Innovation in newly public firms: The influence of government grants, venture capital, and private equity

2018 ◽  
Vol 44 (2) ◽  
pp. 248-281 ◽  
Author(s):  
George A Shinkle ◽  
Jo-Ann Suchard
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Jel Classification ◽  
Patent Citations ◽  
Firm Level ◽  
Public Firms ◽  
Government Grants

We investigate the influence of government grants, venture capital (VC), and private equity (PE) funding on innovation in newly public firms. We examine innovation inputs (R&D), innovation outputs (patents), and the quality thereof (patent citations). We contribute to understanding of the mechanisms between government grants and subsequent VC and PE funding and innovation. We find that grants encourage VC funding but not PE funding. Grants and VC/PE funding are generally complements regarding innovation except grants substitute for VC funding on innovation inputs. Furthermore, we observe that the firm-level heterogeneity of VC/PEs significantly influences innovation in portfolio companies. JEL Classification: G24, G32, L53, O31, O38

Antecedents of Stage-wise Investment Preferences of Venture Capital and Private Equity Firms in India: An Empirical Exploration

2021 ◽  
pp. 097265272110229
Author(s):  
Poonam Dugar ◽  
Rakesh Basant
Keyword(s):  
Venture Capital ◽  
Empirical Analysis ◽  
Private Equity ◽  
Early Stage ◽  
Jel Classification ◽  
Specific Investment ◽  
Entrepreneurial Ecosystems ◽  
Firm Type ◽  
Investment Size ◽  
Investment Choices

This article is a maiden attempt at exploring determinants of stage-specific investment choices of Indian venture capital and private equity (VCPE) firms. Analysis of 5,782 VCPE investment deals during 1998–2016 shows that firms’ preferences to invest in various stages (early vs. late) are significantly affected by the characteristics of the VCPE firms, features of the deal, and characteristics of the investee firms. More specifically, experience and ownership (foreign vs. domestic) of VCPE firm, type of deal (syndicated or otherwise), investment size of the deal, and location and industry of the investee firm influence the stage of investment. Detailed empirical analysis shows that younger VCPE firms and those with domestic investors prefer to invest in early stages, presumably because they wish to build a reputation and also leverage their proximity with investee firms to manage high market and technological risks associated with early-stage investments. Syndication is another mechanism used to manage the risks associated with early-stage deals. Investee firms in industries that have lower investment requirements or shorter gestation periods and those located in regions with a mature entrepreneurial ecosystems are more likely to attract early-stage investments. JEL Classification: G24, L26, D81

scholarly journals What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

2016 ◽  
Vol 11 (4) ◽  
pp. 404-425 ◽  
Author(s):  
Harvey S. Rosen ◽  
Alexander J. W. Sappington
Keyword(s):  
Venture Capital ◽  
Hedge Funds ◽  
Private Equity ◽  
The Other ◽  
Government Grants ◽  
The University

This paper examines whether university endowment managers think only in terms of the assets they manage or also take into account background income, that is, the other flows of income to the university. Specifically, we test whether the level and variability of a university's background income (e.g., from tuition and government grants) affect its endowment's allocations to so-called alternative assets, such as hedge funds, private equity, and venture capital. We find that both the probability of investing in alternative assets and the proportion of the portfolio invested in such assets increase with expected background income and decrease with its variability.

The European Venture Capital and Private Equity Country Attractiveness Indices

2009 ◽  
Author(s):  
Alexander Peter Groh ◽  
Heinrich Liechtenstein ◽  
Karsten Lieser
Keyword(s):  
Venture Capital ◽  
Private Equity

Private Equity and Venture Capital Growth and Performance in Emerging Markets

2017 ◽  
Author(s):  
Andrea Maria Accioly Fonseca Minardi ◽  
Adriana Bortoluzzo ◽  
Lucas do Amaral Moreira
Keyword(s):  
Venture Capital ◽  
Emerging Markets ◽  
Private Equity ◽  
Capital Growth ◽  
And Performance

The Influence of Incubator and Accelerator Participation on Nanotechnology Venture Success

2021 ◽  
pp. 104225872110245
Author(s):  
Jennifer L. Woolley ◽  
Nydia MacGregor
Keyword(s):  
Venture Capital ◽  
Empirical Work ◽  
Development Program ◽  
Development Programs ◽  
Government Grants ◽  
Recent Growth ◽  
Using Data

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.

Sign in / Sign up

Export Citation Format

Share Document