors a chance to reduce their commitment to Permira IV. This potential offer was an attractive one, as it would allow the state pension to address its "over-commitment problem," one that plagued many institutional investors. But the terms of the arrangement gave Calhoun pause.

    Keywords: Private Equity; Financial Management; Financial Strategy; Investment Funds; Partners and Partnerships;

    Citation:

    Lerner, Josh. "Altoona State Investment Board: December 2008." Harvard Business School Case 809-095, January 2009. (Revised May 2010.)
  16. Altoona State Investment Board: December 2008: Spreadsheet Supplement

    Keywords: Investment Funds; Accounting; Financial Services Industry; Altoona;

    Citation:

    Lerner, Josh. "Altoona State Investment Board: December 2008: Spreadsheet Supplement." Harvard Business School Spreadsheet Supplement 812-703, December 2011.
  17. Altoona State Investment Board: July 2012

    Considers the decision faced by state pension fund manager Rod Calhoun as he decides whether to invest $200 million in Bain Capital's eleventh global buyout fund: Bain Capital Fund XI. For the fund, Bain was offering its limited partners a choice between three different fee structures: first, a "conventional" fee structure of a 1.5% management fee with 20% carried interest and a 7% preferred rate of return; second, a 1% management fee with 30% carried interest and a 7% preferred rate of return; or third, a 0.5% management fee, 30% carried interest, and a 0% preferred rate of return. Should Calhoun invest in Bain? If he should, which fee structure should Calhoun choose?

    Keywords: private equity; leveraged buyouts; management fees; Bain Capital; Venture Capital; Private Equity; Leveraged Buyouts; Banking Industry; Boston;

    Citation:

    Lerner, Josh, and Nathaniel Burbank. "Altoona State Investment Board: July 2012." Harvard Business School Case 813-100, October 2012.
  18. ALZA and Bio-Electro Systems (A): Technological and Financial Innovation

    To develop the next generation of risky products, ALZA, a mature and profitable biotechnology firm specializing in drug delivery systems, must raise $40 million. Organizational constraints and competitive concerns demand that the work be done inside the firm. However, accounting considerations and concerns about shareholders' reactions to the introduction of new risks to the firm lead the CEO to consider off-balance-sheet means to finance the new venture. To finance the new venture, the firm creates a new financing vehicle: a unit consisting of callable common stock plus warrants. This case examines the CEO's decision leading up to the issue of the units and the establishment of a new research and development subsidiary.

    Keywords: Risk and Uncertainty; Technological Innovation; Business Subsidiaries; Decision Choices and Conditions; Corporate Finance; Biotechnology Industry; Medical Devices and Supplies Industry;

    Citation:

    Lerner, Josh, and Peter Tufano. "ALZA and Bio-Electro Systems (A): Technological and Financial Innovation." Harvard Business School Case 293-124, April 1993. (Revised October 1995.)
  19. ALZA and Bio-Electro Systems (B1): Rights Offering Strategy

    Supplements the (A) case. Describes the CEO's decision.

    Keywords: Strategy; Intellectual Property;

    Citation:

    Lerner, Josh, and Peter Tufano. "ALZA and Bio-Electro Systems (B1): Rights Offering Strategy." Harvard Business School Supplement 293-125, April 1993. (Revised February 1996.)
  20. ALZA and Bio-Electro Systems (B2): The Rights Offering

    Supplements the (A) case. Describes the implementation of the CEO's decision.

    Keywords: Intellectual Property;

    Citation:

    Lerner, Josh, and Peter Tufano. "ALZA and Bio-Electro Systems (B2): The Rights Offering." Harvard Business School Supplement 293-126, April 1993. (Revised February 1996.)
  21. ALZA and Bio-Electro Systems (C): 1988-92

    Supplements the (A) case. Describes the aftermarket performance of the units.

    Citation:

    Lerner, Josh, and Peter Tufano. "ALZA and Bio-Electro Systems (C): 1988-92." Harvard Business School Supplement 293-127, April 1993. (Revised February 1996.)
  22. Angels in British Columbia

    The case study provides an overview of the angel investment practices and describes government policies towards angel and venture capital investing in British Columbia, Canada. It focuses in particular on the Equity Capital Program (BCECP henceforth), which provides tax credits to private equity investors that meet several eligibility criteria. The case study is written from the point of view of a policy maker, with a perspective on the entire ecosystem. It provides an overview of the existing structure of the tax credit program, its history, and the lessons learned to date. It discusses the current challenges faced by policy makers wanting to further improve the program.

    Keywords: Venture Capital; Private Equity; Investment; Policy; Taxation; Performance Improvement; Programs; British Columbia;

    Citation:

    Lerner, Josh, Thomas Hellmann, and Ilkin Ilyaszade. "Angels in British Columbia." Harvard Business School Case 811-100, April 2011. (Revised April 2012.)
  23. Apax Partners and Dialog Semiconductor: March 1998

    Apax Partners is considering a complex buyout of a semiconductor manufacturer. The firms must assess in a compressed timeframe the complex technological, financial, and operational risks that the proposed transaction poses.

    Keywords: Market Transactions; Leveraged Buyouts; Restructuring; Time Management; Production; Risk Management; Financial Services Industry; Semiconductor Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, Antonio Alvarez-Cano, and Borja Martinez. "Apax Partners and Dialog Semiconductor: March 1998." Harvard Business School Case 201-044, February 2001. (Revised March 2001.)
  24. Apax Partners and Xerium S.A.

    In 2002, Apax Partners had to decide whether to accept a less-than-perfect offer for one of its portfolio companies or to refinance it. This company, a maker of paper industry consumables with a global presence, had been purchased in 1999 and performed extremely well since then. Despite being a solid, cash-generative operation, it didn't excite a lot of interest in the market. An early exit at a good multiple would be helpful for Apax's current fund and future fund-raising efforts, whereas refinancing would allow Apax to take some money off the table and share in future upsides. Which is the better choice?

    Keywords: Leveraged Buyouts; Globalized Markets and Industries; Business Exit or Shutdown; Borrowing and Debt; Investment; Cash Flow; Pulp and Paper Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Apax Partners and Xerium S.A." Harvard Business School Case 804-084, February 2004. (Revised September 2006.)
  25. Apex Investment Partners (A): April 1995

    The partners of Apex Investment Partners are seeking to provide financing for Accessine Technologies, a small firm specializing in providing "One Person, One Number" telecommunication services. The negotiation of the terms-and-conditions of the deal, as well as its pricing, prove challenging.

    Keywords: Negotiation Process; Negotiation Offer; Negotiation Participants; Problems and Challenges; Financing and Loans; Communication Technology; Financial Services Industry; Telecommunications Industry;

    Citation:

    Lerner, Josh. "Apex Investment Partners (A): April 1995." Harvard Business School Case 296-028, October 1995. (Revised November 1997.)
  26. Apex Investment Partners (B): May 1995

    Examines the warrant pricing.

    Keywords: Financial Instruments;

    Citation:

    Lerner, Josh, and Sanjiv R. Das. "Apex Investment Partners (B): May 1995." Harvard Business School Supplement 296-029, October 1995. (Revised November 1997.)
  27. Battery Ventures

    Todd Dagres, general partner of Battery Ventures, reflects on his firm's organization and it's effectiveness in one particular deal. One of the perennial challenges of venture capital is the scaling of the firm. Usually regarded as a craft industry, venture firms tend to have fewer than ten deal-makers. Battery has undertaken a particular approach to this problem, instituting a career path that begins at a very low level, progressing to general partner. Examining Battery making a deal demonstrates the advantages and disadvantages of this structure.

    Keywords: Venture Capital; Measurement and Metrics; Performance Effectiveness; Organizational Structure; Financial Services Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, Ann Leamon, Nitin Gupta, and Sameer Bharadwaj. "Battery Ventures." Harvard Business School Case 802-159, February 2002. (Revised March 2002.)
  28. Bay Partners (A)

    In April 2010, Salil Deshpande has recently resigned from Palo Alto, California-based Bay Partners (Bay) where he had been a general partner. Although Deshpande had built a successful track record at the venture firm, he resigned with two other Bay general partners as disagreement about internal economics and governance continued among the Bay's six-member management team. This triggered the "key man" clause in the limited partnership agreement of Bay's most recent fund, Bay XI. The case considers the options that Deshpande and the Bay XI limited partners face as the firm and fund's futures are thrown into doubt.

    Keywords: Risk and Uncertainty; Risk Management; Venture Capital; Conflict Management; Partners and Partnerships; Resignation and Termination; Policy; Management Teams; Financial Services Industry; California;

    Citation:

    Lerner, Josh, and Lauren Barley. "Bay Partners (A)." Harvard Business School Case 213-102, March 2013.
  29. BCI Growth III: May 1993

    A Vermont solid-waste company seeks mezzanine financing to finance its strategy of acquiring and consolidating local competitors. The mezzanine private equity group must decide whether this investment offers an attractive risk-return tradeoff.

    Keywords: Private Equity; Business Growth and Maturation; Consolidation; Wastes and Waste Processing; Acquisition; Service Industry; Vermont;

    Citation:

    Lerner, Josh. "BCI Growth III: May 1993." Harvard Business School Case 298-093, March 1998. (Revised December 1998.)
  30. BCI Growth III: November 1993

    Supplements BCI Growth III: May 1993.

    Keywords: Private Equity; Business Growth and Maturation; Consolidation; Acquisition; Wastes and Waste Processing; Service Industry; United States;

    Citation:

    Lerner, Josh. "BCI Growth III: November 1993." Harvard Business School Case 298-103, March 1998. (Revised June 1998.)
  31. The Blackstone Group's IPO

    Steven Schwarzman, Chairman of the Blackstone Group, has just learned that an investment group associated with the government of China wants to buy the majority of Blackstone's leveraged IPO. As he considers how to respond to this offer, Schwarzman reviews the firm's proposed structure as a public entity and assesses how he might retain the delicate balance among stakeholders while still maintaining liquidity in the market.

    Keywords: Private Equity; Financial Liquidity; Initial Public Offering; Investment; Ownership Stake; Business and Stakeholder Relations;

    Citation:

    Hardymon, Felda, Josh Lerner, and Ann Leamon. "The Blackstone Group's IPO." Harvard Business School Case 808-100, March 2008. (Revised May 2008.)
  32. Blackstone's Investment in Intelenet

    Three years had passed since Blackstone's investment in Intelenet Global Services, their third largest investment in India. Great progress had been made, but now a new challenge loomed. Globank, a large global bank, was Intelenet's largest customer. Intelenet's contract with Globank was set to expire in the next seven months, and all of Intelenet's assets and people working on the account, would move to Globank. Amit Dixit, managing director at the Blackstone Group, estimated that in the next four years this would result in Intelenet losing $160 million of revenue and $48 million of EBITDA. Blackstone could either channel large amounts of capital and human resources towards renewing the contract, or focus on growing third-party business at Intelenet. Dixit had to firm up his strategy quickly in order to begin negotiations with Globank.

    Keywords: private equity; india; Blackstone; Private Equity; Financial Services Industry; India;

    Citation:

    Lerner, Josh, Sandeep Bapat, and Rachna Tahilyani. "Blackstone's Investment in Intelenet." Harvard Business School Case 213-036, September 2012. (Revised December 2012.)
  33. Brazos Partners and Cheddar's Inc.

    Randall Fojtasek, a partner at Brazos Private Equity Partners, must decide whether to invest more money in Cheddar's restaurant chain, which the firm invested in 10 months earlier. The incremental investment would fund a real estate subsidiary that would own the property on which Cheddar's built its stores, rather than its traditional approach of sale and leaseback. As he considers the issue, Fojtasek must decide how to price the new stock, how to structure the deal to limit his firm's dilution, and how to manage the personality issues involved.

