The passion and the interests in life science venturing

2019 ◽  
Vol 22 (1) ◽  
pp. 175-192
Author(s):  
Alexander Styhre ◽  
Maria Norbäck
Keyword(s):  
Venture Capital ◽  
Rational Expectations ◽  
Career Choices ◽  
Life Science ◽  
Innovation Management ◽  
Meaningful Work ◽  
Economic Security ◽  
Content Type ◽  
Analytical Category ◽  
Start Ups

PurposePassion and interest are the two principal drivers of competitive capitalism, and reconciling the two is conducive to a dynamic and welfare-generating economic system. On the level of the individual, the same categories can be applied to examining, for example, career choices, at times violating propositions regarding rational expectations as some categories of work include lower economic compensation or higher levels of risk than would be attractive to the median job applicant. The purpose of this paper is to examine how venture workers, employees of life, thinly capitalize science ventures, justify their career choices and how they act in order to create economic security for themselves and their families.Design/methodology/approachThe study is based on a qualitative data collection methodology and reports on empirical research material from a study of co-workers at life science start-ups. The sample includes salaried employees working at venture capital-backed start-up companies in the life science sector.FindingsThe study indicates that passionate preferences regarding, for example, meaningful work in collaboration with peers, and the ability to participate in the creation of a new venture, have overshadowed the downside risks and the lower level of economic compensationvis-à-viscomparable work. Such findings indicate that deeply meaningful work is a useful analytical category, and that combinations of the favorable market pricing of skills and experiences, as well as state-funded welfare mechanisms, cushioning some of the market risk that employees are exposed to, will provide opportunities for venture labor, i.e. work done at thinly capitalized firms, such as start-ups,per secontributing to a dynamic industry.Originality/valueThe study contributes to the innovation management literature as it examines the key role of salaried venture workers, i.e. workers that do not hold contracts, granting them the right to compensation when venture capital investors make an exit. In addition, the study also discusses the literature on deeply meaningful work, stressing that this is a useful analytical category.

Blockchain will lead next global tech revolution

2016 ◽  
Keyword(s):  
Venture Capital ◽  
Transaction Costs ◽  
Real Life ◽  
Financial Industry ◽  
Content Type ◽  
Blockchain Technology ◽  
Database Technology ◽  
Start Ups

Subject Blockchain technology in finance. Significance Blockchain is a cryptographically enabled database technology that can make many transactions free of counterparty risks and nearly instantaneous, eliminating transaction costs. It was created and tested with bitcoin, a cryptocurrency. The financial industry is interested in it, given its scale and need for reliability and speed. Impacts Blockchain use could expand beyond cryptocurrencies, with the financial industry leading it towards real-life applications. As the blockchain technology could be disruptive, banks are attempting to influence and direct its development early on. Corporate strategists will be the predominant investors in blockchain start-ups rather than traditional venture capital.

Think human, act digital: activating data-driven orientation in innovative start-ups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Visvizi ◽  
Orlando Troisi ◽  
Mara Grimaldi ◽  
Francesca Loia
Keyword(s):  
Innovation Management ◽  
Strategic Orientation ◽  
Constructivist Grounded Theory ◽  
Data Driven ◽  
Structured Interviews ◽  
Content Type ◽  
Proactive Management ◽  
Start Up ◽  
Innovation Patterns ◽  
Start Ups

PurposeThe study queries the drivers of innovation management in contemporary data-driven organizations/companies. It is argued that data-driven organizations that integrate a strategic orientation grounded in data, human abilities and proactive management are more effective in triggering innovation.Design/methodology/approachResearch reported in this paper employs constructivist grounded theory, Gioia methodology, and the abductive approach. The data collected through semi-structured interviews administered to 20 Italian start-up founders are then examined.FindingsThe paper identifies the key enablers of innovation development in data-driven companies and reveals that data-driven companies may generate different innovation patterns depending on the kind of capabilities activated.Originality/valueThe study provides evidence of how the combination of data-driven culture, skills' enhancement and the promotion of human resources may boost the emergence of innovation.

