scholarly journals Assessing the Efficiency of Venture Capital Functioning in the Transforming Economy in UAE and China by a Mathematical Model

SAGE Open ◽  
2022 ◽  
Vol 12 (1) ◽  
pp. 215824402110684
Author(s):  
Husam Wahdan ◽  
Zeng Rui Tian
Keyword(s):  
Mathematical Model ◽  
Venture Capital ◽  
Capital Investment ◽  
Production Efficiency ◽  
Developing Economies ◽  
Industrial Society ◽  
Capital Investments ◽  
Chinese Market ◽  
Venture Capital Investment ◽  
Venture Capital Investments

This article examines the evolution of approaches to the content of venture capital based on the evolution of venture capital and venture capital investment, post-industrial society, institutional theory, and experience of forming the venture capital market in developing economies. Hypotheses of the functioning of venture capital in the transforming economy of the UAE and China are proposed and tested. An economical and mathematical model for assessing the efficiency of venture capital functioning has been developed. It was found that there is a particular relationship between the national characteristics of the country’s venture capital industry and the capital invested in innovative industries, as well as the production efficiency of these industries. Moreover, the attractiveness of venture capital investments somehow increases with investments in other sectors in both countries. Since the Chinese market evolved earlier than UAE, it has the most remarkable characteristics, including higher capital workforce ratios and higher exports of science and technology-intensive products. In addition, the Chinese market has a high level of development and focuses on a sustainable financing cycle than UAE.

Venture Capital Investment in Orthopaedics: Has the Landscape Changed over the Past Two Decades (2000–2019)?

2021 ◽  
pp. 155335062110310
Author(s):  
Thomas B. Cwalina ◽  
Tarun K. Jella ◽  
Alexander J. Acuña ◽  
Linsen T. Samuel ◽  
Atul F. Kamath
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Third Party ◽  
Annual Growth Rate ◽  
Capital Investments ◽  
Compound Annual Growth Rate ◽  
Venture Capital Investment ◽  
The Past ◽  
Dollar Amount ◽  
Venture Capital Investments

Background. Innovations in orthopaedic technologies often require significant funding. Although an increasing trend has been observed for third-party investments in other medical fields, no study has examined the influence of venture capital (VC) funding in orthopaedics. Therefore, this study analyzed trends in VC investments related to the field of orthopaedic surgery, as well as the characteristics of recipients of these investments. Methods. Venture capital investments into orthopaedic-related businesses were reviewed from 2000 to 2019 using Capital IQ, a proprietary intelligence platform documenting financial investments. Metrics categorized were investments by year, investment amount, and subspecialty domain as per the American Academy Orthopaedic Surgeons website. The compound annual growth rate (CAGR) for both quantity and dollar amount of investments was calculated over the study period and the two decade-long periods (2000–2009 and 2010–2019). Results. Over two decades, 673 VC investments took place, involving a total of US$3.5 billion. Both the number and dollar value of investments were greater in the second decade (440, US$1.9 billion), compared to the first decade (233, US$1.6 billion). Both quantity and dollar amount of VC investments grew over the first decade, with a CAGR 9.53% and 4.97%, respectively. However, investment growth declined in the latter decade. The largest and most frequent investments took place within spine surgery and adult reconstruction. Conclusion. An initially rising trend in VC investment in orthopaedic-related businesses may have plateaued over the past decade. These findings may have important implications for continued investment into orthopaedic innovations and collaboration between the surgical community and private sector.

Management of Innovative Projects Involving Venture Capital Investments

10.12737/2936 ◽  
2014 ◽  
Vol 3 (1) ◽  
pp. 26-36
Author(s):  
������ ◽  
Aleksandr Dagaev
Keyword(s):  
High Risk ◽  
Venture Capital ◽  
Capital Investment ◽  
Capital Investments ◽  
Wide Spread ◽  
Venture Capital Investment ◽  
Innovative Process ◽  
Venture Capital Investments ◽  
End Results

The paper is devoted to considering of some problems related to high risk innovative projects management. These problems are a consequence of uncertainty inherent in innovations with realization terms, needs for resource providing and even with the end results of carried-out projects. The specified reasons demand use of non-standard approaches to project management, considering specifics of innovative process. Some of such approaches wide-spread in a practice of venture capital investment are discussed.