    Keywords: Negotiation Deal; Price; Partners and Partnerships; Management; Investment; Leadership; Business Subsidiaries; Stocks;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Brazos Partners and Cheddar's Inc." Harvard Business School Case 806-069, February 2006. (Revised June 2007.)
  34. Brazos Partners: the CoMark LBO

    The partners of a new midmarket buyout fund are working on a buyout of a closely held modular building company. Although originally structured as a stock deal, they have realized that an asset deal would be preferable from their point of view and are trying to determine what benefits it might hold for the sellers, whose continuing involvement in the company is essential for success. This case describes the process of the deal's due diligence and the state of the LBO industry in the early 21st century.

    Keywords: Leveraged Buyouts; Negotiation Deal; Valuation;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Brazos Partners: the CoMark LBO." Harvard Business School Case 202-090, February 2002. (Revised February 2004.)
  35. The Canada Pension Plan Investment Board

    The Canada Pension Plan Investment Board is one of the largest and fastest-growing pools of investment capital in the world and follows an unusually active program of investment management. In the market turmoil of late 2008, Mark Wiseman, Senior Vice President of the Private Investments Department, must decide if this approach is still the best way to fulfill his organization's goal of protecting and increasing the pension assets of 17 million Canadians.

    Keywords: Financial Crisis; Asset Management; Capital; Financial Management; Investment; Financial Services Industry; Canada;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "The Canada Pension Plan Investment Board." Harvard Business School Case 809-073, January 2009. (Revised April 2009.)
  36. The Canada Pension Plan Investment Board: October 2012 (CW)

    Citation:

    Rhodes-Kropf, Matthew, and Josh Lerner. "The Canada Pension Plan Investment Board: October 2012 (CW)." Harvard Business School Spreadsheet Supplement 814-704, March 2014.
  37. Candela Laser vs. Cynosure, Inc.

    Summarizes the lawsuit by Candela Laser against its former CEO and founder, who has begun a competing firm. The extent of patent and trade secret protection are crucial issues.

    Keywords: Technology; Patents; Lawsuits and Litigation; Entrepreneurship;

    Citation:

    Lerner, Josh, and Benjamin Conway. "Candela Laser vs. Cynosure, Inc." Harvard Business School Case 295-097, January 1995. (Revised November 1995.)
  38. Capital for Enterprise Limited (CfEL): Bridging the SME Early-Stage Finance Gap

    The CEO of the company set up to manage a British government effort to promote the venture capital industry considers the progress made to date, as well as how the program can be adjusted.

    Keywords: Entrepreneurship; Venture Capital; Financing and Loans; Business and Government Relations; Financial Services Industry; Public Administration Industry; United Kingdom;

    Citation:

    Lerner, Josh, Eli Talmor, Ananth Vyas Bhimavarapu, and Thibaud Simphal. "Capital for Enterprise Limited (CfEL): Bridging the SME Early-Stage Finance Gap." Harvard Business School Case 811-027, September 2010. (Revised March 2013.)
  39. The Case of the Unidentified Ratios

    Citation:

    Lerner, Josh. "The Case of the Unidentified Ratios." Harvard Business School Case 812-129, February 2012.
  40. Case Vignette: The Salesman Saga

    A venture capitalist faces a situation in which a struggling portfolio company has found a promising vice president of sales through a recruitment agency. The candidate would be an excellent fit for another one of the investor's companies--one that is doing much better. Yet, that firm has not embarked on a formal search.

    Keywords: Salesforce Management; Corporate Governance; Venture Capital; Ethics; Recruitment;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Case Vignette: The Salesman Saga." Harvard Business School Case 804-175, April 2004.
  41. CDC Capital Partners

    In 2001, CDC Capital Partners is facing the greatest challenge in its 53-year history. Founded as part of the U.K. government's post-war colonial reconstruction, it had operated as a developmental finance institution, largely issuing debt to the world's poorest countries. Now, however, it must transform itself to become a public-private partnership (PPP) dealing in private equity projects, but still restricted to the world's poorest countries. Can CDC succeed?

    Keywords: Business or Company Management; Private Equity; Emerging Markets; Cost vs Benefits; Mergers and Acquisitions; Partners and Partnerships; Financial Institutions; Financial Services Industry; United Kingdom;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "CDC Capital Partners." Harvard Business School Case 801-333, February 2001. (Revised April 2001.)
  42. CDC Capital Partners: December 2002

    Paul Fletcher, CEO of CDC Capital Partners, a private equity group investing in the world's poorest countries, is wrestling with questions raised by the imminent reorganization of the firm. Previously an arm of the United Kingdom's international aid agency, CDC is becoming a public-private partnership, which requires that it refocus its efforts and rearrange its widespread portfolio into a form that outside investors will recognize. The proposed organization, separating government money from fund management, appears to solve a number of the problems from a strategic perspective, yet a host remain. Given the generally poor risk/return ratio of emerging market investing over the past decade, Fletcher and his executives must decide how they can position their organization to compete with other investment vehicles and still remain true to the mission of mobilizing capital to invest in poor countries.

    Keywords: Private Equity; Investment Portfolio; Privatization; Venture Capital; Business and Government Relations; Emerging Markets; Infrastructure; Financial Services Industry; Banking Industry; United Kingdom;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "CDC Capital Partners: December 2002." Harvard Business School Case 803-167, March 2003. (Revised January 2004.)
  43. Chengwei Ventures and the hdt* Investment

    Bo Feng, cofounder and principal in Chengwei Ventures, one of the first sovereign venture capital firms in China, is trying to decide on the proper business model for hdt, the product of a merger between two portfolio companies. This case discusses the best way for the new company, which designs Web sites and provides customer relationship management and ad-serving software, to prosper in China's changing market.

    Keywords: Venture Capital; Mergers and Acquisitions; Customer Relationship Management; Sovereign Finance; Management Analysis, Tools, and Techniques; Entrepreneurship; Web Sites; Software; Markets; Business Model; Financial Services Industry; China;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Chengwei Ventures and the hdt* Investment." Harvard Business School Case 802-089, February 2002. (Revised April 2002.)
  44. Christo and Jeanne-Claude: The Art of the Entrepreneur

    Christo and Jeanne-Claude, the artists who created The Gates in New York City in 2005, are trying to decide how best to finance their next project. Over the River, a project to drape sections of the Arkansas River with translucent fabric is a very different enterprise from The Gates. Bank Leu, the Swiss back that had provided a line of credit for The Gates, has declined the opportunity to participate in Over the River. As Christo and Jeanne-Claude review the Bank Leu vehicle, they must consider whether it is replicable to other projects and institutions or whether they should consider a different approach.

    Keywords: Private Equity; Arts; Fine Arts Industry; Arkansas;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Christo and Jeanne-Claude: The Art of the Entrepreneur." Harvard Business School Case 806-014, February 2006. (Revised August 2006.)
  45. CMGI: Organizational and Market Innovation

    CMGI is considering acquiring yesmail, an e-mail marketing firm. In assessing the potential acquisition, it must assess the fit with its own organization, which consists of a unique blend of venture capital investments and publicly traded subsidiaries.

    Keywords: Innovation and Invention; Organizational Change and Adaptation; Mergers and Acquisitions; Organizational Structure; Venture Capital; Business Subsidiaries;

    Citation:

    Lerner, Josh. "CMGI: Organizational and Market Innovation." Harvard Business School Case 200-064, May 2000.
  46. Cost of Capital Problems

    Citation:

    Lerner, Josh. "Cost of Capital Problems." Harvard Business School Background Note 813-152, January 2013.
  47. EMC Corporation: Response to Shareholder Litigation (A)

    EMC Corp. is the target of a shareholder class-action lawsuit for the second time. CEO, Richard Egan, must decide whether to settle the case, as is done in 96% of such cases and as EMC itself did previously, or fight the action.

    Keywords: Decision Choices and Conditions; Lawsuits and Litigation; Going Public; Management Teams; Business and Shareholder Relations; Technology Industry; United States;

    Citation:

    Lerner, Josh. "EMC Corporation: Response to Shareholder Litigation (A)." Harvard Business School Case 294-070, January 1994. (Revised April 1995.)
  48. EMC Corporation: Response to Shareholder Litigation (B)

    Reports EMC's decision concerning the second shareholder class-action suit and its implications. Legislative efforts to reform securities litigation are also discussed.

    Keywords: Decisions; Lawsuits and Litigation; Going Public; Policy; Management Teams; Business and Shareholder Relations; Technology Industry; United States;

    Citation:

    Lerner, Josh. "EMC Corporation: Response to Shareholder Litigation (B)." Harvard Business School Case 294-071, January 1994. (Revised April 1994.)
  49. Endeca Negotiation, The: Charlie Yie

    Students play the role of Charlie Yie, a venture capitalist considering an investment in a venture-backed enterprise software company. In the challenging financing climate of the Fall of 2001, he is trying to decide what terms to offer the company as an outside investor leading its C-round. Presents the background of the company and the lengthy struggle that existing investors and the CEO endured just to get a term sheet.

    Keywords: Negotiation Process; Negotiation Offer; Management Teams; Venture Capital; Valuation; Software; Information Technology Industry; Web Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Endeca Negotiation, The: Charlie Yie." Harvard Business School Exercise 802-214, May 2002. (Revised May 2003.)
  50. Endeca Negotiation, The: Hardy Smith

    Students play the role of Hardy Smith, one of the founding investors of a venture-backed enterprise software company. In the challenging financing climate of the fall of 2001, he is trying to decide what terms to offer the company as an insider-funded C-round. Presents the background of the company and the lengthy struggle that Hardy and the CEO endured just to get a term sheet.

    Keywords: Negotiation Process; Negotiation Offer; Management Teams; Venture Capital; Valuation; Software; Information Technology Industry; Web Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Endeca Negotiation, The: Hardy Smith." Harvard Business School Exercise 802-213, May 2002. (Revised May 2003.)
  51. Endeca Negotiation, The: Steve Papa

    Students play the role of Steve Papa, the CEO and founder of a venture-backed enterprise software company. In the challenging financing climate of the fall of 2001, he knows that two different groups are about to submit term sheets for his company's C-round. He is trying to decide what he should aim for in the ensuing negotiation. Presents the background of the company and the lengthy battle Steve fought just to get a term sheet. He has two months of cash left and a number of issues to consider, including a founding investor's request to change the terms of a previous round.

    Keywords: Negotiation Process; Negotiation Offer; Management Teams; Venture Capital; Valuation; Software; Information Technology Industry; Web Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Endeca Negotiation, The: Steve Papa." Harvard Business School Exercise 802-212, May 2002. (Revised May 2003.)
  52. Endeca Technologies (A)

    Steve Papa, CEO of Endeca Technologies, must decide among two term sheets raising the same amount of badly needed money for his young software company. One deal is led by insiders and, is offered at a lower price. It continues a board that has worked very well and shares a common vision. It also is likely to involve a very important potential customer. The second offer comes from a group with which Papa does not have history. Although it carries a higher price, it will change the board structure and also requires that the closing be delayed a week, from September 7, 2001, to September 14. The company has cash only into October so, if anything goes wrong, Papa is unlikely to be able to arrange alternate financing. Discusses which option he should accept.

    Keywords: Venture Capital; Cost vs Benefits; Financial Condition; Financing and Loans; Management Skills; Financial Strategy; Corporate Finance; Information Technology Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Endeca Technologies (A)." Harvard Business School Case 802-141, February 2002. (Revised May 2003.)
  53. Endeca Technologies (B)

    Supplements the (A) case.