Human capital, intellectual capital, and government venture capital

2017 ◽  
Vol 6 (3) ◽  
pp. 359-374 ◽  
Author(s):  
Ikenna Uzuegbunam ◽  
Yin-Chi Liao ◽  
Luke Pittaway ◽  
G. Jason Jolley
Keyword(s):  
Venture Capital ◽  
Intellectual Capital ◽  
Ordinary Least Squares ◽  
New Venture ◽  
Least Squares Regression ◽  
Data Set ◽  
Content Type ◽  
Nuanced Understanding ◽  
Start Ups ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of human and intellectual capital on start-ups’ attainment of government venture capital (GVC). It is theorized that as a result of government predisposition toward enhancing knowledge spillover and certifying underinvested start-ups, different types of human and intellectual capital possessed by start-ups will distinctly affect GVC funding. Design/methodology/approach The Kauffman Firm Survey, a panel data set of 4,928 new US firms over a five-year period (2004-2008), serves as the data source. Ordinary least squares regression, coupled with generalized estimating equations to check for robustness, is used to determine the effect of human and intellectual capital on GVC funding. Findings Founders’ educational attainment has a greater impact than their occupational experience in GVC funding. While the number of patents owned by the start-up increases GVC funding, the number of trademarks and copyrights negatively influence GVC funding. Originality/value By distinguishing between different aspects of human and intellectual capital, this study provides a more nuanced understanding of the influence of new venture resources in the context of GVC.

Pandemic will boost US government role in space sector

2020 ◽  
Keyword(s):  
Venture Capital ◽  
Global Economy ◽  
Government Support ◽  
Human Spaceflight ◽  
Content Type ◽  
Space Industry ◽  
Government Role ◽  
The Us ◽  
Us Government ◽  
Start Ups

Subject COVID-19 and the US space industry Significance The COVID-19 lockdown has disrupted operations at NASA, the Space Force and the large, established aerospace contractors, but had a far more serious effect on the start-ups and smaller firms on which investors and the US government have pinned their hopes. Impacts The US space industry’s move towards a market-based model will come under pressure as government support becomes more important. Many small, innovative firms dependent on venture capital are likely to fail as funding dries up in a depressed global economy. Prestige projects, especially US and Chinese human spaceflight programmes, will retain political favour as national morale boosters.

Inter-organizational knowledge transfer through corporate venture capital investment

2015 ◽  
Vol 53 (7) ◽  
pp. 1601-1618 ◽  
Author(s):  
Sang M. Lee ◽  
Taewan Kim ◽  
Seung Hoon Jang
Keyword(s):  
Knowledge Transfer ◽  
Venture Capital ◽  
Longitudinal Design ◽  
Organizational Knowledge ◽  
Corporate Venture Capital ◽  
Content Type ◽  
Knowledge Diversity ◽  
Corporate Venture ◽  
Level Of Knowledge ◽  
Start Ups

Purpose – The purpose of this paper is to investigate the relationship between corporate venture capital (CVC) investment and the level of knowledge transferred from start-ups to corporate investors. It also delineates the conditions under which CVC investment facilitates the knowledge transfer. Design/methodology/approach – A longitudinal design is used to examine annual snapshots of CVC investment and patent citing activities for the period from 1995 to 2005. This paper uses a negative binomial Poisson regression model to test proposed research hypotheses. Findings – The authors found that that there is an inverted U-shaped relationship between the number of CVC investments and the level of knowledge transferred from the start-up. The results of this study also found that knowledge diversity of the investing firm moderates the inverted U-shaped relationship. Originality/value – This research contributes to the search literature by conceptualizing CVC investment as a distant search process for sourcing external knowledge from start-ups. By arguing theoretically and demonstrating empirically the effects of tie strength of CVC structure and technological knowledge diversity on organizational knowledge transfer, this current study extends the previous understanding and applicability of social relations and technological diversity to understand CVC activity.

