Search results for " Venture Capital"
showing 10 items of 22 documents
An analysis of recent research on venture capital networks
2019
Purpose – this paper examines recent trends in venture capital network research. Network analysis is a useful approach for analyzing inter-organizational networks, especially for venture capitalists, which are characterized by plenty of connections. Although important steps ahead have been made, several research questions are still unanswered. Research methodology – this brief review analyses deeply three papers which are representative of the novel scientific literature in this field. Scrutinizing these works, I identify their points of strength and weaknesses, in order to understand how to pave the way for further research. Findings – this paper shows that the study of network weak ties a…
Fostering Dynamic Growth in New Ventures through Venture Capital: Conceptualizing Venture Capital Capabilities
2017
There is ample evidence of the influence of venture capital on the creation and growth of new ventures, yet scant attention has been paid to the heterogeneity of venture capitalists and their capacity to contribute to the dynamic growth of new ventures. This paper aims to contribute to the existing literature by exploring the notion that venture capitalists have beneficial effects on the growth of new ventures when they rely on a set of distinctive skills and processes that we associate with venture capital capabilities. We bridge the venture capital and resource-based view research streams to identify the foundational mechanisms of venture capital capabilities. We develop a set of proposit…
CVC AND INNOVATION PERFORMANCE: THE EFFECT OF TECHNOLOGICAL DISTANCE WITH STARTUPS AND COINVESTORS
2018
Firms are increasingly opening their boundaries by engaging in corporate venture capital (CVC) programs as potential gateway into knowledge and technologies of innovative startups. By investing in promising startups across diverse industries with different technological knowledge from the knowledge base of the investing corporate, CVC programs constitute a vehicle for corporates to both exploit and explore innovation opportunities. We first examine the relationship between more explorative CVC investments portfolio and the innovation performance of the corporate. Then, we argue that when syndicating the CVC investments with a co-investor, the portfolio of syndication partners may affect the…
CORPORATE VENTURE CAPITAL AND THE PROBABILITY TO ACQUIRE THE BACKED START-UP: A REAL OPTION PERSPECTIVE
2017
To sustain their competitive positions, an increasing number of corporates access new knowledge and technologies from emerging start-ups by engaging in Corporate Venture Capital (CVC) investments. CVC investments provide corporates the option to in-source start-ups’ knowledge and technologies through follow-on acquisitions. However acquiring a backed start-up is not always a guarantee of success. Then, corporates should consider which are the most appropriate conditions under which it is beneficial to acquire a CVC backed start-up. Utilizing the theoretical lens of Real Option, we examine the conditions under which a CVC investment may evolve into an acquisition of the backed start-up. We p…
The role of product-based crowdfunding in attracting traditional startup funding
2014
How does disruptive innovation influence the funding decisions of different venture capital investors? An empirical analysis on the role of startups'…
2023
Entrepreneurs present their ideas in a favorable light through compelling communications that may shape the investors' impressions about the value of the startup's technology and its potential to disrupt. Assessing such communications, venture capital (VC) investors get an impression of the startup's technology and shape their willingness to commit resources to it. Since diverse kinds of VC investors pursue alternative investment objectives, they may develop different impressions of the startup's technology and accordingly make different resource commitment decisions. This paper aims to investigate the resource commitment decisions of VC investors when financing startups communicating disru…
Financing Small Businesses: From Venture Capital to Crowdfunding
2017
Abstract Startups and small businesses are facing many challenges in terms of financing their activities. These types of companies do not have the possibility to access capital market or to make IPO or to borrow money from banks like big, mature or well-known companies (who were at their beginnings startups or small businesses). They have to find different sources for financing their ideas/products/services that are in many cases very risky, hazardous or to ambitious. But, fortunately, the financing alternative for these companies have evolved during the last post crisis years. They have possibility to find some investors that are willing to invest in a non-name company by accessing crowdfu…
Why corporates syndicate their investments with a specific partner? An explorative analysis of corporate venture capital co-investments
2016
The 80% of corporates that engage in CVC activities, make these investments with other corporates, recognizing the strategic benefits provided by co-investors. Despite the relevance of this phenomenon, no studies focus on the motivations that drive a corporate to syndicate its investments and most important there are no researches that investigate antecedents that drive a corporate in choosing the partner with whom to syndicate the CVC investments. Thus, the aim of this paper is to study why corporates syndicate their CVC investment with a specific partner. Based on the CVC and the alliance literatures we propose a research framework that considers two main elements characterizing a CVC syn…
Venture Capitalists’ Appraisal of Investment Projects: An Empirical European Study
1997
The Investment appraisal and valuation process of venture capitalists includes Information gathering, the assessment of risk and required return, and the choice of a valuation method. This process is empirically studied in the United Kingdom, the Netherlands, Belgium, and France. The Importance of different information sources is equal in the four countries, except that the French venture capitalists Place more emphasis on personal references and the track record of the entrepreneur. The required return is lowest in the Netherlands and Belgium for every development stage of a company, and highest in the UK. The most widely used valuation method in the UK is the multiplication of past or fu…
Staged Venture Capital Contracting with Ratchets and Liquidation Rights
2011
Abstract This paper uses real options analysis to study later round financing in the presence of two standard venture capital contracting provisions: anti-dilution (ratchet) and liquidation preference. We argue that such provisions can preclude financing of a positive NPV venture in the case of a large follow-on financing relative to firm value. Liquidation preference contracting at multiples greater than one is not feasible in the later round if the financing is small relative to firm value. We highlight an interaction effect between the two provisions: increasing the liquidation multiple can help to avoid dilution and the need for the prior venture capitalist to waive ratchet provisions.