scholarly journals The Definition of Money Grand Received as a Key Determinant of Venture Investment Size in IT Russian Based Startups

2020 ◽  
Vol 14 (3) ◽  
pp. 19-27
Author(s):  
Ivan Rodionov ◽  
Alexander Semenov ◽  
Aleksey Oskin
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Grant Support ◽  
The Usa ◽  
Investment Size ◽  
Definition Of ◽  
Private Venture ◽  
Grant Size ◽  
Legal Mechanism ◽  
The Impact

Since 2006, Russian policymakers have been actively taking various measures to stimulate the venture capital market. Government venture capital funds are being created, for example, the Russian Venture Company with a capital of 15 billion rubles. Since 2011, thanks to the new legal mechanism, state-owned companies begin to invest in private venture funds. These measures have led to increased fundraising for startups. The main mechanism of such financing is grant support for young companies. According to 2018, the amount of grants to the total amount of funds raised in Russia is one of the highest among developed and developing countries, for comparison in the USA, it is more than 2.5 times lower. The venture market specifics is such that when deciding whether to invest in a company, investors inevitably turn their attention to the previous rounds of financing the company. The purpose of the work is to analyze the effect of the money grant received on the volumes of attracting subsequent financing. To analyze the impact of the receiving money grant, the determinant approach was used, as the most common in research on this topic. Based on a sample of 184 Russian IT startups, two OLS models have built to show the effect of money grant size to follow-on investment rounds. As a result, various sets of determinants were considered that explain the volume of investments attracted by startups for both international markets and the Russian market. In addition, an excursus was conducted to study the effectiveness of government venture funds, which are the main grantors in the Russian venture market. Based on the results of previous studies on this topic, it was shown that the size of the money grant has a positive effect on the amount of funding attracted in both follow-on rounds. For comparison, a number of previous studies of the Russian venture capital market show that the investment size of the current round has influenced only by the previous fundraising. Such a result testifies to the attractiveness for investors Russian IT startups that received grant support. The scientific novelty of the article is that the amount of funding attracted by startups is explained by such a specific indicator as grant support. In addition, the results obtained have certain practical value for those who invest in Russian startups. Investing in startups that received grants increases the likelihood of an exit for the investor in the next investment round.

Counter-cyclical public venture capital: Debt-funding as an anti-austerity innovation strategy

2017 ◽  
Vol 56 (3) ◽  
pp. 477-495 ◽  
Author(s):  
Alex Etzkowitz ◽  
Henry Etzkowitz
Keyword(s):  
Venture Capital ◽  
Interest Rates ◽  
Innovation Strategy ◽  
Productive Capacity ◽  
Knowledge Based ◽  
Low Interest Rates ◽  
The Usa ◽  
The Business Cycle ◽  
Smart Specialization ◽  
Private Venture

This article outlines a counter-cyclical innovation strategy to achieve prosperity, derived from an innovative project, the California Institute for Regenerative Medicine (CIRM). We identify an ‘innovation paradox’ in that the very point in the business cycle, when legislators are tempted to view austerity as a cure for economic downturns and to reduce innovation spend, is when an increase is most needed to create new industries and jobs and innovate out of recession or depression. It is both desirable and possible that policymakers resist the urge to capitulate to the innovation paradox. During periods that exhibit subdued inflation, elevated spare productive capacity, and low government borrowing rates, governments should increase their borrowings and use the proceeds to boost investment targeted towards innovation. We show how the State of California successfully utilized debt financing, traditionally reserved for physical infrastructure projects, to stimulate the development of intellectual infrastructure. Finally, we recommend a halt to European austerity policies and a ‘triple helix’ broadening of narrow ‘smart specialization’ policies that chase a private venture capital chimera. Europe should seize the present macroeconomic opportunity of low interest rates, borrow for innovation and be paid back manifold by ‘picking winners’, similarly to what the USA has been doing through DARPA (Defense Advanced Research Projects Agency) with GPS, as a response to Sputnik, the Internet and artificial intelligence, or the driverless car, formerly known as the ‘autonomous land vehicle’ in its military guise. Proactively targeted macroscopic investments in innovation are needed to solve the productivity/employment puzzle and foster the transition to a knowledge-based society.