Multilateral development banks: understanding their impact on start-up development in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carolina Dams ◽  
Virginia Sarria Allende ◽  
María José Murcia
Keyword(s):  
Latin America ◽  
Venture Capital ◽  
Latin American ◽  
International Expansion ◽  
Public Programs ◽  
Data Set ◽  
Multilateral Development Banks ◽  
Content Type ◽  
Development Banks ◽  
Start Ups

Purpose This paper aims to examine the relative performance of multilateral development banks venture capital funds (MDBVCs) compared to that of government-sponsored venture capital funds (GVCs), assessing their impact on invested start-ups. Design/methodology/approach First, the authors survey the literature to understand the performance drivers of public programs designed to foster venture capital (VC). Second, the authors analyze the characteristics of multilateral development banks (MDBs) VC-related efforts. Third, based on their goals, structure, governance and management processes, the authors propose and test the hypothesis that MDBs initiatives outperform comparable public programs, overcoming the main limitations of the latter. Findings The authors find that start-ups funded by MDBVCs outperform GVC-funded start-ups in terms of access to subsequent financing and international expansion. Consistent with previous studies, the authors find that start-ups funded by private VCs show the highest levels of performance. Originality/value The paper features an unstudied actor – i.e. MDBVCs-, and an unstudied region – i.e., Latin America-, using a unique data set of 437 start-ups that received VC investments in 7 Latin American countries during the study period 2000–2018.

Coopetitive dynamics and inter-organizational knowledge flow among venture capital firms

Kybernetes ◽  
2019 ◽  
Vol 49 (1) ◽  
pp. 47-72
Author(s):  
Stavros Sindakis ◽  
Sakshi Aggarwal ◽  
Charles Chen
Keyword(s):  
Knowledge Transfer ◽  
Venture Capital ◽  
New Ventures ◽  
Theoretical Work ◽  
Knowledge Flows ◽  
Venture Capitalists ◽  
Content Type ◽  
Firm Knowledge ◽  
New Business ◽  
Start Ups

Purpose The purpose of this paper is to analyze important theoretical work conducted in the research streams of coopetition dynamics and knowledge flows in the area of start-up entrepreneurship. The authors see in practice that venture capital (VC) firms are a highly essential component of the environment that gives birth to entrepreneurial ventures, helping them to grow profoundly. Interorganizational collaborations facilitate VC firms to be a beneficial partner because except for providing funding, they also possess knowledge-based resources to support the new business. Design/methodology/approach A systematic review of the literature was conducted, using relevant keywords and academic databases. Then, the backward search was implemented to examine the references of the selected papers, and finally, the forward search to explore the citations of the selected papers. After the selection of papers, they were classified according to their content. A thorough search of the extant literature was done in Scopus and Google Scholar using a combination of keywords such as coopetition, knowledge flows, VC firms, interorganizational and inter-firm knowledge dynamics. Findings This paper highlights the capability of venture capitalists and provides insights as to how knowledge transfer and sharing between VC firms affect new venture’s growth and prosperity. Research limitations/implications This paper attempts to provide new perspectives and explore the significance of interorganizational coopetition and knowledge transfer and sharing between VC firms when they take part in the support and development of new ventures (e.g. start-ups). A theoretical model is proposed via the coopetition dynamics and inter-firm knowledge flows in the VC sector framework. Originality/value This paper adds to the existing theoretical knowledge and underlines the topic of interorganizational coopetition and knowledge flows between VC firms. This is the first attempt, on the one hand, to link inter-firm knowledge flows and new venture development, while on the other to examine the dynamics between VC firms and the collective contribution for the growth of start-ups.

scholarly journals Local competence building and international venture capital in low-income countries

