Urban Start-up Districts: Mapping Venture Capital and Start-up Activity Across ZIP Codes

2018 ◽  
Vol 32 (2) ◽  
pp. 99-118 ◽  
Author(s):  
Richard Florida ◽  
Karen M. King
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
The United States ◽  
Urban Neighborhoods ◽  
High Tech ◽  
Urban Theory ◽  
Venture Capital Investment ◽  
Technology Industry ◽  
Start Up ◽  
Start Ups

Previous research has identified the clustering of high-tech industries, entrepreneurial start-ups, and venture capital across metropolitan areas. Using detailed ZIP code data on start-up activity and venture capital investment, this research tests three hypotheses informed by urban theory on the clustering of innovation, entrepreneurship, and high-technology industry: (1) that start-up activity and venture capital investment will concentrate in distinct microclusters within metro areas, (2) that a substantial level of start-up activity and venture capital investment will cluster in dense urban neighborhoods or ZIP codes, and (3) that the clustering of start-ups and venture capital investment will vary by industry or type of technology. The authors find evidence to support all three. Start-up activity and venture capital investment are concentrated in a relatively small number of ZIP codes in the United States, the majority of which are in dense urban neighborhoods, and this clustering varies by industry and type of technology.

Syndication in Venture Capital Investment in India: An Empirical Study

2017 ◽  
Vol 3 (2) ◽  
pp. 81-90 ◽  
Author(s):  
Sarita Mishra ◽  
Dinabandhu Bag
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Control Mechanism ◽  
Fiscal Year ◽  
Venture Capital Investment ◽  
The Past ◽  
Efficient Management ◽  
Common Trend ◽  
Start Up ◽  
Start Ups

Indian economy witnessed high inflow of capital for start-ups in current fiscal year through venture capital (VC) investment. From different Indian VC deals, it is evident that VC investors prefer to invest jointly. In other words, joint investment or co-investment or syndication is a common trend in Indian VC industry. VCs adopt this strategy to minimise their future uncertainties as a part of the control mechanism. In this study, an attempt is made to find out different determinants of this syndication strategy. The samples taken in this study are retrieved from Venture Intelligence database for the period 2005–2014. The data are analysed through linear regression and binomial logistic regression. Two empirical models have been developed. The derived models validate different control variables and deal with specific characteristics to comprehend the rationale of syndication mechanism. The findings of the study indicate that the past experience and the number of industry exposure of a VC in IT and ITES industry are the major predictors for a syndication decision. Subsequently, the precautionary investment attributes like number of investment round, stage funding, etc. draw the interest of potential co-investors in a syndicated deal. Syndication mechanism benefits the VC investors through sharing of risk of investment in a start-up and preparing them for a successful exit. Extant literature supports the results as Indian VC investors prefer to share the risk profile of a start-up business and adopt different risk diversion mechanisms to attract co-investors in the deal. Furthermore, the joint investment by investors drag more funding amount and also create more human capital for efficient management of the investment in VC-backed portfolio.

scholarly journals Measuring the Spillovers of Venture Capital

2020 ◽  
pp. 1-48
Author(s):  
Monika Schnitzer ◽  
Martin Watzinger
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Private Equity ◽  
Knowledge Spillovers ◽  
Fund Raising ◽  
Tax Credits ◽  
Venture Capital Investment ◽  
Start Up ◽  
Established Firms ◽  
Start Ups

This paper shows that venture capital investment in start-ups increases innovation of established companies in technologically related fields due to knowledge spillovers. To address endogeneity issues, we instrument R&D expenditures of established companies with statelevel R&D tax credits (Bloom, Schankerman, and Van Reenen, 2013), and venture capital investment with past fund-raising of private equity buy-out funds (Nanda and Rhodes-Kropf, 2013). Exploring the mechanism, we show that the patents of VC-financed start-ups are on average of higher quality, more novel and less protected by intellectual property rights than those of established firms, leading to significantly larger spillovers. This knowledge transfer between companies is enhanced by mobile start-up inventors.

scholarly journals Trends in innovation and investment development of high-tech enterprises

2019 ◽  
Vol 7 (5) ◽  
pp. 79-92 ◽  
Author(s):  
I. A. Mandych ◽  
A. V. Bykova
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Capital Investment ◽  
Growth Promotion ◽  
International Market ◽  
High Tech ◽  
Venture Capital Investment ◽  
Success Stories ◽  
Venture Investment ◽  
Market State

The article deals with the main prospects and problems of investing in innovative activities of high-tech enterprises. The principles of construction of venture investment and the mechanism of venture financing of a project when creating technological innovation were investigated. The overview of the Russian venture capital market shows the positive dynamics associated with the termination of a significant outflow of funds from the market and the growth in the number of newly created funds. There were also revealed promising areas for the development of the venture capital market and support high-tech enterprises, namely: success stories; low profitability of traditional investment instruments; the growth of activity of state corporations; growth in the number of startups focused on the international market; state support; angel investing growth; promotion of VC and innovations; the emergence of smart industries. Such barriers to the development of venture capital investment as the disunity of the market, the lack of co-investment. There were made conclusions about the prospects of engaging businesses in the processes of research and development of new products, as well as its promotion in promising markets among partners with special competencies, and that human resources are becoming the most important component of the success of high-tech industries.

Problems and Prospects of Development of Venture Capital Institutions in Russia

2021 ◽  
pp. 81-103
Author(s):  
S. S. Glaziev
Keyword(s):  
Venture Capital ◽  
The United States ◽  
Economic Life ◽  
High Tech ◽  
Investment Environment ◽  
Start Up ◽  
Innovative Products ◽  
History Of ◽  
New Ideas ◽  
National Economies

The relevance of the topic of the article is directly due to the increased interest on the part of government agencies, business circles and the scientific and economic community to the problem of stimulating the processes of creation, replication and economic promotion of innovations, and ultimately-the growing objective need of the national economy in a favorable innovation environment. Venture capital plays a role in maintaining the flow of innovative products in the economies of a number of countries around the world. However, venture capital is still not a well — established phenomenon in most national economies, if we consider this phenomenon as a system that is essential for the search and introduction of new ideas and technologies into socio-economic life, and not as scattered precedents for financing young high-risk, but fast-growing and promising innovative companies. Based on these fundamental provisions, the author of the article, first, describes in detail the subject structure of this system, characterizes the interaction between special funds, start-up companies and their final investors-large high-tech industrial corporations, which in many cases forms the innovative mechanism of venture capital. Secondly, it examines the factors, the history of the formation of venture capital, shows its national specifics, place and functions in specific countries of the modern market-capitalist economy, including the United States, the EU states and Japan. Third, it assesses the Russian innovation and investment environment, the possible role in them and the prospects for the development of venture capital institutions in Russia.

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