    Keywords: Information Technology Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Endeca Technologies (B)." Harvard Business School Case 802-142, February 2002. (Revised May 2002.)
  54. European Association of Security Dealers, The: November 1994

    Keywords: Europe;

    Citation:

    Lerner, Josh. "European Association of Security Dealers, The: November 1994." Harvard Business School Case 295-116, February 1995. (Revised March 1998.)
  55. Exxel Group, The

    Citation:

    Lerner, Josh, Alex Hoye, and Gonzalo Pacanins. "Exxel Group, The." Harvard Business School Case 297-103, April 1997.
  56. Exxel Group, The: March 2001

    The Exxel Group, a leading Latin American buyout fund, faces a challenge when deciding whether and how to exit its largest investment. The capital markets are very weak, precluding an initial public offering. Undertaking a trade sale of the firm, however, proves to be challenging.

    Keywords: Venture Capital; Private Equity; Leveraged Buyouts; Capital Markets; Investment Funds; Financial Strategy; Financial Services Industry; Latin America;

    Citation:

    Lerner, Josh, and Alberto Ballve. "Exxel Group, The: March 2001." Harvard Business School Case 202-053, October 2001. (Revised March 2003.)
  57. The Exxel Group: September 1995

    The Exxel Group, a private equity group based in Buenos Aires, is considering a buyout of Argencard, Mastercard's exclusive licensee in Argentina. To complete the deal, however, it will need to raise additional financing from U.S. investors. Both the valuation and the terms of the proposed deal prove problematic.

    Keywords: Leveraged Buyouts; Developing Countries and Economies; Private Equity; Financing and Loans; Investment; Negotiation Deal; Problems and Challenges; Valuation; United States; Buenos Aires;

    Citation:

    Lerner, Josh, Alex Hoye, and Gonzalo Pacanins. "The Exxel Group: September 1995." Harvard Business School Case 297-068, February 1997. (Revised October 2002.)
  58. Firm Strategy Vignettes

    These three vignettes present various issues around the strategy and management of a private equity firm. In one, a senior partner must decide how to manage an over-extended colleague and how to reduce the risk of the firm's portfolio; in the second, a limited partner must decide how to respond to tensions between general partners in a fund, and in the third, the general partners must decide whether to invest in an intriguing opportunity that lies outside the firm's carefully developed investment strategy.

    Keywords: Outcome or Result; Business Strategy; Problems and Challenges; Private Equity; Venture Capital; Investment Portfolio; Partners and Partnerships;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Firm Strategy Vignettes." Harvard Business School Compilation 810-087, January 2010. (Revised March 2010.)
  59. Fojtasek Companies and Heritage Partners, The: October 1998

    Provides an update.

    Citation:

    Lerner, Josh. "Fojtasek Companies and Heritage Partners, The: October 1998." Harvard Business School Case 200-014, October 1999.
  60. Fojtasek Companies and Heritage Partners, The: March 1995

    The Fojtasek Companies, a family business, faces several financing choices to address generational succession issues. Several buyouts have expressed interest in acquiring the firm outright; an investment bank has proposed a leveraged recapitalization; and a private equity group, Heritage Partners, has proposed a hybrid transaction.

    Keywords: Family Ownership; Financing and Loans; Private Equity; Mergers and Acquisitions; Investment Banking; Partners and Partnerships; Management Succession; Capital Structure; Financial Strategy;

    Citation:

    Hayes, Samuel L., III, and Josh Lerner. "Fojtasek Companies and Heritage Partners, The: March 1995." Harvard Business School Case 297-046, January 1997. (Revised November 1997.)
  61. FOX Venture Partners: Enriching the Private Equity Investor Pool

    FOX Venture Partners (FVP) is a proposed "Fund-of-Funds" that will enable wealthy individuals to invest in venture capital. While several leading venture capitalists are enthusiastic about the concept, FVP's general partners are finding it difficult to invest individually in the fund.

    Keywords: Private Equity; Investment Funds;

    Citation:

    Lerner, Josh. "FOX Venture Partners: Enriching the Private Equity Investor Pool." Harvard Business School Case 296-041, December 1995. (Revised March 1998.)
  62. Francisco Partners

    Francisco Partners (which focuses on buyouts of high-technology firms) aims to be the largest first-time fund ever raised. The rationales for the fund, fundraising strategy, and partnership terms and conditions are among the topics explored.

    Keywords: Private Equity; Leveraged Buyouts; Venture Capital; Financial Strategy; Partners and Partnerships; Strategy; Investment Funds; Financial Services Industry;

    Citation:

    Lerner, Josh, and David L. Gallo. "Francisco Partners." Harvard Business School Case 200-063, April 2000.
  63. Glynn Roberts: February 2003

    Citation:

    Lerner, Josh. "Glynn Roberts: February 2003." Harvard Business School Case 813-148, January 2013.
  64. GMIMCo Venture Capital: September 1996

    Kathryn Stokel must choose between three venture capital groups (if any) in which to invest the pension fund of General Motors Corp. Each has distinct strengths and weaknesses.

    Keywords: Private Equity; Asset Management; Retirement; Investment Funds; Venture Capital; Financial Services Industry;

    Citation:

    Lerner, Josh, Peter Wendell, and Catherine M. Conneely. "GMIMCo Venture Capital: September 1996." Harvard Business School Case 298-052, August 1997. (Revised September 1997.)
  65. GO Corporation

    GO faces a crisis in March 1991 when Microsoft announces the introduction of a competing operating system for pen-based computers. GO's managers must work with its venture financers, Kleiner Perkins, to redesign its financing, alliance, and product development strategies.

    Keywords: Value Creation; Technology Platform; Competition; Private Equity; Adaptation; Crisis Management; Information Technology Industry; Computer Industry;

    Citation:

    Lerner, Josh, Thomas J. Kosnik, Tarek AbuZayyad, and Paul C. Yang. "GO Corporation." Harvard Business School Case 297-021, September 1996. (Revised April 1997.)
  66. Gobi Partners and DMG

    Thomas G. Tsao, founding general partner of Gobi Partners, an early stage venture capital firm in China, must decide how to manage his firm's largest investment after the departure of the CEO. Tom has temporarily stepped in as CEO, but finding a replacement with the necessary technical and language skills is difficult. Moreover, the company is facing significant challenges in winning business and restructuring its own operations. Should Tom stay on as CEO? Revisit one of the candidates who had withdrawn? Try harder to sell the company? At what price? The case provides an opportunity to discuss the issue of active investment management in an emerging market from the perspectives of the many stakeholders involved.

    Keywords: Restructuring; Competency and Skills; Decision Choices and Conditions; Venture Capital; Investment; Business or Company Management; Management Succession; Emerging Markets; Problems and Challenges; Business and Stakeholder Relations; China;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Gobi Partners and DMG." Harvard Business School Case 810-095, January 2010. (Revised April 2010.)
  67. Gold Hill Venture Lending

    David Fischer is trying to raise $200 million for a first-time venture debt fund that will be affiliated with Silicon Valley Bank, a major technology lender. Despite his lengthy experience in venture lending, the process is proving difficult. He and his partners are considering whether to continue trying to raise the full amount or to close a smaller sum that is readily available and prove the model before trying to raise a larger fund. In making their decision, the partners must consider the structure of the fund and the value added by their links to the bank as well as how to counter conflict of interest concerns raised by the potential limited partners.

    Keywords: Technology; Value Creation; Venture Capital; Partners and Partnerships; Decision Choices and Conditions; Investment Funds; Banking Industry; Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Gold Hill Venture Lending." Harvard Business School Case 804-083, January 2004. (Revised May 2005.)
  68. Grove Street Advisors

    Grove Street Advisors, a manager of customized private equity investment products, has been very successful in its first five years. To grow, the group must decide whether to target smaller organizations, revive its coinvestment efforts, or enter the highly competitive fund-of-funds market.

    Keywords: Business Organization; Decision Choices and Conditions; Private Equity; Investment; Market Entry and Exit; Competitive Strategy;

    Citation:

    Hardymon, G. Felda, Josh Lerner, Ann Leamon, and Frank Angella. "Grove Street Advisors." Harvard Business School Case 804-050, December 2003. (Revised May 2004.)
  69. Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market

    The private equity group Hony Capital considers what to do with their investment in Zoomlion, which has been successful to date. The question is whether to take their money off the table or to invest in their acquisition of a large Italian competitor.

    Keywords: Private Equity; Financial Strategy; Investment; Emerging Markets; Financial Services Industry; China;

    Citation:

    Lerner, Josh, and Yiwen Jin. "Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market." Harvard Business School Case 811-032, October 2010. (Revised January 2012.)
  70. ImmuLogic Pharmaceutical Corporation (A): March 1991

    ImmuLogic Pharmaceutical Corp., a development-stage biotechnology company, is considering making an initial offering of common stock. The diverse perspectives of the entrepreneur, venture capitalist, investment banker, and institutional investor are explored. Problems of valuation are highlighted. The challenges posed by "windows" for public offerings are considered.

    Keywords: Decisions; Entrepreneurship; Venture Capital; Banks and Banking; Initial Public Offering; Going Public; Perspective; Valuation; Biotechnology Industry; Pharmaceutical Industry;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (A): March 1991." Harvard Business School Case 293-066, October 1992. (Revised November 1997.)
  71. ImmuLogic Pharmaceutical Corporation (Abridged)

    ImmuLogic Pharmaceutical Corp., a development-stage biotechnology company, is considering making an initial offering of common stock. The rationales for and problems of high-technology start-ups are explored. The challenges posed by "windows" for public offerings are highlighted.

    Keywords: Decisions; Initial Public Offering; Entrepreneurship; Going Public; Business Startups; Biotechnology Industry; Pharmaceutical Industry; United States;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (Abridged)." Harvard Business School Case 293-087, December 1992. (Revised September 1996.)
  72. ImmuLogic Pharmaceutical Corporation (B1): Malcolm Gefter

    Supplements the (A) case.

    Keywords: Pharmaceutical Industry;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (B1): Malcolm Gefter." Harvard Business School Supplement 293-067, October 1992. (Revised March 1993.)
  73. ImmuLogic Pharmaceutical Corporation (B2): Henry McCance

    Supplements the (A) case.

    Keywords: Pharmaceutical Industry;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (B2): Henry McCance." Harvard Business School Supplement 293-068, October 1992. (Revised April 1993.)
  74. ImmuLogic Pharmaceutical Corporation (B3): Katherine Kirk

    Supplements the (A) case.

    Keywords: Pharmaceutical Industry;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (B3): Katherine Kirk." Harvard Business School Supplement 293-069, October 1992. (Revised March 1993.)
  75. ImmuLogic Pharmaceutical Corporation (B4): Phillip Gross

    Supplements the (A) case.

    Keywords: Pharmaceutical Industry;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (B4): Phillip Gross." Harvard Business School Supplement 293-070, October 1992. (Revised April 1993.)
  76. ImmuLogic Pharmaceutical Corporation (C): April 1991

    Supplements the (A) case.

    Keywords: Pharmaceutical Industry;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (C): April 1991." Harvard Business School Supplement 293-071, October 1992. (Revised March 1993.)
  77. Innova Capital: The Transition

    The partners at Innova Capital, a leading mid-market private equity investor in Poland, must negotiate a transition of power between the two ex-patriate founders and three talented young Polish partners. If they fail to find an accomodation, the entire firm will self-destruct. This case explores the long-running process through which they were able to reach an agreement and the different motivations and goals that each partner wanted to achieve.