Ciguapas in New York: Transcultural Ethnicity and Transracialization in Dominican American Performance

2012 ◽  
Vol 46 (1) ◽  
pp. 139-153 ◽  
Author(s):  
EMILIA MARÍA DURÁN-ALMARZA
Keyword(s):  
New York ◽  
Dominican Republic ◽  
Identity Formation ◽  
The Usa ◽  
And Migration ◽  
The 1960S ◽  
Definition Of ◽  
Dominican Women ◽  
The Impact ◽  
Dominican American

The Dominican American community in New York is perhaps one of the best examples of how processes of transculturation are affecting traditional definitions of ethnic identification. Given the intense economic, social and cultural transnational exchanges between the island and the USA from the 1960s, Dominicanyorks have been challenging the illusion of homogeneity in the definition of Americanness for decades, creating transnational social networks that transcend traditional national and ethnographic boundaries. The theatrical works of Josefina Báez, a Dominican American performer living in New York, and Sherezada (Chiqui) Vicioso, a Dominican poet and playwright who lived and worked in the US metropolis for decades before moving back to the Dominican Republic, lyrically explore issues of diaspora, identity and migration and the impact these phenomena might have in the lives of migrant Dominican women. Presenting diasporic experiences from two differing but interconnected locales – New York and the Dominican Republic – these plays offer two complementary views on the ways in which ethnicity, race, social class, age and geopolitical location interact in the formation of transcultural identities, thus contributing to develop a hemispheric approach to the study of identity formation in the Americas.

The Politics of the Sharing Economy

2020 ◽  
pp. 21-36
Author(s):  
David Murillo
Keyword(s):  
Venture Capital ◽  
Business Model ◽  
Private Equity ◽  
Sharing Economy ◽  
Moving Target ◽  
Definition Of ◽  
The Impact ◽  
Platform Economy ◽  
Academic Debate

The current academic debate on the sharing economy (SE) seems to embrace three main discussions: its definition, its effects, and the role of regulation. A neglected topic here seems to be analyzing the specific implications of the changing nature of these firms boosted by private equity and venture capital. As the author points out, we need to analyze not only the impact of a changing business model but, specifically, how stakeholders, cities, and regulators should approach this moving target now called SE. In the following sections the author departs from a traditional definition of the sharing economy to start building the case for treating the SE at large as an epiphenomenon of the platform economy, and as a temporary condition based on a moveable business model. The chapter closes by introducing the regulatory hurdles that come associated with the previous and mapping out its different futures.

Innovation-Supporting Effect of Government Versus Private Venture Capital: Evidence from Chinese Listed Companies

2020 ◽  
Vol 19 (3) ◽  
pp. 245-281
Author(s):  
Xiaohui Tao ◽  
Yang Li
Keyword(s):  
Venture Capital ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Threshold Effect ◽  
Listed Companies ◽  
Threshold Test ◽  
Chinese Listed Companies ◽  
Enterprise Innovation ◽  
Private Venture ◽  
The Impact

Abstract Venture capital (VC) can promote the innovation of invested enterprises through financial support, social networking, and intellectual capital. Based on data of Chinese listed companies from 2003 to 2016, this study, firstly, compares the impact of government and private VC on enterprise innovation using Possion regression, and applies the ITCV method and Negative Binomial Regression for Robustness Examination, then, explores the relationship between their shareholding percentage and enterprise innovation with threshold test. The results show that: the performance of private VC is significantly positive and in line. With the increasing shareholding percentage of private VC, the innovation of invested enterprises increases. The overall performance of government VC, however, is not significant, and the shareholding percentage of government VC also has no significant impact on the innovation of invested companies. Additional testing revealed that a “threshold effect” however exists in the impact of the shareholding percentage of government VC on innovation: within a certain range, the higher the shareholding percentage, the more significant the impact on innovations becomes, but beyond that range, the percentage is inversely related to innovation.

