Search results for "Corporate Venture Capital"
showing 8 items of 8 documents
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…
Venture capitalists, investment appraisal and accounting information: a comparative study of the USA, UK, France, Belgium and Holland
2000
The differences between the information used for the pre-investment valuation and the valuation methods used by venture capital investors in five countries (USA, UK, France, Belgium and Holland) are empirically studied. The analysis is based on postal questionnaire surveys of representative samples of senior venture capitalists in each country. Differences are found, which may be attributed to the dominant corporate governance mechanism or the level of development of the venture capital market. Between-country differences persist even after taking into account between-country differences in the relative importance of investment stages and venture capital types. Apparently similar systems an…
Internal Software Startups - A Multiple Case Study on Practices, Methods, and Success Factors
2020
Startups are often seen as drivers of innovation. In an attempt to leverage this potential, larger business organizations have founded internal startups as a subset of internal corporate ventures (ICV). These smaller organizations are intended to be more agile than the parent organization, in order to produce new service and product innovations using their own methods and practices independently of the organizational culture and methods of the parent organization. However, our understanding of ICVs is still lacking in terms of processes and success factors, and especially the more recent internal startups have scarcely been studied thus far. To approach this novel area of research, we take …
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…
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…
Corporate Venture Capital follow-on investments: the role of co-investors
2018
CVC investments allow corporates the option to internalize startups’ knowledge and technologies through follow-on investments. Since acquiring a backed startup is not always a guarantee of success, corporates should consider which are the most appropriate conditions under which it is beneficial to acquire the startup. Under the theoretical lens of Real Option theory, we examine the conditions under which a CVC investment may evolve into different kind of CVC follow-on investments. We suggest that the CVC characteristics that mitigate both endogenous and exogenous uncertainties positively affect the corporate’s decision to acquire a backed startup. In addition, we argue that the presence of …
WHY CORPORATES INVEST IN THE SAME START-UP AN EXPLORATIVE ANALYSIS OF CVC SYNDICATIONS
2016
This study investigates why two or more corporates co-invest in the same start-up syndicating their CVC activities. Based on two strands of literature, the CVC and the alliance, we propose a research framework that explores the possible antecedents of CVC syndications. Particularly, grounded on alliance literature, we look at the CVC syndication by combining two dimensions, relational and technological: the relational dimension describes the competitive or cooperative nature of the relationship between partners of CVC syndications, while the technological one represents the exploitative or explorative technological objectives that corporates could pursue when coinvesting in a start-up. We a…
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…