Do Better-Networked Venture Capital Firms Always Enjoy Higher Investment Performance? The Contingent Role of China’s Institutional Changes

2018 ◽  
Vol 55 (4) ◽  
pp. 759-780 ◽  
Author(s):  
Delin Yang ◽  
Xiao Hu ◽  
Banggang Wu ◽  
Zhenzhen Xie
Keyword(s):  
Venture Capital ◽  
Institutional Changes ◽  
Investment Performance ◽  
Venture Capital Firms

Foreign venture capital firms and internationalization of ventures

2020 ◽  
Vol 28 (3) ◽  
pp. 381-399 ◽  
Author(s):  
Heejin Woo
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Linear Models ◽  
Strategic Decisions ◽  
Foreign Markets ◽  
Content Type ◽  
The Us ◽  
Venture Capital Firms ◽  
Logistic Regressions

Purpose The purpose of this study is to examine how foreign venture capital firms affect the internationalization of investee ventures and their performance. The author argues that, as influential stakeholders, foreign venture capital (VC) firms engage in strategic decisions of investee ventures and may positively contribute to ventures’ business in foreign markets. Design/methodology/approach The study examines 551 VC-backed ventures that went public between 2000 and 2014 in the US. Logistic regressions and generalized linear models are used to test hypotheses, and the two-stage approach is used to address a potential endogeneity issue. Findings In the empirical results, the author finds that foreign VC investment is positively associated with the internationalization of ventures in terms of both the likelihood of internationalization and foreign sales intensity. In addition, the author finds that internationalization and foreign sales intensity are positively associated with firm performance when a venture is backed by a foreign VC firm. Originality/value This study makes important theoretical and empirical contributions to the international entrepreneurship literature by highlighting the role of foreign VC investors on internationalization of ventures.

scholarly journals The Performance of Foreign Venture Capital Firms in Emerging Economies: A Study of U.S. Firms in China

2016 ◽  
Vol 11 (11) ◽  
pp. 26
Author(s):  
Xiaodan Wang
Keyword(s):  
Venture Capital ◽  
Emerging Economies ◽  
Host Countries ◽  
Institutional Perspective ◽  
Investment Performance ◽  
Country Comparison ◽  
Venture Capital Firms ◽  
Cross Country ◽  
Investment Experience ◽  
International Venture

<p>Extant research on the international venture capital (VC) firms largely focuses on cross-country comparison; only a limited number of studies have examined the internationalization of VC firms and their strategies in host countries. This study approaches the research topic mainly from an institutional perspective, and intends to understand the performance of foreign VC firms in emerging economies, a topic that has rarely been examined in previous research. Using a sample of U.S. VC firms investing in China, this study finds that U.S. VC firms with more investment experience at home have weaker investment performance in China. The empirical results also show that U.S. VC firms investing in ventures with larger top management team, staging their investments, and syndicating with other U.S. VC firms are likely to achieve better performance in China. Contrary to what was hypothesized, syndicating with Chinese VC firms decreases U.S. VC firms’ investment performance in China.</p>

scholarly journals Information Sharing and Investment Performance in the Venture Capital Network Community: An Empirical Study of Environmental-Social-Governance Start-Ups

2019 ◽  
Vol 16 (6) ◽  
pp. 1023 ◽  
Author(s):  
Chaokai Xue ◽  
Xinghua Dang ◽  
Beibei Shi ◽  
Jing Gu
Keyword(s):  
Venture Capital ◽  
Information Sharing ◽  
Investment Performance ◽  
Network Community ◽  
Social Governance ◽  
Community Information ◽  
Intermediary Role ◽  
Start Ups ◽  
The Relationship

Information sharing plays a significant role in improving investment performance in the venture capital network community, which serves as an important requirement for the venture capital network to expand to the meso-level and promote its healthy development. Given the important role of Environmental-Social-Governance (ESG) start-ups in promoting sustainable development, this paper selects a sample of ESG start-ups in China to explore the relationship between venture capital network community information sharing and investment performance. We also examine the intermediary role of investment capability in this relationship. Empirical results show that venture capital network community information sharing, from both the prospective of breadth and depth, has a significant positive impact on investment performance of ESG start-ups. We also find that the investment capability, such as scouting and coaching, plays a partial intermediary role in affecting investment performance by community information sharing. This research helps to reveal the relationship between venture capital network community information sharing and investment performance. The results provide a theoretical basis and managerial insights for improving investment performance of ESG start-ups.

scholarly journals Moderating Factors in Distant Investment of Corporate Venture Capital

2019 ◽  
Vol 5 (1) ◽  
pp. 19 ◽  
Author(s):  
Shinhyung Kang ◽  
JungTae Hwang
Keyword(s):  
Venture Capital ◽  
Target Selection ◽  
Corporate Venture Capital ◽  
Information Cost ◽  
Business Units ◽  
Moderating Factors ◽  
Corporate Venture ◽  
Venture Capital Firms ◽  
Selection Of

The role of venture capital as mediator and gatekeeper is well acknowledged and geographical barriers for open innovation have been questioned, but venture capital firms’ distant investments have been investigated only rarely. The strategic benefits accrued from corporate venture capital (CVC) investment depend on the selection of target ventures. Prior research, however, overlooked the incurred information cost for identifying a potential target. Considering that innovative ventures often reside in distant locations, this paper aims to investigate what factors alleviate the information cost for CVCs when identifying target ventures in distant locations. We expect a CVC’s target selection in distant locations will be limited to the ventures under a tight appropriability regime, ventures within the same industries as a CVC’s business units, and ventures with pre-existing investors that a CVC has prior ties with. The hypotheses are tested with the data on CVC investments in the U.S. between 2006 and 2013. The results empirically support the hypotheses.

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