    Keywords: entrepreneurship; private equity; firm structure; venture capital; negotiation; investment; career management; emerging market; succession; Entrepreneurship; Private Equity; Venture Capital; Negotiation; Investment;

    Citation:

    Lerner, Josh, and Ann Leamon. "Innova Capital: The Transition." Harvard Business School Case 813-064, October 2012. (Revised February 2013.)
  78. In-Q-Tel

    The Central Intelligence Agency establishes a venture-enabled fund, In-Q-Tel, to allow it to access cutting-edge technologies. Fund managers face a variety of difficulties, some similar to those facing other institutionally affiliated venture funds and some unique.

    Keywords: Technological Innovation; Venture Capital; Investment Funds; Problems and Challenges; Government Administration; Public Administration Industry; United States;

    Citation:

    Lerner, Josh, G. Felda Hardymon, Kevin Book, and Ann Leamon. "In-Q-Tel." Harvard Business School Case 804-146, February 2004. (Revised May 2005.)
  79. Investitori Associati: Exiting the Savio LBO (A)

    Investitori Associati seeks to exit a leveraged buyout investment. Choosing the appropriate way in which to undertake their exit-an initial public offering or sale of the firm-proves problematic.

    Keywords: Private Equity; Initial Public Offering; Business Exit or Shutdown; Leveraged Buyouts;

    Citation:

    Lerner, Josh, Dino Cattaneo, and Giampiero Mazza. "Investitori Associati: Exiting the Savio LBO (A)." Harvard Business School Case 299-048, February 1999. (Revised June 1999.)
  80. Investitori Associati: Exiting the Savio LBO (B)

    Supplements the (A) case.

    Keywords: Leveraged Buyouts; Investment;

    Citation:

    Lerner, Josh. "Investitori Associati: Exiting the Savio LBO (B)." Harvard Business School Case 299-106, June 1999.
  81. Iris Running Crane: December 2009

    Iris Running Crane, an MBA candidate, must choose among three different job offers in private equity. One is with a top-tier megafund buyout operation; the second with a geographically focused mid-market fund; and the third with a one-time top-tier fund that is trying to reposition itself as a turnaround expert, starting with its own portfolio. Iris must consider the advantages and drawbacks of each position, and how each will help her achieve her personal goals.

    Keywords: Decision Choices and Conditions; Private Equity; Compensation and Benefits; Job Offer; Personal Development and Career; Financial Services Industry;

    Citation:

    Rhodes-Kropf, Matthew, Josh Lerner, and Ann Leamon. "Iris Running Crane: December 2009." Harvard Business School Case 810-073, December 2009. (Revised July 2013.)
  82. Ithmar Capital

    The founders of Ithmar Capital, a mid-market private equity fund targeting businesses in and addressing the Gulf Co-operation Council countries, are about to raise their third fund, targeting $1 billion. The firm's current strategy as demonstrated in Funds I ($70 million) and II ($250 million) emphasized careful targeting of sectors and in-depth work to develop the portfolio companies post-acquisition. With the industry's greater velocity and deal size, can Ithmar continue to pursue this strategy even with a larger fund?

    Keywords: Private Equity; Financial Management; Investment Funds; Investment Portfolio; Financial Services Industry;

    Citation:

    Lerner, Josh, and Ann Leamon. "Ithmar Capital." Harvard Business School Case 809-032, September 2008. (Revised September 2010.)
  83. Lion Capital and the Blackstone Group: The Orangina Deal

    The managing partners of two private equity firms are hoping to forestall a third bidding round for a target company, the European beverage division of Cadbury Schweppes. As they wait to meet with the CEO, they revisit their assumptions on the deal and review the insights that informed their valuation.

    Keywords: Mergers and Acquisitions; Private Equity; Negotiation Deal; Negotiation Process; Partners and Partnerships; Valuation; Europe;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Lion Capital and the Blackstone Group: The Orangina Deal." Harvard Business School Case 807-005, December 2006. (Revised May 2008.)
  84. Martin Smith: January 2002

    An MBA student must choose between offers from three private equity organizations. Each organization has distinct strengths and weaknesses, and different implications for the student's career development. The case presents compensation and employment data about the private equity industry. Teaching Note: Introduces the private equity industry and the key offerings between groups.

    Keywords: Private Equity; Compensation and Benefits; Data and Data Sets; Job Offer; Personal Development and Career;

    Citation:

    Lerner, Josh. "Martin Smith: January 2002." Harvard Business School Case 298-076, November 1997. (Revised January 2003.)
  85. Martin Smith: May 2000

    A new associate at a venture capital firm must choose which of three potential investments to recommend to the firm's partners. Each potential investment has strengths and drawbacks.

    Keywords: Venture Capital; Investment; Valuation;

    Citation:

    Hardymon, G. Felda, and Josh Lerner. "Martin Smith: May 2000." Harvard Business School Case 200-046, March 2000. (Revised April 2000.)
  86. Martin Smith: July 2012

    Martin Smith, a recently hired general partner at a Brazil-based venture capital firm, must decide among three deal opportunities. Each has different strengths (management, market, and technology) but each has its own weaknesses as well. He must also consider each deal in the context of the firm's situation and his own career.

    Keywords: private equity; deal choice; venture capital; Investments; career management; Management Teams; Decision Choices and Conditions; Cost vs Benefits; Personal Development and Career; Financial Services Industry; Brazil;

    Citation:

    Lerner, Josh, and Felda Hardymon. "Martin Smith: July 2012." Harvard Business School Case 813-067, September 2012. (Revised January 2013.)
  87. Martin Smith: May 2002

    Martin Smith, a recent HBS graduate, has just begun working with a leveraged buyout firm. His first assignment is to evaluate three different deals and make recommendations to the partners. As he studies the deals, he realizes that each has different merits and drawbacks and that his recommendation must take into account not only the specifics of each target company but also the situation of his firm. Also, he must consider the stage of his career and that of the senior partner.

    Keywords: Leveraged Buyouts; Personal Development and Career; Financial Strategy; Partners and Partnerships;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Martin Smith: May 2002." Harvard Business School Case 802-160, January 2002. (Revised April 2002.)
  88. Messer Griesheim (A)

    In 2001, Allianz Capital Partners and Goldman Sachs acquired a majority stake in Messer Griesheim, a European industrial gas concern held by Hoechst. The dealmakers faced several challenges, including delicate corporate governance issues due to partial family ownership and a consolidating market for industrial gases. Aiming to make Messer Griesheim a more attractive potential acquisition, Messer Griesheim management had drawn up a restructuring plan as early as 2000. By late 2003 the private equity players were ready to exit and the Messer family agitated for further control. Several factors were in play: the family had a buy-back option, the window of which was quickly closing; there were few possible strategic buyers, given the anti-trust issues facing a European player interested in buying the firm; and the family made no secret of its desire to retain a piece of the firm, at the very least, and some measure of control. The case explores the steps taken by the private equity investors to restructure the firm, and the relationship the partners forged with the family owners, to bring about a favorable exit for the private equity partners and ownership for the Messer family.

    Keywords: Mergers and Acquisitions; Restructuring; Venture Capital; Private Equity; Corporate Governance; Family Ownership; Chemical Industry; Industrial Products Industry; Europe;

    Citation:

    Lerner, Josh, Ann-Kristin Achleitner, Eva Lutz, and Kerry Herman. "Messer Griesheim (A)." Harvard Business School Case 809-056, February 2009. (Revised March 2013.)
  89. Messer Griesheim (A) (Abridged)

    In 2001, Allianz Capital Partners and Goldman Sachs acquired a majority stake in Messer Griesheim, a European industrial gas concern held by Hoechst. The dealmakers faced several challenges, including delicate corporate governance issues due to partial family ownership and a consolidating market for industrial gases. Aiming to make Messer Griesheim a more attractive potential acquisition, Messer Griesheim management had drawn up a restructuring plan as early as 2000. By late 2003 the private equity players were ready to exit and the Messer family agitated for further control. Several factors were in play: the family had a buy-back option, the window of which was quickly closing; there were few possible strategic buyers, given the anti-trust issues facing a European player interested in buying the firm; and the family made no secret of its desire to retain a piece of the firm at the very least and some measure of control. The case explores the the steps taken by the private equity investors to restructure the firm, and the relationship the partners forged with the family owners, to bring about a favorable exit for the private equity partners and ownership for the Messer family.

    The case explores the steps taken by private equity investors to restructure a European industrial gas concern held by Hoechts, and complicated by partial family ownership. The case considers the relationship the partners forged with the family owners to bring about a favorable exit for the private equity partners and ownership for the Messer family.

    Keywords: private equity; venture capital; Germany; energy; Private Equity; Venture Capital; Energy Industry; European Union;

    Citation:

    Lerner, Josh, Eva Lutz, and Kerry Herman. "Messer Griesheim (A) (Abridged)." Harvard Business School Case 813-018, August 2012.
  90. Messer Griesheim (B)

    In 2001, Allianz Capital Partners and Godlman Sachs acquired a majority stake in Messer Greisheim, a European industrial gas concern held by Hoeschst. The dealmakers faced several challenges, including delicate corporate governance issues due to partial family ownership and a consolidating sector. By late 2003 the private equity players were ready to exit and the Messer family agitated for further control. Several factors were in play: the family had a buy-back option, the window of which was quickly closing; there were few possible strategic buyers, given the anti-trust issues facing a European player interested in buying the firm; and the family made no secret of its desire to retain a piece of the firm at the very least and some measure of control. The case provides an update post-exit.

    Keywords: Mergers and Acquisitions; Private Equity; Stock Options; Stock Shares; Corporate Governance; Governance Controls; Family Ownership; Problems and Challenges; Energy Industry; Europe;

    Citation:

    Lerner, Josh, Ann-Kristin Achleitner, Eva Lutz, and Kerry Herman. "Messer Griesheim (B)." Harvard Business School Supplement 809-057, February 2009. (Revised March 2013.)
  91. Montagu Private Equity (A)

    Describes the dilemma facing Chris Masterson, the head of HSBC's private equity division, in negotiating this team's buyout of its organization from HSBC, its corporate parent since 1992. Discusses the pros and cons of being a captive fund and the delicate balance among many interests--limited partners, team members, the parent, and the investee companies--that must be maintained.

    Keywords: Private Equity; Balance and Stability; Asset Pricing;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Montagu Private Equity (A)." Harvard Business School Case 804-051, January 2004. (Revised May 2004.)
  92. NCH Capital and Univermag Ukraina

    NCH Capital is considering whether to sell its Ukrainian company Univermag Ukraina, which it has held and built up over the past decade.

    Keywords: Opportunities; Private Equity; Problems and Challenges; Developing Countries and Economies; Retail Industry; Ukraine;

    Citation:

    Lerner, Josh, and John Didiuk. "NCH Capital and Univermag Ukraina." Harvard Business School Case 807-143, February 2007. (Revised March 2007.)
  93. New Business Investment Company: October 1997

    A quasi-government organization seeks to stimulate entrepreneurship in Japan by making venture capital investments. The organization of the fund, identification of transactions, and oversight of portfolio firms pose considerable challenges.

    Keywords: Venture Capital; Entrepreneurship; Government and Politics; Problems and Challenges; Financial Services Industry; Japan;

    Citation:

    Lerner, Josh, Lee Branstetter, and Takeshi Nakabayashi. "New Business Investment Company: October 1997." Harvard Business School Case 299-025, June 1999. (Revised March 2001.)
  94. Northeast Ventures: January 1996

    Northeast Ventures, a venture capital fund focusing on the development of northeastern Minnesota, seeks to combine social goals with financial returns. This marriage poses several challenges.

