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1. Define and explain the concept of liquidation preference? 2. Institutional investors, such as endowments, pensions, and insurance companies provide a significant fraction of investment

1. Define and explain the concept of liquidation preference?

2. Institutional investors, such as endowments, pensions, and insurance companies provide a significant fraction of investment capital to VCPE funds. What factors contribute to their choice to make such investments?

3. Provide a brief explanation of "staging" in VCPE investments and explain how "staging" can reduce information and/or incentive problems facing a new venture.

4. Explain the VCPE determinants of monitoring firms.

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