Value-added Activities of Venture Capitals in Entrepreneurial Finance: Evidence from the Growth of Flipkart

2021 ◽  
pp. 097282012199812
Author(s):  
Nirmalkumar Singh Moirangthem ◽  
Barnali Nag
Keyword(s):  
Venture Capital ◽  
Value Added ◽  
Entrepreneurial Finance ◽  
Venture Capital Firms ◽  
Public Offer ◽  
Angel Investors

Entrepreneurial finance varies as per the startup stage, such as bootstrapping, crowdfunding, angel investors, venture capital (VC), banks and initial public offer (IPO). Many times, entrepreneurial finance comes with knowledge, experience, innovation, value, etc., in addition to the fund brought in. Venture capitals are the most common such contributors. This study illustrates some significant value-added activities by venture capital firms operating in India. It explores some evidence from venture capitals such as Tiger Global, Accel Partners and DST Global who fund Flipkart, an Indian e-commerce firm.

OurCrowd: Growing a Crowdfunding Platform in a VC World

2015 ◽  
pp. 1-11
Author(s):  
Sarit Markovich ◽  
Evan Meagher
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Value Added ◽  
High Growth ◽  
International Markets ◽  
Value Proposition ◽  
Different Types ◽  
Incentive Problems ◽  
Venture Capital Firms ◽  
Private Investors

This case features the challenges of a startup in the crowdfunding space in 2015 as its leadership assesses potential sources of growth for the company s future. Founded in Israel in 2012 by a renowned venture capitalist, OurCrowd was a venture capital crowdfunding platform that strove to connect high-growth startups raising capital with accredited private investors from around the world. Its value proposition was to democratize an inefficient market for private equity that had historically been dominated by a small number of highly connected venture capital firms (VCs). The case asks students to put themselves in the shoes of OurCrowd s head of investor community as he prepares for a meeting with the company s board of directors to discuss potential strategies for growth: Should the company partner with the incumbent VCs it initially sought to disrupt, emphasize marketing its Portfolio Reserve fund, strive to provide its investors and investees with higher value-added services, target a broader swath of investors by aggressively marketing the platform in international markets, or attempt to go up-market and pursue increasingly larger deals with later-stage companies? Through assessing these options and discussing this case, students will learn about incentive problems in two-sided markets as well as how different types of crowdfunding platforms create value for users.

How Starting Strategy and Network Structure Shape Problemistic Search: An Examination of Venture Capital Firms

2021 ◽  
pp. 104225872110335
Author(s):  
Jake Duke ◽  
Taha Havakhor ◽  
Rachel Mui ◽  
Owen Parker
Keyword(s):  
Venture Capital ◽  
Network Structure ◽  
Theory Of The Firm ◽  
Behavioral Theory ◽  
Organizational Strategy ◽  
Search Process ◽  
Strategy Research ◽  
Structural Holes ◽  
Starting Point ◽  
Venture Capital Firms

Building on the behavioral theory of the firm, we empirically examine how starting strategies and syndication networks can influence venture capital (VC) firms’ problemistic search. We propose that: (a) depending on a VC’s strategic starting point, that is, the VC’s extent of specialization, the directionality of problemistic search may change to either expanding or contracting search activities; and (b) depending on search direction, structural holes in syndication networks can either impede or facilitate the problemistic search process. In a sample of U.S. VC firms, we find results consistent with our predictions, which have important implications for entrepreneurship and organizational strategy research.

scholarly journals Venture Capital Firms’ Specialization, Differences and Complementarities

2016 ◽  
Vol 11 (7) ◽  
pp. 83 ◽  
Author(s):  
Asif Siddiqui ◽  
Dora Marinova ◽  
Amzad Hossain
Keyword(s):  
Venture Capital ◽  
Investment Decisions ◽  
Organizational Form ◽  
Financial Viability ◽  
Investment Strategies ◽  
Firm Resources ◽  
Market Data ◽  
Venture Capital Firms ◽  
Investment Behaviour

<p>The paper analyses the differences in venture capital (VC) firms, proposes a classification of the firms and<br />empirically investigates their investment and co-investment behaviour. The VC firms are not homogeneous and beside funds they possess a diverse set of nonfinancial resources which they optimize. A classification is developed based on VC firm resources and specialization represented by organizational form and affiliation. Based on Australian market data, we classify the VC firms in three categories, namely strategic, financial and independent using resource based theory, and highlight differences. Then the firms’ specialization is related to their portfolio characteristics to identify and analyse differences and complementarities in terms of investment strategies. The influence of specialization in investment and co-investment strategies is also analysed. This study shows that specialization influences investment decisions and co-investor selection. Implications of such investment practices on resource efficiency, financial viability and transition to sustainability are also discussed.</p>

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