    Keywords: Venture Capital; Social Enterprise; Investment Funds; Minnesota;

    Citation:

    Lerner, Josh, and Eric K. Jackson. "Northeast Ventures: January 1996." Harvard Business School Case 296-093, May 1996. (Revised November 1997.)
  95. Oriental Fortune Capital: Building a Better Stock Exchange

    When ChiNext opened in October 2009 as the second tier market of the Shenzhen Stock Exchange (SZSE), it aimed to provide Chinese entrepreneurs with equity capital and to facilitate the exits of venture capital firms and other investors which had previously relied on the New York, London, and Hong Kong markets for public offerings. A year into ChiNext's operation, Dr. Wei Chen, Chairman and founder of Oriental Fortune Capital, one of the fastest-growing venture capital firms in China, met with an SZSE research fellow to discuss how the rules governing the market might be adjusted to allow more firms to list and, more importantly, to improve efficiency and transparency in order to make ChiNext a better stock exchange.

    Keywords: Capital Markets; Stocks; Financial Markets; Venture Capital; Private Equity; International Finance; Financial Services Industry; China;

    Citation:

    Lerner, Josh, and Keith Chi-ho Wong. "Oriental Fortune Capital: Building a Better Stock Exchange." Harvard Business School Case 811-105, May 2011.
  96. OuterLink Corporation (A)

    Zero Stage Capital is addressing a troubled investment in OuterLink Corp., which has a capital deficit of $30 million and was written off by all but one of its investors as a victim of the technology bubble. The venture organization must decide whether to shutter the investment or put more capital to work.

    Keywords: Technology; Decisions; Venture Capital; Private Equity; Price Bubble; Investment; Financial Services Industry;

    Citation:

    Lerner, Josh, and Brenda Chia. "OuterLink Corporation (A)." Harvard Business School Case 806-059, September 2005. (Revised May 2007.)
  97. OuterLink Corporation (B)

    Citation:

    Lerner, Josh, and Brenda Chia. "OuterLink Corporation (B)." Harvard Business School Supplement 807-158, April 2007.
  98. Outrage in Cyberspace: CompuServe and the GIF Patent

    CompuServe, an online services vendor, informs its software developers that they must enter into a licensing agreement to use the popular GIF compression. CompuServe claims that it is forced to do so because Unisys is enforcing its patent rights in this area. Others argue that CompuServe's move is a response to the growing competitive challenge posed by the Internet.

    Keywords: Patents; Technological Innovation; Internet; Information Technology; Competitive Strategy; Search Technology; Web Services Industry;

    Citation:

    Lerner, Josh, and Benjamin Conway. "Outrage in Cyberspace: CompuServe and the GIF Patent." Harvard Business School Case 296-057, January 1996.
  99. Repligen Corporation: January 1992

    Sandford Smith, CEO of Repligen, faces the breakdown of negotiations about a proposed joint venture with a large pharmaceutical firm. He must decide whether to proceed using his firm's internal resources or whether to seek to revise the proposed collaboration. If the deal is to be revived, he must decide on what aspects to compromise.

    Keywords: Joint Ventures; Decisions; Contracts; Agreements and Arrangements; Value;

    Citation:

    Lerner, Josh, and David Kane. "Repligen Corporation: January 1992." Harvard Business School Case 294-082, January 1994. (Revised July 1998.)
  100. RogersCasey Alternative Investments: Innovative Response to the Distribution Challenge

    RogersCasey Alternative Investments faces the challenge of managing distributions of stock by the private equity investors in which their clients have invested. These distributed shares appear to behave in complex ways, apparently at odds with market efficiency. A variety of strategies to capitalize on this behavior are considered.

    Keywords: Private Equity; Stocks; Financial Strategy; Investment; Innovation Strategy; Management; Distribution; Performance; Behavior;

    Citation:

    Lerner, Josh. "RogersCasey Alternative Investments: Innovative Response to the Distribution Challenge." Harvard Business School Case 296-024, September 1995. (Revised May 1998.)
  101. Schroder Ventures: Launch of the Euro Fund

    Schroder Ventures is considering launching a pan-European fund in response to investor demand. This will lead to changes in the interactions between the parent organization and the national affiliates. A related question is the extent to which the private equity model can be transplanted across national boundaries.

    Keywords: Change; Private Equity; Investment Funds; Multinational Firms and Management; Product Launch; Europe;

    Citation:

    Lerner, Josh, Kate Bringham, and Nick Ferguson. "Schroder Ventures: Launch of the Euro Fund." Harvard Business School Case 297-026, October 1996. (Revised March 1998.)
  102. Scripps Research Institute, The: November 1993 (Abridged)

    In November 1993, Dr. Richard Lerner, president of the Scripps Research Institute, faces the challenge of maintaining his organization's financial and scientific vitality. A proposed cooperative venture with Sandoz has attracted considerable criticism. Meanwhile, a new proposal to conduct clinical trials presents intriguing possibilities. Teaching Purpose: To understand how federal policy directly and indirectly shapes high-technology industries, to explore financing new ventures in a nonprofit research organization, and to value a proposed new venture.

    Keywords: Joint Ventures; Financing and Loans; Policy; Management; Organizational Change and Adaptation; Problems and Challenges; Research; Nonprofit Organizations;

    Citation:

    Lerner, Josh. "Scripps Research Institute, The: November 1993 (Abridged)." Harvard Business School Case 295-068, November 1994. (Revised December 1995.)
  103. Start-Up Chile: April 2012

    Start-Up Chile is a unique program to encourage entrepreneurs to bring their new ventures to Chile. Policymakers must evaluate its effectiveness in achieving economic and social goals.

    Keywords: Entrepreneurship; Venture Capital; Policy; Chile;

    Citation:

    Applegate, Lynda M., William R. Kerr, Josh Lerner, Dina D. Pomeranz, Gustavo A. Herrero, and Cintra Scott. "Start-Up Chile: April 2012." Harvard Business School Case 812-158, May 2012.
  104. Tad O'Malley: December 2004

    Tad O'Malley, a second-year student at Harvard Business School, must choose among three offers from private equity firms. Each firm presents a unique combination of history, culture, and compensation. Traces Tad's strategy in obtaining these offers and lets students decide which he should accept.

    Keywords: Private Equity; Compensation and Benefits; Job Offer; Negotiation Tactics; Organizational Culture; Personal Development and Career;

    Citation:

    Hardymon, G. Felda, Josh Lerner, Ann Leamon, and Sean Klimczak. "Tad O'Malley: December 2004." Harvard Business School Case 806-024, November 2005. (Revised November 2007.)
  105. Tad O'Malley: June 2005

    Tad O'Malley, a new associate at Empire Investment Group, a top-tier leveraged buyout firm, must evaluate three different deals and recommend which should receive additional resources for further investigation. He must consider the specifics of each company and each deal as well as the resources or restrictions of the firm's offices that would handle the project.

    Keywords: Negotiation Deal; Resource Allocation; Private Equity; Projects; Management Analysis, Tools, and Techniques; Performance Evaluation; Leveraged Buyouts;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Tad O'Malley: June 2005." Harvard Business School Case 806-078, February 2006. (Revised September 2006.)
  106. Tad O'Malley: The Investment Conundrum

    Tad O'Malley has just started as an associate with Empire Investment Group. He must evaluate three investment opportunities facing the big leveraged buyout firm. All are global, but each pertains to different offices and each deal has different strengths and weaknesses. Which should he recommend to the partners for additional resources and what does a recommendation mean for his career?

    Keywords: Leveraged Buyouts; Decision Choices and Conditions; Private Equity; Investment; Strength and Weakness; Negotiation Deal; Personal Development and Career;

    Citation:

    Hardymon, Felda, Josh Lerner, and Ann Leamon. "Tad O'Malley: The Investment Conundrum." Harvard Business School Case 808-125, February 2008. (Revised May 2008.)
  107. Tympani Board, The

    Mike Tarkington, a partner at Reality Venture Partners, must recommend a course of action to his colleague, Steve Bonhomme. Bonhomme is trying to decide whom he should put on the board of a company that is acquiring one of Reality's portfolio companies. Reality will own a very small portion of the merged entity, which will be headquartered in Finland, and Bonhomme is considering a host of options.

    Keywords: Mergers and Acquisitions; Decision Making; Equity; Venture Capital; Governing and Advisory Boards; Finland; United States;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Tympani Board, The." Harvard Business School Case 803-105, December 2002. (Revised November 2003.)
  108. University Technology Ventures: October 2000

    The founders of University Technology Ventures, a fund of funds designed for university professors, face numerous challenges in raising their first fund. The role, economics, and structure of funds-of-funds are examined in the course of examining the partners' dilemma.

    Keywords: Private Equity; Problems and Challenges; Partners and Partnerships; Financial Services Industry;

    Citation:

    Lerner, Josh. "University Technology Ventures: October 2000." Harvard Business School Case 201-043, November 2000.
  109. Vignette: Alternative Liquidity Options

    The growth of companies that facilitate the sales of unregistered stock, such as that granted to employees of successful but long-private companies, has raised a number of questions among regulators, investors, and company founders. This brief vignette sketches out some of the benefits and drawbacks of alternative methods of liquidity.

    Keywords: Financial Liquidity; Private Equity; Stocks; Business Growth and Maturation; Sales;

    Citation:

    Hardymon, Felda, Josh Lerner, and Ann Leamon. "Vignette: Alternative Liquidity Options." Harvard Business School Case 812-070, October 2011. (Revised December 2011.)
  110. Vignette: The Rebar Dilemma

    Martin Smith, a new associate at an LBO firm, must respond to a problem posed by his boss, based on an historical deal that suddenly came undone. After months of negotiation, his firm's plan to buy a bankrupt competitor of one of its portfolio companies and close it down, thus reducing capacity, was ready for board approval. Recently, not only has the market for the product improved, but management of the target firm has presented a more attractive deal to recapitalize the company. This would have disastrous results for the entire industry by perpetuating an overcapacity problem. Discusses Smith suggestions.

    Keywords: Leveraged Buyouts; Insolvency and Bankruptcy; Competition; Growth and Development Strategy; Business or Company Management;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Vignette: The Rebar Dilemma." Harvard Business School Case 803-091, December 2002. (Revised June 2003.)
  111. Warburg Pincus and emgs: The IPO Decision (B)

    Keywords: Initial Public Offering; Decision Making;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Warburg Pincus and emgs: The IPO Decision (B)." Harvard Business School Supplement 808-046, August 2007. (Revised August 2012.)
  112. Weston Presidio Offshore Capital: Confronting the Fundraising Challenge

    Weston Presidio Capital encounters substantial difficulties while raising its first fund. The incentives and roles of investment advisors ("gatekeepers") pension funds and consultants are explored. The relationship with lead investors is considered.

    Keywords: Private Equity; Financing and Loans; Investment Funds; Markets; Problems and Challenges; Relationships; Motivation and Incentives; Financial Services Industry;

    Citation:

    Lerner, Josh. "Weston Presidio Offshore Capital: Confronting the Fundraising Challenge." Harvard Business School Case 296-055, January 1996. (Revised November 1997.)
  113. Xerox Technology Ventures: January 1997

    Supplements Xerox Technology Ventures: March 1995.

