scholarly journals Structuring deals and governance after the IPO: Entrepreneurs and venture capitalists in high tech start-ups

2006 ◽  
Vol 49 (4) ◽  
pp. 303-311 ◽  
Author(s):  
David R. Williams ◽  
W. Jack Duncan ◽  
Peter M. Ginter
Keyword(s):  
High Tech ◽  
Venture Capitalists ◽  
Start Ups

When startups exit: comparing strategies in Europe and the USA

2018 ◽  
Vol 39 (3) ◽  
pp. 26-33 ◽  
Author(s):  
Alessia Pisoni ◽  
Alberto Onetti
Keyword(s):  
Early Stage ◽  
High Growth ◽  
High Tech ◽  
Venture Capitalists ◽  
Content Type ◽  
Early Exit ◽  
Start Up ◽  
The Usa ◽  
Local Companies ◽  
Start Ups

Purpose The purpose of this paper is to present an overview of trends toward start-up exits. Exits represent the “end phase” of the start-up process, at least for the founders and the early investors. For high-growth venture-capital-backed companies, exits are often considered the ultimate goal of building a profitable venture. These ventures are intended from the beginning to harvest the financial value created by the business at some point in the future, and return capital to early investors. Design/methodology/approach The authors tracked 5,744 merger and acquisition transactions that have occurred between European and US tech start-ups since 2012. Data are drawn from CrunchBase, the most comprehensive database of high-tech companies and investors with information on the companies and investors around the world. The authors then compared the trends of acquisitions between European and US companies. Findings Results show that US companies are far more inclined to make acquisitions than European ones. Acquirers of start-ups, both from Europe and the US, prefer to buy local companies. However, recently, US companies have started to show more interest in European start-ups. Thus, signaling that the European start-up ecosystem is growing and becoming more attractive for US buyers. Furthermore, results show that start-up exits typically happen within a few years after a company’s establishment. Research limitations/implications The research does not take into consideration the price of the transaction, or the amount of capital invested by venture capitalists in the high-tech start-ups that have been acquired. Further research should address this specific problem by helping European start-ups understand how to plan the exit phase within few years from establishment. Practical implications The results have important implications both for entrepreneurs/managers and policymakers. Early exit appears to be a global trend among start-ups. This suggests that the exit phase should be properly planned to happen in the very early stage of the start-up process. On the other hand, the research also shows that there is still a gap to be filled in the European start-up ecosystems’ ability to produce exits and create new large innovative companies (the so-called “unicorns”). Originality/value To date, there has been a little research about exits for young high-tech ventures. This paper will attempt to shed new light on this so far under-explored issue by specifically analyzing exits as financial strategy for investors and entrepreneurs.

Outside Board Availability and Composition in High Tech Start-Ups

2008 ◽  
Author(s):  
Mirjam Knockaert ◽  
Andy Lockett ◽  
Deniz Ucbasaran
Keyword(s):  
High Tech ◽  
Start Ups

Cold War Armory: Military Contracting in Silicon Valley

2002 ◽  
Vol 3 (2) ◽  
pp. 247-284 ◽  
Author(s):  
Thomas Heinrich
Keyword(s):  
Cold War ◽  
Silicon Valley ◽  
High Tech ◽  
Venture Capitalists ◽  
Military Technology ◽  
Product Lines ◽  
Continuous Innovation ◽  
Microwave Electronics ◽  
Military Contractors ◽  
Hard Times

Silicon Valley is frequently portrayed as a manifestation of postindustrial entrepreneurship, where ingenious inventor-businessmen and venture capitalists forged a dynamic, high-tech economy unencumbered by government's “heavy hand.” Closer examination reveals that government played a major role in launching and sustaining some of the region's core industries through military contracting. Focusing on leading firms in the microwave electronics, missile, satellite, and semiconductor industries, this article argues that demand for customized military technology encouraged contractors to embark on a course of flexible specialization, batch production, and continuous innovation. Thriving throughout much of the Cold War, major military contractors fell on hard times when defense markets started to shrink in the late 1980s, because specialized design and production capabilities were rarely applicable to civilian product lines. But Pentagon funding for research and development helped lay the technological groundwork for a new generation of startups, contributing to Silicon Valley's economic renaissance in the 1990s.

Venture capital and high-tech start-ups

2010 ◽  
Vol 12 (4) ◽  
pp. 261-266 ◽  
Author(s):  
Massimo G. Colombo ◽  
Terttu Luukkonen ◽  
Philippe Mustar ◽  
Mike Wright
Keyword(s):  
Venture Capital ◽  
High Tech ◽  
Start Ups

Artificial intelligence (AI) for tourism: an European-based study on successful AI tourism start-ups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raffaele Filieri ◽  
Elettra D’Amico ◽  
Alessandro Destefanis ◽  
Emilio Paolucci ◽  
Elisabetta Raguseo
Keyword(s):  
Artificial Intelligence ◽  
Language Processing ◽  
Radical Change ◽  
Tourism Industry ◽  
Venture Capitalists ◽  
Content Type ◽  
Travel And Tourism ◽  
Study Experience ◽  
And Mathematics ◽  
Start Ups

Purpose The travel and tourism industry (TTI) could benefit the most from artificial intelligence (AI), which could reshape this industry. This study aims to explore the characteristics of tourism AI start-ups, the AI technological domains financed by Venture Capitalists (VCs), and the phases of the supply chain where the AI domains are in high demand. Design/methodology/approach This study developed a database of the European AI start-ups operating in the TTI from the Crunchbase database (2005–2020). The authors used start-ups as the unit of analysis as they often foster radical change. The authors complemented quantitative and qualitative methods. Findings AI start-ups have been mainly created by male Science, Technology, Engineering and Mathematics graduates between 2015 and 2017. The number of founders and previous study experience in non-start-up companies was positively related to securing a higher amount of funding. European AI start-ups are concentrated in the capital town of major tourism destinations (France, UK and Spain). The AI technological domains that received more funding from VCs were Learning, Communication and Services (i.e. big data, machine learning and natural language processing), indicating a strong interest in AI solutions enabling marketing automation, segmentation and customisation. Furthermore, VC-backed AI solutions focus on the pre-trip and post-trip. Originality/value To the best of the authors’ knowledge, this is the first study focussing on digital entrepreneurship, specifically VC-backed AI start-ups operating in the TTI. The authors apply, for the first time, a mixed-method approach in the study of tourism entrepreneurship.

Sign in / Sign up

Export Citation Format

Share Document