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The study by Kut, Pramborg and Smolarski (2007) provides survey evidence of 142 European funds in their risk management practices in the private equity industry,
The study by Kut, Pramborg and Smolarski (2007) provides survey evidence of 142 European funds in their risk management practices in the private equity industry, and their results suggest that syndication and staged financing are used extensively by VC funds as relevant methods to mitigate adverse selection and moral hazard problems. can you explain why syndication and staged financing can help VC funds to mitigate adverse selection and moral hazard problems?
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