2018 ◽  
Vol 25 (3) ◽  
pp. 447-482 ◽  
Author(s):  
Daniel Stefan Hain ◽  
Roman Jurowetzki
Keyword(s):  
Venture Capital ◽  
Low Income ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
High Tech ◽  
Content Type ◽  
Start Ups ◽  
International Venture ◽  
Shed Light

Purpose The purpose of this paper is to shed light on the changing pattern and characteristics of international financial flows in the emerging entrepreneurial ecosystems of Sub-Saharan Africa (SSA), provide a novel taxonomy to classify and analyze them, and discuss how such investments contribute to competence building and sustainable development. Design/methodology/approach In an exploratory study, the authors analyze the characteristics of international venture capital investors and the start-ups receiving funding in Kenya and map their interaction. The authors proceed by developing a novel taxonomy, classifying investors according to their main rationales (for-profit-for-impact), and start-ups according to the locus of needs and markets addressed by the start-up (local-global) and the locus of the start-ups capacity and knowledge (local-global). Findings The authors observe a new type of mainly western investors who support innovative ideas in SSA by identifying and investing in domestically developed technical innovations with the potential to address global market needs. The authors find such innovations to be mainly developed at the intersect of global and local knowledge. Originality/value The authors shed light on the – up to now – under-researched emerging phenomenon of international high-tech investments in SSA, and develop a novel taxonomy of technology investments in low-income countries, guiding further research on the conditions, impact, practical, and policy implications of this new form of finance flows.

Exit strategy decision by venture capital firms in India using fuzzy AHP

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kiran Mehta ◽  
Renuka Sharma ◽  
Vishal Vyas ◽  
Jogeshwarpree Singh Kuckreja
Keyword(s):  
Venture Capital ◽  
Fuzzy Ahp ◽  
Survey Instrument ◽  
Primary Data ◽  
Exit Strategy ◽  
Managerial Implication ◽  
Content Type ◽  
Factors Affecting ◽  
Venture Capital Firms ◽  
Start Ups

Purpose The existing literature on venture capitalists’ (VCs’) exits provides insufficient evidence regarding factors affecting the exit decision. This study aims to identify these factors and examine how VC firms do ranking or prioritize these factors. Design/methodology/approach The study is based on primary data. The qualitative analysis was done to develop the survey instrument. Fuzzy analytical hierarchical process, which is a popular method of multi-criteria decision modeling, is used to identify or rank the determinants of exit strategy by venture capital firms in India. Findings Broadly, eight determinants of exit strategy are ranked by VCs. A total of 33 statements describe these eight determinants. The results are analyzed on the basis of four measures of VCs’ profile, i.e. age of VC firm, number of start-ups in portfolios, type of investment and amount of investment. Research limitations/implications The survey instrument needs to be validated with a larger sample size and other financial backers than VCs. Practical implications The study has direct managerial implication for VC firms as it provides useful information regarding the determinants of exit strategy by VC firms in India. These findings can provide necessary information to other financial backers too, viz., angel investors, banks, non-banking financial institutions and other individual and syndicated set-ups providing funding to start-ups. Originality/value The current research is unique as no prior study has explored the determinants of VCs exit strategy and prioritizing these determinants.

GRAFTING ENTREPRENEURSHIP

2017 ◽  
Vol 4 (23) ◽  
Author(s):  
Manish Kumar Maurya
Keyword(s):  
Venture Capital ◽  
Entrepreneurial Activity ◽  
Mass Layoffs ◽  
Capital Financing ◽  
Start Ups

Nowadays, Organizations especially the start-ups concentrate so much in adding values to the product and services that it hardly adds value to their own employees. Mass layoffs and shutting down businesses are few examples of that.This paper attempts to increase an understanding of a different approach towards entrepreneurship. It basically takes into account the roles venture capital financing play in supporting entrepreneurial activity and an alternative to it by introducing the concept of grafting entrepreneurship and its implications.

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