Venture Capital Finance: A Security Design Approach Rafael Repullo CEMFI and CEPR Javier Suarez CEMFI and CEPR Working Paper No. 9804 September 1998 We would like to thank Patrick Bolton, Jorge Padilla, Enrique Sentana, and Jean Tirole for useful comments. Financial support from the European Bank for Recon- struction and Development (EBRD) is gratefully acknowledged. (E-mail addresses: repullo@cem….es, suarez@cem….es). CEMFI, Casado del Alisal 5, 28014 Madrid, Spain. Tel: 34 91 4290551, fax: 34 91 4291056, www.cem….es.