 In this section, I will tell you how the financial intermediaries can help us in reducing the principal agent problem. So financial intermediaries, I described, are all institutions that work in the chain of finances, banks, insurance companies, mutual fund companies. All these institutions do money in the chain of finances, so we call them financial intermediaries collectively. So financial intermediaries can help us in reducing the pre-rider problem. Who was the pre-rider? Who doesn't buy the information? He observes how smart people are or good investors, how big companies are behaving in the financial market. He observes them and copies them and according to that, we take financial decisions. And what happens by doing this? They are not giving any subscription, they are not paying any payment to buy the information yet they are getting advantage. So to cut down the pre-rider problem and to cut down the moral hazard and to reduce the principal agent problem, financial intermediaries play a very important role. And a very special financial intermediary, we have a type of firms, which tells us how you can overcome all these problems through this firm. Problems are principal agent problem, moral hazard, we have a pre-rider problem. So in that, the particular type of firm, in which all these problems are cut down to a greater extent, that firm is called a venture capital firm. Now the question arises, what is meant by a venture capital firm? Venture capital firms, what do they do? They take resources from their different partners and pool them. For example, there are 6 people or 5 people or 10 people who are interested in doing a certain type of business. They have got their own expertise. For example, if you want to build a software house, then there are some people who are very smart in handling the finance. There are some people who are very smart in handling the finance. And they have little money. And those who can handle the finance have little money. And those who can run marketing campaigns, make logos, do such work. They have little money and they have their own work. So there can be a possibility that all these people, with their different relative expertise, they pool their resources, they pool their money, they pool their efforts. They gather all their resources and establish a firm which is called venture capital firm. And what is happening is that through such firms, you can cut down the principal agent problem or the moral hazard. You can cut down the free rider problem. And how will that happen? It will happen that all the people will establish their own venture and launch a new business as a startup. And what do they do when they are setting up their new venture? So they will put their money, they will pool their resources. So what happened is that you don't need to take much money from the buyer. So what happened now is that since they are pooling their own resources, in such a situation that there is no problem with the principal agent, you don't need to burden anyone else. So they try to keep their own positions of decision making. And the different managing bodies or governing bodies play their own roles. And what happens is that their information is not leaked. And they don't have to keep any extra extra people where the conflict of interest comes and the principal agent problem can be created. And because they are pooling their resources, they are doing their things on their own and they themselves are sitting on the key positions. Key positions, where all the decisions are being made, there will be no moral hazard. And since people are not involved from outside, there is no possibility of being disseminated from outside. So you can cut down the free rider problem to a great extent. So basically, since we have already decided to know each other, most of the people are there. So by doing this, the verification activities or data verification, all these things that you have to incur the cost that you cannot do. And with this particular concept, if we look for the examples all across the world, then we see a number of success stories, particularly in the United States, there are a lot of startups like venture capital firms, established and successful, like thousands of people in the high tech sector. We get to see them in the high tech sector. And there are a lot of venture capital firms that are very much to emerge or to be created. What happened is that in those areas where these startups were born, venture capital firms, we saw in those sections of the USA that there was a lot of job creation, there was a lot of economic growth. And when they created this very competitive environment, overall, on the international level, their competitiveness increased very much. Because of which, you have seen that in the last few years, when we use advanced technology or technological gadgets or information technology, softwares or gadgets are used, we see a significant boom, a significant development. So, we get to see the action of venture capital firms by applying this particular concept. All the major problems we have discussed so far, like the moral hazard, the free rider problem, the principal agent problem, they have tried to overcome these three to venture capital firms.