The role of smart money: What drives venture capital support and interference within biotechnology ventures?

2008 ◽  
Vol 78 (4) ◽  
pp. 397-422 ◽  
Author(s):  
Florian Haagen
Keyword(s):  
Author(s):  
Martin Giraudeau

This chapter is an analysis of the project appraisal procedures in place at American Research and Development Corporation (ARD) between 1946 and 1973, under the management of Georges F. Doriot. It shows the importance of knowledge technologies and administrative procedures in the way the venture capital company dealt with uncertain futures. The origins of these knowledge practices are traced back to Georges F. Doriot’s own views on business and more generally to the pragmatist movement in business administration of which he was a member. The conduct of project appraisal at ARD is then observed directly, and this reveals its reliance on a rich set of knowledge and diagnostic techniques as well as administrative procedures. These observations allow for a specification of the nature and role of imagination in the entrepreneurship and venture capital practices examined here—in particular, its close relationship with organized knowledge.


2021 ◽  
pp. 104225872110245
Author(s):  
Jennifer L. Woolley ◽  
Nydia MacGregor

This study investigates how venture development programs such as private incubators, university incubators, and accelerators influence the success of participating nanotechnology startups. With the recent growth in such programs, empirical work is needed to compare their impact on participants across programs and with nonparticipants. Using data on firm bankruptcies, liquidation, government grants, and venture capital, we find benefits, but the influence of each venture development program varies greatly. We further investigate the influence of program services and resources to clarify program heterogeneity beyond existing typologies. The results clarify the role of these programs and ecosystem intermediaries.


2018 ◽  
pp. 93-116
Author(s):  
Jesse Goldstein

Just as entrepreneurialism can function as a more general subjectivity and orientation to the world that extends beyond the specific individuals at the helm of new businesses, the same is true of venture capital. Venture investors have their own set of disciplinary obligations, or fiduciary responsibilities, whose influence extends far beyond specific investors and agreements, generating a general, pervasive and commonsense understanding of what projects, what futures, and, ultimately, what natures are possible to produce in the first place. In backstage venues such as the Funders Forum, even though there were not always a lot of investors present or money to be invested, there was no shortage of money’s “smarts.” A wide array of strategic consultants took on, experimented with and rehearsed the very distinct intelligence that it takes to be a venture investor. Venture investors were exalted as ‘smart money’ in the context of strategic consultants proving to entrepreneurs, investors, and themselves that they could exhibit these same smarts – that they were smart-without-money. These scripts of smart money portray capital’s abstract and abstracting logic as an unquestionable intelligence, ultimately demanding that all cleantech innovations accept the market’s gravitational force, which works to tether the green spirit to capital.


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