scholarly journals Venture Capital’s Role in Financing Innovation: What We Know and How Much We Still Need to Learn

2020 ◽  
Vol 34 (3) ◽  
pp. 237-261 ◽  
Author(s):  
Josh Lerner ◽  
Ramana Nanda
Keyword(s):  
Venture Capital ◽  
Technological Change ◽  
Narrow Band ◽  
High Growth ◽  
Technological Innovations ◽  
Substantial Fraction ◽  
Welfare Impact ◽  
The Social ◽  
Capital Financing ◽  
Venture Capital Firms

Venture capital is associated with some of the most high-growth and influential firms in the world. Academics and practitioners have effectively articulated the strengths of the venture model. At the same time, venture capital financing also has real limitations in its ability to advance substantial technological change. Three issues are particularly concerning to us: 1) the very narrow band of technological innovations that fit the requirements of institutional venture capital investors; 2) the relatively small number of venture capital investors who hold and shape the direction of a substantial fraction of capital that is deployed into financing radical technological change; and 3) the relaxation in recent years of the intense emphasis on corporate governance by venture capital firms. While our ability to assess the social welfare impact of venture capital remains nascent, we hope that this article will stimulate discussion of and research into these questions.

Dimensions of SBIC and Venture Capital Financing

1978 ◽  
Vol 2 (3) ◽  
pp. 16-22
Author(s):  
James M. Johnson
Keyword(s):  
Small Business ◽  
Venture Capital ◽  
Investment Behavior ◽  
Business Investment ◽  
Investment Policies ◽  
Lack Of Information ◽  
Information Gap ◽  
Key Characteristics ◽  
Capital Financing ◽  
Venture Capital Firms

Financing the small business can be both frustrating and time consuming. A large part of the problem stems from the lack of information available to the entrepreneur concerning the investment policies and objectives of potential financiers. As a step toward filling this information gap, the present study reports some key characteristics of the investment behavior of Small Business Investment Corporations and Venture Capital firms. The data provided are designed to enable the entrepreneur to determine whether such sources of funding might be profitably pursued.

scholarly journals Empirical Analysis of Hungarian Firms According to Venture Capital Investment Criteria

2016 ◽  
Vol 9 (1) ◽  
pp. 16-32
Author(s):  
Judit Edit Futó
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Selection Process ◽  
Statistical Tests ◽  
Venture Capitalists ◽  
Venture Capital Investment ◽  
Capital Financing ◽  
Venture Capital Firms ◽  
Investment Process ◽  
Index Investment

Abstract Over the past decade the venture capital industry has become more and more prominent, not just on a global level, but in Hungary, too. Thanks to the JEREMIE Program a large number of new venture capital firms are located in our country, and therefore an investment wave has started. The aim of the paper is to sort micro- and small sized enterprises in terms of how appropriate is a venture capital financing. The main topic of the paper relates to the selection of firms for venture capital investment; therefore, in the first part of the study we briefly summarize a general venture capital investment process, highlighting both the selection process and the criteria used for selection. Then we propose 3 indexes (trustworthiness index, openness index, investment index), which we have created to help venture capitalists to decide whether the targeted enterprises are appropriate for them, or not. In the main part of the paper we provide a classification of micro- and small sized Hungarian firms based on my own survey, and we analyze what kind of relationship exists between the proposed indexes and the type of the classified firms. The result of the classification is that we identify four main firm types and, based on statistical tests, it can be said that there is no significant relationship between the trustworthiness index and the clusters, but that there are between the two other indexes and the clusters.

scholarly journals Expansion And International Expansion Of Small-To Medium Sized Firms: The Role Of Finance

2011 ◽  
Vol 4 (2) ◽  
Author(s):  
Jan Smolarski ◽  
Can Kut ◽  
Neil Wilner
Keyword(s):  
Venture Capital ◽  
Early Stage ◽  
High Growth ◽  
International Expansion ◽  
International Growth ◽  
Lump Sum ◽  
Capital Funding ◽  
Capital Financing ◽  
Venture Funding

Small- to medium-sized firms are expected to show international growth at an early stage. Several factors may affect the outcome of initial efforts to expand and internationalize. Our research examines how equity based venture funding affects SME expansion and internationalization. We divide venture capital financing into two categories: incremental financing where firms receive their venture capital funding in portions and lump-sum venture funding where firms receive their funding in one lump-sum. The results show that type of equity based venture capital financing affect expansion and internationalization. Incremental funding appears more appropriate for firms with high growth rates whereas lump-sum financing appears more appropriate for firms that are internationalizing their operations.

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.

Pulse and Progress of Venture Capital Financing in India: An Analytical Study

Think India ◽  
2019 ◽  
Vol 22 (3) ◽  
pp. 553-562
Author(s):  
Dr. Devarajappa S
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Analytical Study ◽  
Economic Empowerment ◽  
Statistical Tools ◽  
Venture Capital Investment ◽  
Secondary Sources ◽  
Current Trends ◽  
Capital Financing ◽  
Secondary Information

The Main objective of the paper is to examine the current trends and progress of the venture capital in India and the paper also highlights the concept and stages of financing of venture capital. To meet the aim objective of the study the researcher used secondary sources. The required secondary information has been collected through various articles, reports, magazines’ and websites. To examine the trends of venture capital in India, IVCA (Indian Venture Capital Association) report is used.  For the purpose of examine the data; the statistical tools like Mean, Standard Deviation, Charts and ANOVA, Correlation coefficient have been employed.   The study concludes that, the venture capital investment has been increasing in India and this is the positive indication for the country, to curb the unemployment, economic empowerment of people through maximizing startups in India

Venture Capital Financing and Firm's Investments

2008 ◽  
Author(s):  
Fabio Bertoni ◽  
Massimo G. Colombo ◽  
Annalisa Croce
Keyword(s):  
Venture Capital ◽  
Capital Financing
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