scholarly journals REAL OPTION ANALYSIS OF VENTURE CAPITAL INVESTMENTS

2020 ◽  
Vol 3 (1) ◽  
pp. 64-77
Author(s):  
Alexandra Posza
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Real Option ◽  
Evaluation Method ◽  
Growth Potential ◽  
Capital Investments ◽  
Discounted Cash Flow ◽  
Venture Capital Investment ◽  
High Degree ◽  
Venture Capital Investments

Venture capital investments play an important role in the development and growth of start-up companies that are characterized by a high degree of uncertainty and growth potential, and venture capital is also one of the major sources of financing for entrepreneurial businesses. In the case of venture capital investment, staging has a huge potential, so the venture capitalists keep the right to participate in further financing rounds. The real option approach as an evaluation method provides an opportunity to evaluate this kind of investment with the help of flexibility in the case of a high degree of uncertainty. The paper puts the emphasis on the evaluation and the effectiveness of venture capital investments primarily from the aspect of real option theory tested on Hungarian venture capital cases. The paper concludes that the option-based valuation methods are more suitable for evaluating venture capital investments than others, especially the discounted cash flow method.

scholarly journals Internationalisation and localisation: Foreign venture capital investments in the United Kingdom

2020 ◽  
Vol 35 (3) ◽  
pp. 230-256 ◽  
Author(s):  
Richard T Harrison ◽  
Babangida Yohanna ◽  
Yannis Pierrakis
Keyword(s):  
Economic Development ◽  
Venture Capital ◽  
Capital Investment ◽  
Turn Of The Century ◽  
Capital Investments ◽  
Venture Capital Investment ◽  
The United Kingdom ◽  
The Uk ◽  
Economic Regions ◽  
Venture Capital Investments

Venture capital plays a significant role in economic development through the emergence of new firms, technologies, industries and markets. This role, however, is associated with systemic uneven development regionally as both the supply of venture capital and the investment in new and growing ventures is highly concentrated regionally in the core economic regions of a country. Over the past decade, this intra-national regional concentration has been accompanied by an increasing internationalisation of the venture capital industry, as cross-border investment becomes more significant. In this paper, we explore the implications of this internationalisation for regional economic development in the UK. We conclude that the geography of venture capital in the UK has been shaped since the turn of the century by a significant increase in venture capital investments made by foreign funds, mainly in the form of co-investments with local funds. These foreign venture capital investments are primarily concentrated in London, Southeast England and East of England, which collectively attracted 82.5% of all foreign venture capital investments made to UK companies in 2017, strongly reinforcing the existing spatial concentration of venture capital investment. The paper concludes by questioning whether this increased dependency of these regions on foreign venture capital matters to regional development and draws out some of the implications for public policy.

scholarly journals Venture Capital Investments Models in Russia and the USA as Key Factor for Development of Innovative Enterprises

2019 ◽  
Vol 10 (4) ◽  
pp. 501-515
Author(s):  
A. G. Philippov ◽  
E. V. Gruzdeva
Keyword(s):  
Comparative Analysis ◽  
Venture Capital ◽  
Capital Investment ◽  
The United States ◽  
Theoretical Research ◽  
Capital Investments ◽  
Venture Capital Investment ◽  
The Usa ◽  
Investment Models ◽  
Venture Capital Investments

Purpose: this article aims to determine key characteristics features of venture capital investments models in the context of the development of innovative enterprises. For this purpose the authors conducted analysis of the current state and key differences of venture capital investments models in Russia and in the USA, determined fields and ways for further improvement of domestic models of venture capital investments.Methods: to achieve the stated goal, theoretical research methods - abstraction, analysis and synthesis were used. Adoption of these methods, led to analysis of the theoretical basis of venture capital investments models and identification of key features having the greatest practical significance. The models of venture capital investments in Russia and the USA were studied, and a quantitative and qualitative comparative analysis of the elements characterizing the models of venture capital investments was carried out. The study was based on the data published by the national associations of venture investors and the information database of venture capital companies Pitchbook.Results: this article reveals the importance of venture capital investments as the main factor affecting the innovative development of the Russian economy. In modern conditions, venture capital investments are a key tool that helps bring financial resources to young innovatively active companies. This article summarizes results of the study of the theoretical base of venture capital investments models and the historical dynamics of venture capital investments in Russia and the USA. A comparative analysis revealed similarities and differences between the following elements, characterizing the models of venture capital investments in Russia and the USA: stages of development of venture capital companies, types of investors and sources of venture financing, distribution of venture investments by industry, exit strategies and organizational forms of venture capital investments. The paper as well summarizes fields and ways for further improvement of models of venture capital investments based on a comparative analysis.Conclusions and Relevance: based on the conducted research and comparative analysis of venture capital investment models in Russia and the United States, the proposals for further improvement of Russian venture capital investment models were developed and presented in the article.