The effect of industrial competition on employment

2017 ◽  
Vol 27 (4) ◽  
pp. 410-432 ◽  
Author(s):  
Alfonso Mendoza-Velazquez
Keyword(s):  
Employment Growth ◽  
Negative Impact ◽  
Industrial Clusters ◽  
Least Square ◽  
Content Type ◽  
The North ◽  
Industrial Specialization ◽  
The Usa ◽  
Definition Of ◽  
The Impact

Purpose This study investigates the existence of Marshall, Jacob and Porter’s type of externalities in Mexico. We measure the impact of industrial specialization, competition and diversity on employment growth for the period 2004 to 2008. Design/methodology/approach The analysis is based on data from 41 highly dynamic industrial clusters originally obtained by applying Porter’s (1998) methodology. We use a cross-section specification estimated via instrumental variables and two-stage least square estimation (2SLS) to control for endogeneity. Findings On average, we find that industrial specialization exerts a negative impact on employment growth within states and within clusters, indicating that traded industries in Mexico carry very little innovation, operate in early stages of the life cycle, face high costs of employment reassignation or exhibit low adaptability. A negative impact of specialization on employment conforms with Jacobs (1969) type of externalities and confirms what other studies have found in France (Combes, 2000), Korea (Lee et al., 2005) and the USA (Delgado et al., 2014). The authors also find that competition generates more employment. Research limitations/implications Industrial data at the sub-branch level were obtained from the Economic Census (EC) of the National Institute of Geography and Statistics (INEGI). The EC information for 2004 was still not fully compatible with the North America Industry Classification System (NAICS), with 262 of the 309 data at the fourth-digit level aligned to the USA. In addition, industrial information from the EC is recorded every four years, which prevents this study to use panel data techniques and it makes it impossible to use time series methods. Practical implications Policymakers can clearly identify competition forces having a significant impact on employment growth. This can orient policymakers to implement measures to encourage the development of some of these clusters, as well as to identify some of the sources that drive specialization, competition and diversity. Originality/value This paper contributes to the debate on the existence of Marshallian (MAR), Jacobian and Porter externalities. This is the first study using the definition of traded clusters in Mexico, which allows the authors to identify how specialization, competition and diversity forces drive the dynamics of regional employment growth.

scholarly journals Az innovatív kis- és középvállalkozások finanszírozása kockázati tőkével

2012 ◽  
Vol 7 (1-2) ◽  
pp. 24-29
Author(s):  
Judit Glavanits
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Fund Raising ◽  
Market Size ◽  
Legal Rules ◽  
Venture Capital Fund ◽  
The Usa ◽  
Capital Financing ◽  
Closing The Gap

Closing the gap between the USA and EU venture capital market size is crutial for european innovative small and medium sized companies. As the financial crises started in 2008 weekend the possibilities for external capital, the role of venture capital financing is revaluated. The study analyses the similarities and differences in the legal rules of venture capital fund raising and financing revised by the USA's Dodd-Frank Act, and the European AIMF-directive. The study also suggest the changes in connection with the European Commission's prepared document on the European Venture Capital Fund, and it's effects on the innovative small-and medium sized companies. The conclusion is that the new rules of venture financing both in the USA and Europe sets up significantly more administrative difficulties for funds, but more stability and safe for entrepreneurs.

scholarly journals What qualities do government-owned venture capital investors seek in a new venture? A comparison of investment criteria across pre-seed, seed, and expansion stage startups

2020 ◽  
Vol 51 (11) ◽  
pp. 64-76
Author(s):  
Endre Mihály Molnár ◽  
Erika Jáki
Keyword(s):  
Life Cycle ◽  
Venture Capital ◽  
Life Cycle Stage ◽  
Screening Process ◽  
Verbal Protocol Analysis ◽  
Fund Managers ◽  
Life Cycle Stages ◽  
Expansion Stage ◽  
Investment Size ◽  
Private Venture

