Impact of corporate venture capital firms' organisation on their performance

2020 ◽  
Vol 11 (3) ◽  
pp. 258
Author(s):  
Samson Omale ◽  
Michael Neubert ◽  
Myles Flott ◽  
Tatiana Tauhata
Keyword(s):  
Venture Capital ◽  
Corporate Venture Capital ◽  
Corporate Venture ◽  
Venture Capital Firms

Impact of corporate venture capital firms' organisation on their performance

2020 ◽  
Vol 11 (3) ◽  
pp. 258
Author(s):  
Tatiana Tauhata ◽  
Myles Flott ◽  
Michael Neubert ◽  
Samson Omale
Keyword(s):  
Venture Capital ◽  
Corporate Venture Capital ◽  
Corporate Venture ◽  
Venture Capital Firms

scholarly journals Moderating Factors in Distant Investment of Corporate Venture Capital

2019 ◽  
Vol 5 (1) ◽  
pp. 19 ◽  
Author(s):  
Shinhyung Kang ◽  
JungTae Hwang
Keyword(s):  
Venture Capital ◽  
Target Selection ◽  
Corporate Venture Capital ◽  
Information Cost ◽  
Business Units ◽  
Moderating Factors ◽  
Corporate Venture ◽  
Venture Capital Firms ◽  
Selection Of

The role of venture capital as mediator and gatekeeper is well acknowledged and geographical barriers for open innovation have been questioned, but venture capital firms’ distant investments have been investigated only rarely. The strategic benefits accrued from corporate venture capital (CVC) investment depend on the selection of target ventures. Prior research, however, overlooked the incurred information cost for identifying a potential target. Considering that innovative ventures often reside in distant locations, this paper aims to investigate what factors alleviate the information cost for CVCs when identifying target ventures in distant locations. We expect a CVC’s target selection in distant locations will be limited to the ventures under a tight appropriability regime, ventures within the same industries as a CVC’s business units, and ventures with pre-existing investors that a CVC has prior ties with. The hypotheses are tested with the data on CVC investments in the U.S. between 2006 and 2013. The results empirically support the hypotheses.

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