scholarly journals The impact of foreign direct investment and venture capital investment on entrepreneurship in the Republic of Serbia

2019 ◽  
Vol 8 ◽  
pp. 67-86
Author(s):  
Ivana Jolović ◽  
Alpar Lošonc
Keyword(s):  
Foreign Direct Investment ◽  
Venture Capital ◽  
Financial Stability ◽  
Direct Investment ◽  
Capital Investment ◽  
Venture Capital Investment ◽  
Starting Point ◽  
The Republic ◽  
The Impact ◽  
Venture Capital Investments

The subject of the research is the examination of features and significance of two modern types of investment intended for financing entrepreneurship: that is, foreign direct investment and venture capital investment. The starting point of the study is the sector of small and medium-sized enterprises and entrepreneurs with all the challenges and opportunities that characterize its financial position in the Republic of Serbia. The aim of this research is to analyse the impact of both direct investment and entrepreneurial capital investment on small businesses, or more precisely, to examine the influence of foreign direct investment and venture capital investment on entrepreneurship. This paper focuses on the impact that these types of financing have on management, financial stability, and the performance of the relevant business entities. Furthermore, the current situation and perspectives of these types of financing are analysed in detail. The aim of this paper is to provide insight into the effects that foreign direct and venture capital investments have on Serbian small and medium-sized enterprises and the entrepreneurial sector, as well as to point to what is currently the more favourable solution for the financing problem with which these entities are faced. The following methods are used for the preparation of this paper: a detailed analysis of the content of European and national statistical reports; available national and foreign literature of international and domestic authors in the field of foreign direct investment, venture capital investment and entrepreneurship; descriptive and comparative methods.

scholarly journals Growth and venture capital investment potential for university spin-offs in Hungary

2013 ◽  
Vol 7 (4-5) ◽  
pp. 31-38 ◽  
Author(s):  
Patrícia Becsky-Nagy
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Small Firms ◽  
Research Question ◽  
Academic Research ◽  
High Growth ◽  
Growth Potential ◽  
High Tech ◽  
Capital Investments ◽  
Venture Capital Investments

Venture backed spin-offs represent a low proportion of companies, even of innovative companies. The research question was, whether these companies have an important role in innovation and economic growth. I present the most important indicators of innovation in connection with entrepreneurship, the measures of start-ups, mainly the high-tech ones. I describe the position of venture capital industry nowadays, detailing the classical venture capital investments, targeting high-growth potential small firms, even university spin-offs. The study presents the results of a survey made as a counterpart of an academic research team, examining spin-offs, entrepreneurs and technology transfer in the most important Hungarian universities. I found that the most important obstacles of venture capital investments in high-tech spin-offs are the information gap between demand and supply side, the lack of entrepreneurs’ willingness to give up freedom in decision making, despite of low managerial skills. The low quality of financial environment is also an obstacle of the segment. JEL Codes: G24, M13

A CONFIGURATIONAL PERSPECTIVE ON VENTURE CAPITAL INVESTMENTS

2016 ◽  
Author(s):  
Uwe Messer ◽  
Alexander Leischnig ◽  
Sabrina Thornton
Keyword(s):  
Venture Capital ◽  
Capital Investments ◽  
Venture Capital Investments

Equity Regulation and U.S. Venture Capital Investment

2017 ◽  
Vol 2017 (1707) ◽  
Author(s):  
Tyler Atkinson ◽  
◽  
John V. Duca ◽  
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Venture Capital Investment
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