Private venture capital (VC) investors usually do not invest in early life-cycle stage startups such as seed and pre-seed companies, since investment size typically doesn’t reach investment thresholds. The entry of governments with fund managers to venture capital markets presents seed and pre-seed companies with the opportunity to receive funding. This paper examines the main investment preferences of Hungarian government-owned venture capital investors regarding pre-seed, seed, and expansion stage startups. Verbal protocol analysis enabled examination of the screening process in real-time in all three life-cycle stages. It is found that governmental VC funds mostly value financial indicators followed by market-related qualities while private VCs value these characteristics in alternate formation. However, in the pre-seed stage, the financial acumen and capabilities of management teams form the main criteria in similarity to angel investors. Governmental VCs also greatly seek innovational value in target firms.

scholarly journals Modeling the Impacts of Venture Capital Investment on Firm Innovation

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Han Qiao ◽  
Sen Zhang ◽  
Yao Xiao
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Capital Investment ◽  
Inhibitory Effect ◽  
Firm Innovation ◽  
Venture Capital Investment ◽  
Chinese Firm ◽  
Innovation Activities ◽  
Growth Enterprise Market ◽  
The Impact

Taking firms listed on the Chinese Growth Enterprise Market (GEM) in 2008–2017 as the sample, this study investigates the impact of venture capital (VC) investment on Chinese firm innovation using propensity score matching and a difference-in-differences (PSM-DID) model. The results show that, overall, firms’ innovation inputs and outputs do not show obvious enhancement due to VC entry, but instead show a strong and then weak inhibitory effect. VCs have heterogeneous impacts on firm innovation; that is, compared to other types of firms, firms with technology-dependent characteristics and firms whose actual controllers are experts in the same industry can effectively mitigate the adverse impact of VC on innovation inputs and gradually promote growth in the quantity and quality of the innovation outputs after the second year of VC entry. This study not only reveals the impact of VC on firm innovation activities in the Chinese capital market but also provides empirical evidence to help improve the financial innovation service system and the use of the capital market to promote innovation in China.

scholarly journals Empirical model for analysis of the dynamics of algorithmization (artificial intelligence technology) in the field of security by the example of the USA

2021 ◽  
Author(s):  
A.M. Turobov ◽  
M.G. Mironyuk
Keyword(s):  
Artificial Intelligence ◽  
Empirical Model ◽  
Digital Technologies ◽  
The State ◽  
Security System ◽  
State Security ◽  
The Usa ◽  
Artificial Intelligence Technology ◽  
Definition Of ◽  
The Impact

How does the state security system evolve under the influence of the artificial intelligence technology? To answer this question, an empirical model is proposed. The model evaluates the state security system (by the example of the USA) using the security consistency parameter, which estimates how the state perceives threats (indicator of threats) and whether the state has the necessary capabilities to counter them (indicator of capabilities) in relation to the artificial intelligence technology. The model (as well as the conceptualization of the artificial intelligence technology in the context of the security domain) provides evidence of how security transformations occur. It serves as a tool for studying the corresponding changes and assessing the state security system. It is necessary to indicate the limitation of the study: we do not consider direct military applications in the field of automation and algorithms (artificial intelligence technology). The validation of the empirical model has been undertaken using the case of the USA (eight-time intervals are subject to analysis, namely: 1999, 2002, 2006, 2010, 2012, 2015, 2017, 2019). With the development of the technology itself, the “interest” of the state and the definition of threats, as well as the rapid growth of the capabilities of the artificial intelligence technology (coincides with the years of maximum progress in computing power and the introduction of new algorithms) are growing, and since 2012, the dynamic has been linear, since more new “discoveries” have contributed to evolutionary rather than “revolutionary” growth trajectory. The developed model is scalable. This feature may be useful in the empirical security studies: the artificial intelligence technology within the model can be replaced with other types of digital technologies (for example, big data, cloud computing or 5 g connection technologies, etc.); thus, empirical models of security consistency under the impact of other technologies can be developed. The approach proposed allows to under take cross-country comparisons with respect to specific types of digital technologies and their interactions with the security domain.

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