    Keywords: Service Industry; Computer Industry;

    Citation:

    Lerner, Josh. "Xerox Technology Ventures: January 1997." Harvard Business School Case 298-109, February 1998. (Revised April 1998.)
  114. Yale University Investments Office

    Yale University's investment office was responsible for managing its endowment, which totaled nearly $4 billion in June 1995. Yale had developed a rather different approach to endowment management, including substantial investments in "less efficient" equity markets such as private equity, real estate, and "absolute return" investments. The investment office was now considering devoting even more of their assets to these markets.

    Keywords: Assets; Private Equity; Investment; Investment Return; Management; Markets; Strategy; Education Industry;

    Citation:

    Lerner, Josh, and Jay O. Light. "Yale University Investments Office." Harvard Business School Case 296-040, December 1995. (Revised December 1995.)
  115. Yale University Investments Office: July 2000

    David Swensen, chief investment officer at Yale University, reviews the $10 billion endowment strategy, that places an unusually heavy emphasis on private equity and other illiquid securities. Changing market conditions in July 2000 cause him to rethink historically successful approaches.

    Keywords: Private Equity; Financial Liquidity; Investment; Strategy; Education Industry;

    Citation:

    Lerner, Josh. "Yale University Investments Office: July 2000." Harvard Business School Case 201-048, November 2000. (Revised March 2001.)
  116. Yale University Investments Office: November 1997

    David Swensen, chief investment officer at Yale University, reviews the $6 billion endowment strategy, which places an unusually heavy emphasis on private equity and other illiquid securities. Changing market conditions in November 1997 cause him to rethink historically successful approaches. A rewritten version of an earlier case.

    Keywords: Change; Private Equity; Financial Liquidity; Investment; Marketing Strategy; Strategy; Education Industry;

    Citation:

    Lerner, Josh. "Yale University Investments Office: November 1997." Harvard Business School Case 298-077, December 1997. (Revised September 1998.)
  117. Yale University Investments Office: August 2006

    The Yale Investments Office must decide whether to continue to allocate the bulk of the university's endowment to illiquid investments--hedge funds, private equity, real estate, and so forth. Considers the risks and benefits of a different asset allocation strategy. Highlights the choice between different subclasses, e.g., between venture capital and leveraged buyout funds.

    Keywords: Higher Education; Asset Management; Financial Management; Financial Strategy; Investment Portfolio; Risk Management;

    Citation:

    Lerner, Josh. "Yale University Investments Office: August 2006." Harvard Business School Case 807-073, January 2007. (Revised March 2011.)
  118. Yale University Investments Office: June 2003

    The Yale Investments Office must decide whether to continue to allocate the bulk of the university's endowment to illiquid investments--hedge funds, private equity, real estate, and so forth. Considers the risks and benefits of a different asset allocation strategy. Highlights the choice between different subclasses, e.g., between venture capital and leveraged buyout funds.

    Keywords: Leveraged Buyouts; Assets; Venture Capital; Private Equity; Investment Funds; Resource Allocation; Partners and Partnerships; Risk and Uncertainty; Strategy; Education Industry;

    Citation:

    Lerner, Josh. "Yale University Investments Office: June 2003." Harvard Business School Case 204-055, September 2003. (Revised March 2004.)

Class Notes

  1. Best Practices: Decision Making Among Venture Capital Firms

    Describes investment decision-making processes, based on interviews with 56% of the top 38 venture capital firms in the country. Discusses some implications for the future growth of the industry.

    Keywords: Decision Making; Venture Capital; Investment; Industry Growth;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Best Practices: Decision Making Among Venture Capital Firms." Harvard Business School Background Note 804-176, May 2004. (Revised October 2007.)
  2. Between a Rock and a Hard Place: Valuation and Distribution in Private Equity

    Introduces the issues attendant to valuing privately held portfolios and distributing thinly traded stock. Although they have existed since the beginning of the formal venture capital industry, they have received increasing amounts of attention as the money invested in private equity has grown. Presents the perspectives of the many participants in the industry.

    Keywords: Venture Capital; Private Equity; Stocks; Investment Portfolio; Valuation; Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Between a Rock and a Hard Place: Valuation and Distribution in Private Equity." Harvard Business School Background Note 803-161, February 2003. (Revised March 2011.)
  3. Information Sources About Private Equity

    Provides an overview of key sources of information.

    Keywords: Private Equity;

    Citation:

    Lerner, Josh. "Information Sources About Private Equity." Harvard Business School Background Note 295-066, December 1994. (Revised November 1997.)
  4. An Introduction to Patents and Trade Secrets

    Provides an overview of patent and trade secret protection. Also discusses the legal processes through which intellectual property is protected and litigated.

    Keywords: Patents; Intellectual Property;

    Citation:

    Lerner, Josh. "An Introduction to Patents and Trade Secrets." Harvard Business School Background Note 295-062, November 1994. (Revised January 2006.)
  5. Note on Corporate Venture Capital, A

    Provides an overview of corporate venture investment.

    Keywords: Venture Capital; Business Startups; Corporate Entrepreneurship; Financial Services Industry;

    Citation:

    Lerner, Josh. "Note on Corporate Venture Capital, A." Harvard Business School Background Note 201-036, September 2000. (Revised March 2001.)
  6. A Note on Distribution of Venture Investments

    Venture capitalists typically exit investments by distributing shares to investors. These transfers pose challenges for these investors. Predictions and evidence about the behavior of stock prices of firms around the time of these distributions are presented.

    Keywords: Forecasting and Prediction; Venture Capital; Stocks; Investment; Price;

    Citation:

    Lerner, Josh. "A Note on Distribution of Venture Investments." Harvard Business School Background Note 295-095, January 1995.
  7. A Note on European Private Equity

    This note provides an overview of private equity in Europe as of mid-2010.

    Keywords: Private Equity; Investment; Europe;

    Citation:

    Lerner, Josh, and Ann Leamon. "A Note on European Private Equity." Harvard Business School Background Note 811-103, May 2011. (Revised May 2011.)
  8. A Note on Limited Partner Advisory Boards

    This note explores the limited partner advisory boards. Based on interviews with seven experienced limited partners who serve on a number of different advisory boards, it presents the roles of the advisory board, the ways it can influence the general partner, and the reasons for limited partners to serve on them. It also contrasts the findings of this survey with a paper on the performance differential between university endowments and other institutional investors and hypothesizes the reasons behind it.

    Keywords: Corporate Governance; Governing and Advisory Boards; Partners and Partnerships; Power and Influence;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "A Note on Limited Partner Advisory Boards." Harvard Business School Background Note 808-169, June 2008.
  9. A Note on Private Equity in Developing Countries

    This note provides an overview of private equity in emerging markets as of late 2009.

    Keywords: Development Economics; Developing Countries and Economies; Private Equity; Investment; Emerging Markets;

    Citation:

    Lerner, Josh, Ann Leamon, and Abishai Vase. "A Note on Private Equity in Developing Countries." Harvard Business School Background Note 811-102, May 2011. (Revised May 2011.)
  10. Note on Private Equity Information Sources

    Provides an overview of key information sources about venture capital and private equity.

    Keywords: Venture Capital; Private Equity; Investment; Knowledge Acquisition;

    Citation:

    Lerner, Josh, and Ann Leamon. "Note on Private Equity Information Sources." Harvard Business School Background Note 299-018, September 1998. (Revised May 2011.)
  11. Note on Private Equity Partnership Agreements

    Venture capital by necessity is a long-run investment. Consequently, since the mid-1960s virtually all venture financing has been raised through private partnerships with a ten-year or longer life span. To govern these investments, complex contracts have sprung up between venture capitalists and limited partners. These contracts provide an insight into the complex challenge of raising and managing a venture capital fund.

    Keywords: Venture Capital; Financing and Loans; Investment; Governance; Contracts; Partners and Partnerships;

    Citation:

    Lerner, Josh. "Note on Private Equity Partnership Agreements." Harvard Business School Background Note 294-084, January 1994. (Revised April 2011.)
  12. Note on Private Equity Securities, A

    Provides an overview of the primary securities used in private equity, their structures, and the economic motivation behind their designs.

    Keywords: Design; Private Equity; Debt Securities; Industry Structures; Motivation and Incentives;

    Citation:

    Hardymon, G. Felda, and Josh Lerner. "Note on Private Equity Securities, A." Harvard Business School Background Note 200-027, December 1999. (Revised November 2001.)
  13. A Note on the Initial Public Offering Process

    Provides an overview of the going public process.

    Keywords: Initial Public Offering; Going Public;

    Citation:

    Lerner, Josh. "A Note on the Initial Public Offering Process." Harvard Business School Background Note 200-018, October 1999. (Revised July 2007.)
  14. Note on the Private Equity Fundraising

    Provides an overview of raising venture capital and private equity funds.

    Keywords: Venture Capital; Private Equity; Investment Funds;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Note on the Private Equity Fundraising." Harvard Business School Background Note 201-042, September 2000. (Revised April 2011.)
  15. A Note on the Venture Capital Industry

    The history of the venture capital industry is reviewed, and the key institutional features described.

    Keywords: Venture Capital;

    Citation:

    Gompers, Paul A., and Josh Lerner. "A Note on the Venture Capital Industry." Harvard Business School Background Note 295-065, November 1994. (Revised July 2001.)
  16. Note on the Venture Leasing Industry, A

    Provides an overview of venture leasing, an innovative financing mechanism that resembles both venture equity investments and bank lending.

    Keywords: Finance;

    Citation:

    Lerner, Josh. "Note on the Venture Leasing Industry, A." Harvard Business School Background Note 294-069, January 1994. (Revised November 2001.)
  17. Note on Valuation in Private Equity Settings, A

    This note discusses several ways in which venture-backed firms can be valued, including comparables, net present value, decision-tree analysis, and the "venture capital method."

    Keywords: Entrepreneurship; Venture Capital; Private Equity; Investment; Valuation;

    Citation:

    Lerner, Josh, and John Willinge. "Note on Valuation in Private Equity Settings, A." Harvard Business School Background Note 297-050, October 1996. (Revised March 2011.)
  18. Technology Transfer at U.S. Universities

    Technology transfer from U.S. universities to industry has increased dramatically in the last 25 years. Reviews the history of technology transfer with particular emphasis on the Bayh-Dole Act of 1980. It then examines how universities responded to Bayh-Dole, the growth of technology transfer offices, and compares how three different universities (MIT, Stanford, and Harvard) approach technology transfer. Provides an overview of the technology transfer process and issues around current practices.

    Keywords: Higher Education; Technology; Laws and Statutes; Education Industry; Technology Industry; United States;

    Citation:

    Hamermesh, Richard G., Josh Lerner, and David Kiron. "Technology Transfer at U.S. Universities." Harvard Business School Background Note 807-124, January 2007. (Revised June 2007.)
  19. U.S. Universities and Technology Transfer

    Technology transfer from U.S. universities to industry has increased dramatically in the last 25 years. Reviews the history of technology transfer with particular emphasis on the Bayh-Dole Act of 1980. It then examines how universities responded to Bayh-Dole, the growth of technology transfer offices, and compares how three different universities (MIT, Stanford, and Harvard) approach technology transfer. Provides an overview of the technology transfer process and issues around current practices.

    Keywords: Higher Education; Technology; Laws and Statutes; Education Industry; Technology Industry; United States;

    Citation:

    Hamermesh, Richard G., Josh Lerner, and Phillip Andrews. "U.S. Universities and Technology Transfer." Harvard Business School Background Note 812-016, August 2011. (Revised September 2011.)
  20. VCPE Strategy Vignettes I

    These three vignettes present various issues around the strategy and management of venture capital and private equity firms. In one, the general partners must decide whether to invest in an intriguing opportunity that lies outside the firm's carefully developed investment strategy; in the second, a new associate must decide whether or not to keep a promising but under-performing investment in the portfolio and in the third, a minority investor in a Chinese company considers removing a politically connected but ineffective controller.

