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This paper compares ingle round nancing with staged nancing.The main idea is that di??erent nancing modes will give rise todi??erent information structure. When enough fund is provided atthe outset, it is easier to tell a bad project than a god projectwhile the reverse is true when bare minimum nance is providedat the start. The value of the option to liquidate depends on theinformation structure induced by the nancing mode. We showthat while staged nancing imposes more stringent requirementon the quality of information the lender has, it also allows moreprojects to be nanced.