    Keywords: Venture Capital; Private Equity; Financial Strategy; Projects; Decision Choices and Conditions; Partners and Partnerships; Opportunities; Investment Portfolio; Business or Company Management; China;

    Citation:

    Lerner, Josh, G. Felda Hardymon, Matthew Rhodes-Kropf, Ann Leamon, and Lisa Strope. "VCPE Strategy Vignettes I." Harvard Business School Compilation 811-043, December 2010.
  21. VCPE Strategy Vignettes II

    These three vignettes present various issues around the strategy and management of venture capital and private equity firms. In one, a senior partner must decide how to manage an over-extended colleague and how to reduce the risk of the firm's portfolio; the second examines the problem of dividing stock among founders and the last summarizes the experience of Simmons Bedding, a US company that declared bankruptcy after 25 years of rotating private equity ownership.

    Keywords: Venture Capital; Private Equity; Cost vs Benefits; Insolvency and Bankruptcy; Investment Portfolio; Ownership; Partners and Partnerships; Risk Management; Stocks; Problems and Challenges; United States;

    Citation:

    Lerner, Josh, G. Felda Hardymon, Matthew Rhodes-Kropf, Ann Leamon, and Lisa Strope. "VCPE Strategy Vignettes II." Harvard Business School Compilation 811-054, December 2010.
  22. VCPE Strategy Vignettes: 2012

    This compilation of five vignettes depicts common challenges confronting venture capital and leveraged buyout groups. They range from when to deviate from a strategy and how to manage an inept but well-connected executive to equity splits among founders and whether to invest more money in a promising but struggling company. The final vignette summarizes the Simmons Bedding bankruptcy saga.

    Keywords: Strategy;

    Citation:

    Lerner, Josh, Felda Hardymon, Matthew Rhodes-Kropf, Ann Leamon, and Lisa Strope. "VCPE Strategy Vignettes: 2012." Harvard Business School Compilation 812-073, November 2011.
  23. Venture Capital and Private Equity: A Course Overview

    Citation:

    Lerner, Josh. "Venture Capital and Private Equity: A Course Overview." Harvard Business School Working Paper, No. 98-042, November 1997.
  24. Venture Capital and Private Equity: Course Overview

    Provides an overview of the Venture Capital and Private Equity modules.

    Keywords: Venture Capital; Private Equity;

    Citation:

    Lerner, Josh. "Venture Capital and Private Equity: Course Overview." Harvard Business School Background Note 297-045, October 1996. (Revised November 1997.)
  25. Venture Capital and Private Equity: Module I

    Provides an overview of a module that focuses on how private equity funds are raised and structured.

    Keywords: Venture Capital; Private Equity; Investment Funds;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Venture Capital and Private Equity: Module I." Harvard Business School Module Note 297-040, October 1996. (Revised April 2011.)
  26. Venture Capital and Private Equity: Module II

    Provides an overview of a module that focuses on the interaction between private equity investors and the firms they finance.

    Keywords: Business Ventures; Venture Capital; Private Equity; Financing and Loans; Investment; Business and Stakeholder Relations;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Venture Capital and Private Equity: Module II." Harvard Business School Module Note 297-041, October 1996. (Revised May 2011.)
  27. Venture Capital and Private Equity: Module III

    Provides an overview of a module that focuses on existing venture capital and other private equity investments.

    Keywords: Venture Capital; Private Equity; Investment;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Venture Capital and Private Equity: Module III." Harvard Business School Module Note 297-042, October 1996. (Revised April 2011.)
  28. Venture Capital and Private Equity: Module IV

    Provides an overview of a module that focuses on the adaptation of the private equity model to corporate and nonprofit settings.

    Keywords: Venture Capital; Private Equity; Investment; Nonprofit Organizations; Adaptation;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Venture Capital and Private Equity: Module IV." Harvard Business School Module Note 297-043, October 1996. (Revised April 2011.)

Teaching Notes

  1. Aberlyn Capital Management TN

    Teaching Note for (9-294-083).

    Keywords: Biotechnology Industry; Financial Services Industry;

    Citation:

    Lerner, Josh. "Aberlyn Capital Management TN." Harvard Business School Teaching Note 295-134, April 1995. (Revised April 1999.)
  2. Repligen Corporation: January 1992 TN

    Teaching Note for (9-294-082).

    Citation:

    Lerner, Josh. "Repligen Corporation: January 1992 TN." Harvard Business School Teaching Note 295-137, April 1995.
  3. EMC Corporation: Response to Shareholder Litigation (Case Series) TN

    Teaching Note for (9-294-070) and (9-294-071).

    Citation:

    Lerner, Josh. "EMC Corporation: Response to Shareholder Litigation (Case Series) TN." Harvard Business School Teaching Note 295-138, April 1995.
  4. Scripps Research Institute, The: (Case Series) TN

    Citation:

    Lerner, Josh. "Scripps Research Institute, The: (Case Series) TN." Harvard Business School Teaching Note 295-139, April 1995.
  5. Yale University Investments Office and Yale University Investments Office: November 1997 (TN)

    Teaching Note for (9-296-040) and (9-298-077).

    Citation:

    Lerner, Josh. "Yale University Investments Office and Yale University Investments Office: November 1997 (TN)." Harvard Business School Teaching Note 298-124, March 1998.
  6. Acme Investment Trust TN

    Teaching Note for (9-296-042).

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh. "Acme Investment Trust TN." Harvard Business School Teaching Note 298-130, March 1998.
  7. FOX Venture Partners TN

    Teaching Note for (9-296-041).

    Citation:

    Lerner, Josh. "FOX Venture Partners TN." Harvard Business School Teaching Note 298-131, March 1998.
  8. Schroder Ventures: Launch of the Euro Fund TN

    Keywords: Currency; European Union;

    Citation:

    Lerner, Josh. "Schroder Ventures: Launch of the Euro Fund TN." Harvard Business School Teaching Note 298-137, April 1998.
  9. ARCH Venture Partners: November 1993 TN

    Teaching Note for (9-295-105).

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh. "ARCH Venture Partners: November 1993 TN." Harvard Business School Teaching Note 298-138, April 1998.
  10. RogersCasey Alternative Investments: Innovative Response to the Distribution Challenge TN

    Teaching Note for (9-296-024).

    Keywords: Distribution; Investment;

    Citation:

    Lerner, Josh. "RogersCasey Alternative Investments: Innovative Response to the Distribution Challenge TN." Harvard Business School Teaching Note 298-151, April 1998. (Revised July 1998.)
  11. Xerox Technology Ventures TN

    Teaching Note for (9-295-127) and (9-298-109).

    Keywords: Service Industry; Computer Industry;

    Citation:

    Lerner, Josh. "Xerox Technology Ventures TN." Harvard Business School Teaching Note 298-152, April 1998.
  12. GO Corporaiton TN

    Teaching Note for (9-297-021).

    Citation:

    Lerner, Josh. "GO Corporaiton TN." Harvard Business School Teaching Note 298-153, April 1998.
  13. Weston Presidio Offshore Capital: Confronting the Fundraising Challenge TN

    Teaching Note for (9-296-055).

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh. "Weston Presidio Offshore Capital: Confronting the Fundraising Challenge TN." Harvard Business School Teaching Note 298-154, May 1998.
  14. European Association of Security Dealers TN, The

    Keywords: Europe;

    Citation:

    Lerner, Josh. "European Association of Security Dealers TN, The." Harvard Business School Teaching Note 298-158, May 1998.
  15. Apex Investment Partners (A) and (B), Teaching Note

    Teaching Note for (9-296-028) and (9-296-029).

    Keywords: Financial Services Industry; Telecommunications Industry;

    Citation:

    Lerner, Josh. "Apex Investment Partners (A) and (B), Teaching Note." Harvard Business School Teaching Note 298-160, May 1998.
  16. Northeast Ventures: January 1996 TN

    Teaching Note for (9-296-093).

    Keywords: Minnesota;

    Citation:

    Lerner, Josh. "Northeast Ventures: January 1996 TN." Harvard Business School Teaching Note 298-161, May 1998.
  17. Fojtasek Companies and Heritage Partners:March 1995 TN ,The

    Teaching Note for (9-297-046).

    Citation:

    Lerner, Josh. "Fojtasek Companies and Heritage Partners:March 1995 TN ,The." Harvard Business School Teaching Note 298-162, May 1998.
  18. BCI Growth III TN

    Teaching Note for (9-298-093) and (9-298-103).

    Keywords: Finance; Business Growth and Maturation; Financial Services Industry;

    Citation:

    Lerner, Josh. "BCI Growth III TN." Harvard Business School Teaching Note 298-163, May 1998.
  19. Exxel Group: September 1995 TN ,The

    Teaching Note for (9-297-068).

    Keywords: Buenos Aires; United States;

    Citation:

    Lerner, Josh. "Exxel Group: September 1995 TN ,The." Harvard Business School Teaching Note 298-164, May 1998.
  20. Abraaj Capital (TN)

    Keywords: Capital;

    Citation:

    Lerner, Josh. "Abraaj Capital (TN)." Harvard Business School Teaching Note 812-067, November 2011.
  21. Accel Partners' European Launch (TN)

    Teaching Note to (9-803-021).

    Keywords: Financial Services Industry; London; United States;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Accel Partners' European Launch (TN)." Harvard Business School Teaching Note 805-038, August 2004.
  22. Acme Investment Trust: January 2001 (TN)

    Teaching Note to (9-202-055).

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Acme Investment Trust: January 2001 (TN)." Harvard Business School Teaching Note 204-172, June 2004.
  23. Adams Capital Management: March 1999 TN

    Teaching Note for (9-899-256).

    Keywords: Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Adams Capital Management: March 1999 TN." Harvard Business School Teaching Note 802-017, September 2001. (Revised July 2003.)
  24. Adams Capital Management: Fund IV (TN)

    Keywords: Financial Management; Investment;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Adams Capital Management: Fund IV (TN)." Harvard Business School Teaching Note 808-053, December 2007. (Revised April 2009.)
  25. Adams Capital Management: March 2002 (TN)

    Teaching Note to (9-803-143).

    Keywords: Capital;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Adams Capital Management: March 2002 (TN)." Harvard Business School Teaching Note 805-040, August 2004. (Revised February 2005.)
  26. AIT Group plc (TN)

    Teaching Note to (9-803-104).

    Keywords: Financial Services Industry; United States; United Kingdom;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "AIT Group plc (TN)." Harvard Business School Teaching Note 805-037, August 2004.
  27. Altoona State Investment Board: December 2008 (TN)

    Keywords: Investment; Altoona;

    Citation:

    Lerner, Josh, and Ann Leamon. "Altoona State Investment Board: December 2008 (TN)." Harvard Business School Teaching Note 812-075, November 2011.
  28. Angels in British Columbia (TN)

    Keywords: British Columbia;

    Citation:

    Lerner, Josh, and Thomas Hellmann. "Angels in British Columbia (TN)." Harvard Business School Teaching Note 812-080, November 2011.
  29. Apax Partners and Dialog Semiconductor: March 1998 TN

    Teaching Note for (9-201-044).

    Keywords: Financial Services Industry; Semiconductor Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Apax Partners and Dialog Semiconductor: March 1998 TN." Harvard Business School Teaching Note 202-042, August 2001.
  30. Apax Partners and Xerium S.A. (TN)

    Teaching Note to (9-804-084).

    Keywords: Pulp and Paper Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Apax Partners and Xerium S.A. (TN)." Harvard Business School Teaching Note 805-046, September 2004.
  31. Battery Ventures (TN)

    Teaching Note to (9-802-159).

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Battery Ventures (TN)." Harvard Business School Teaching Note 805-036, August 2004.
  32. Between a Rock and a Hard Place: Valuation and Distribution in Private Equity (TN)

    Teaching Note to (9-803-161).

    Keywords: Valuation; Distribution; Private Equity; Venture Capital; Investment Portfolio; Stocks;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Between a Rock and a Hard Place: Valuation and Distribution in Private Equity (TN)." Harvard Business School Teaching Note 805-049, September 2004.
  33. The Blackstone Group's IPO (TN)

    Teaching Note for [808100].

    Keywords: Financial Liquidity; Public Ownership; Initial Public Offering; Business and Stakeholder Relations; Organizational Structure; Financial Services Industry; China;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "The Blackstone Group's IPO (TN)." Harvard Business School Teaching Note 809-036, August 2008.
  34. Brazos Partners and Cheddar's Inc. (TN)

    Teaching Note for [806069].

    Citation:

    Hardymon, Felda, Josh Lerner, and Ann Leamon. "Brazos Partners and Cheddar's Inc. (TN)." Harvard Business School Teaching Note 808-055, January 2008.
  35. Brazos Partners: the CoMark LBO (TN)

    Teaching Note to (9-202-090).

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Brazos Partners: the CoMark LBO (TN)." Harvard Business School Teaching Note 205-020, August 2004.
  36. The Canada Pension Plan Investment Board (TN)

    Keywords: Retirement; Investment Funds; Canada;

    Citation:

    Lerner, Josh, Felda Hardymon, and Ann Leamon. "The Canada Pension Plan Investment Board (TN)." Harvard Business School Teaching Note 812-069, November 2011.
  37. CDC Capital Partners TN

    Teaching Note for (9-801-333).

    Keywords: Financial Services Industry; United Kingdom;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "CDC Capital Partners TN." Harvard Business School Teaching Note 802-014, August 2001.
  38. Chengwei Ventures and the hdt* Investment (TN)

    Teaching Note to (9-802-089).

    Keywords: Financial Services Industry; China;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Chengwei Ventures and the hdt* Investment (TN)." Harvard Business School Teaching Note 805-045, September 2004.
  39. CMGI: Organizational and Market Innovation TN

    Teaching Note for (9-200-064).

    Keywords: Web Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "CMGI: Organizational and Market Innovation TN." Harvard Business School Teaching Note 202-041, August 2001.
  40. Columbia Capital Corporation: Summer 1998 TN

    Teaching Note for (9-899-255).

    Keywords: Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Columbia Capital Corporation: Summer 1998 TN." Harvard Business School Teaching Note 802-016, August 2001.
  41. Endeca Technologies (A) and (B) TN

    Teaching Note to (9-802-141) and (9-802-142).

    Keywords: Information Technology Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Endeca Technologies (A) and (B) TN." Harvard Business School Teaching Note 805-044, September 2004.
  42. Exxel Group, The: March 2001 (TN)

    Teaching Note to (9-202-053).

    Keywords: Latin America;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Exxel Group, The: March 2001 (TN)." Harvard Business School Teaching Note 205-022, September 2004.
  43. Francisco Partners TN

    Teaching Note for (9-200-063).

    Keywords: Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Francisco Partners TN." Harvard Business School Teaching Note 202-023, August 2001.
  44. Gobi Partners: Raising Fund II (TN)

    Teaching Note for [808052].

    Keywords: Valuation; Venture Capital; Financing and Loans; Partners and Partnerships; Financial Services Industry; China;

    Citation:

    Lerner, Josh, Felda Hardymon, and Ann Leamon. "Gobi Partners: Raising Fund II (TN)." Harvard Business School Teaching Note 808-052, January 2008.
  45. Gold Hill Venture Lending (TN)

    Teaching Note to (9-804-083).

    Keywords: Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Gold Hill Venture Lending (TN)." Harvard Business School Teaching Note 805-034, August 2004.
  46. Grove Street Advisors (TN)

    Teaching Note to (9-804-050).

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Grove Street Advisors (TN)." Harvard Business School Teaching Note 805-035, August 2004.
  47. Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market (TN)

    Keywords: Growth and Development Strategy;

    Citation:

    Lerner, Josh. "Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market (TN)." Harvard Business School Teaching Note 812-068, November 2011.
  48. ImmuLogic Pharmaceutical Corporation (Series) TN

    Teaching Note for (9-293-066--071) and (9-293-087).

    Keywords: Pharmaceutical Industry;

    Citation:

    Lerner, Josh. "ImmuLogic Pharmaceutical Corporation (Series) TN." Harvard Business School Teaching Note 293-118, March 1993. (Revised May 1998.)
  49. In-Q-Tel (TN)

    Teaching Note to (9-804-146).

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "In-Q-Tel (TN)." Harvard Business School Teaching Note 805-047, September 2004.
  50. Intel 64 Fund TN

    Teaching Note for (9-800-351).

    Keywords: Computer Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Intel 64 Fund TN." Harvard Business School Teaching Note 802-026, August 2001.
  51. Investitori Associati: Exiting the Savio LBO (A) and (B) TN

    Teaching Note for (9-299-048) and (9-299-106).

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Investitori Associati: Exiting the Savio LBO (A) and (B) TN." Harvard Business School Teaching Note 202-039, August 2001.
  52. Iris Running Crane: December 2009 (TN)

    Citation:

    Lerner, Josh, Matthew Rhodes-Kropf, and Ann Leamon. "Iris Running Crane: December 2009 (TN)." Harvard Business School Teaching Note 812-087, December 2011.
  53. Joe Casey: January 2000 TN

    Teaching Note for (9-801-155).

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Joe Casey: January 2000 TN." Harvard Business School Teaching Note 802-027, August 2001.
  54. Lion Capital and the Blackstone Group: The Orangina Deal (TN)

    Teaching Note for [807005].

    Keywords: Private Equity; Bids and Bidding; Negotiation Deal; Valuation; Financial Services Industry; Food and Beverage Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Lion Capital and the Blackstone Group: The Orangina Deal (TN)." Harvard Business School Teaching Note 808-056, May 2008.
  55. Martin Smith: May 2000 TN

    Teaching Note for (9-200-046).

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Martin Smith: May 2000 TN." Harvard Business School Teaching Note 202-021, August 2001. (Revised August 2003.)
  56. Martin Smith: January 2002 (TN)

    Teaching Note to (9-298-076).

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Martin Smith: January 2002 (TN)." Harvard Business School Teaching Note 204-095, October 2003.
  57. Martin Smith: May 2002 (TN)

    Teaching Note to (9-802-160).

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Martin Smith: May 2002 (TN)." Harvard Business School Teaching Note 804-067, November 2003. (Revised March 2005.)
  58. Messer Griesheim (A) (Abridged) and (B) (TN)

    Teaching Note for 813-018 and 809-057

    Keywords: private equity; venture capital; Private Equity; Venture Capital; Energy; Family Ownership; Energy Industry; Europe;

    Citation:

    Lerner, Josh, and Eva Lutz. "Messer Griesheim (A) (Abridged) and (B) (TN)." Harvard Business School Teaching Note 813-051, August 2012.
  59. Messer Griesheim (TN) (A) & (B)

    Teaching Note for [809056] and [809057].

    Keywords: Energy Industry; Europe;

    Citation:

    Lerner, Josh, Ann-Kristin Achleitner, and Eva Lutz. "Messer Griesheim (TN) (A) & (B)." Harvard Business School Teaching Note 810-089, January 2010.
  60. Metapath Software: September 1997 TN

    Teaching Note for (9-899-160).

    Keywords: Technology Industry;

    Citation:

    Hardymon, G. Felda, and Josh Lerner. "Metapath Software: September 1997 TN." Harvard Business School Teaching Note 802-051, September 2001. (Revised January 2008.)
  61. Montagu Private Equity (A) and (B) TN

    Teaching Note to (9-804-051) and (9-804-151).

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Montagu Private Equity (A) and (B) TN." Harvard Business School Teaching Note 805-039, September 2004.
  62. Motilal Oswal Financial Services Ltd.: An IPO in India (TN)

    Teaching Note for [807095].

    Keywords: Private Equity; Initial Public Offering; Revenue; Valuation; Going Public; Emerging Markets; Investment; Financial Services Industry; India;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Motilal Oswal Financial Services Ltd.: An IPO in India (TN)." Harvard Business School Teaching Note 809-018, March 2009.
  63. New Business Investment Company: October 1997 TN

    Teaching Note for (9-299-025).

    Keywords: Japan;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "New Business Investment Company: October 1997 TN." Harvard Business School Teaching Note 202-040, August 2001.
  64. Pawson Foundation: August 2006 (TN)

    Teaching Note for [806042].

    Keywords: Venture Capital; Budgets and Budgeting; Investment Funds;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Pawson Foundation: August 2006 (TN)." Harvard Business School Teaching Note 809-016, August 2008.
  65. Securior Wireless Networks: February 1996 TN

    Teaching Note for (9-899-134).

    Keywords: Technology Industry; United Kingdom; United States;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Securior Wireless Networks: February 1996 TN." Harvard Business School Teaching Note 802-018, August 2001.
  66. Tad O'Malley: December 2004 (TN)

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Tad O'Malley: December 2004 (TN)." Harvard Business School Teaching Note 808-049, December 2007.
  67. Tad O'Malley: The Investment Conundrum (TN)

    Teaching Note for [808125].

    Keywords: Investment; Opportunities; Leveraged Buyouts; Personal Development and Career; Resource Allocation;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Tad O'Malley: The Investment Conundrum (TN)." Harvard Business School Teaching Note 809-044, August 2008.
  68. 3i Group plc (TN)

    Teaching Note to (9-803-020).

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "3i Group plc (TN)." Harvard Business School Teaching Note 805-048, September 2004.
  69. 3i Group plc: May 2006 (TN)

    Teaching Note for [807006].

    Keywords: Financial Services Industry;

    Citation:

    Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "3i Group plc: May 2006 (TN)." Harvard Business School Teaching Note 809-013, July 2008.
  70. University Technology Ventures: October 2000 TN

    Teaching Note for (9-201-043).

    Keywords: Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "University Technology Ventures: October 2000 TN." Harvard Business School Teaching Note 202-038, August 2001.
  71. Venture Capital Case Vignettes TN

    Teaching Note for (9-801-408).

    Keywords: Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Venture Capital Case Vignettes TN." Harvard Business School Teaching Note 802-052, August 2001.
  72. Village Ventures (TN)

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Village Ventures (TN)." Harvard Business School Teaching Note 808-010, December 2007.
  73. Warburg Pincus and emgs: The IPO Decision (TN) (A) and (B)

    Teaching Note for [807092] and [808046].

    Keywords: Initial Public Offering; Decision Making; Investment Banking; Financial Services Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Warburg Pincus and emgs: The IPO Decision (TN) (A) and (B)." Harvard Business School Teaching Note 808-057, May 2008.
  74. Yale University Investments Office: July 2000 (TN)

    Teaching Note for (9-201-048). A rewritten version of an earlier teaching note.

    Keywords: Education Industry;

    Citation:

    Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Yale University Investments Office: July 2000 (TN)." Harvard Business School Teaching Note 202-022, August 2001.
  75. Yale University Investments Office: August 2006 (TN)

    Teaching Note for [807073].

    Keywords: Investment Funds; Strategy; Cost vs Benefits; Resource Allocation; Decision Choices and Conditions; Venture Capital;