The Impact of Corporate Venture Capital on the Branding Efforts of New Technology Firms

2013 ◽  
Author(s):  
Ikenna S. Uzuegbunam ◽  
Brandon Ofem ◽  
Satish Nambisan
Keyword(s):  
Venture Capital ◽  
New Technology ◽  
Corporate Venture Capital ◽  
Technology Firms ◽  
Corporate Venture ◽  
The Impact

Corporate venture capital program autonomy, corporate investors’ attention and portfolio diversification

2016 ◽  
Vol 9 (3) ◽  
pp. 302-321 ◽  
Author(s):  
Yi Yang ◽  
Tianxu Chen ◽  
Lei Zhang
Keyword(s):  
Venture Capital ◽  
Negative Relationship ◽  
Portfolio Diversification ◽  
Corporate Venture Capital ◽  
Investment Portfolio ◽  
Content Type ◽  
Corporate Venture ◽  
Corporate Investors ◽  
The Impact ◽  
Linear Regressions

Purpose – From the attention-based view, the purpose of this paper is to examine how structural autonomy of a corporate venture capital (CVC) program influences its CVC managers’ investment decisions with regard to investment portfolio diversification. Design/methodology/approach – This study collects data from VentureXpert, Compustat, and the US Patent Office. The final sample consists of 868 CVC portfolio-year observations from 1990 to 2004. Panel linear regressions and hierarchical linear regressions are used in the analysis. Findings – The major finding of this study reveals that that structural autonomy of a CVC program is significantly related to its investment portfolio diversification. In addition to the direct effect, the authors also find that CVC structure autonomy moderates the relationship between corporate investor’s strategic attention and its CVC portfolio diversification. Specifically, when the autonomous level of a CVC program is high, the negative relationship between its parent’s relative growth potentials and CVC portfolio diversification will become positive, and the positive relationship between its parent’s business diversification and CVC portfolio diversification will become negative. Originality/value – The CVC literature has suggested the impact of CVC portfolio diversification on value creation for corporate investors (e.g. Yang et al., 2014), however, few studies have investigated why some corporate investors diversify their portfolio of venture companies while others do not. To fill such a gap, this study identifies antecedents of CVC portfolio diversification such as CVC structural autonomy and corporate investor’s strategic attention as well as their interactive impacts. The finding also provides valuable managerial implications on CVC program designs.

Diverse tipologie di venture capital e relazione tra investimenti e cash flow

2009 ◽  
pp. 73-103
Author(s):  
Fabio Bertoni ◽  
Massimo G. Colombo ◽  
Annalisa Croce
Keyword(s):  
Venture Capital ◽  
Cash Flow ◽  
New Technology ◽  
Cash Flows ◽  
Jel Classification ◽  
Corporate Venture Capital ◽  
Pecking Order ◽  
Investment Rate ◽  
Cash Flow Sensitivity ◽  
Corporate Venture

- In this paper we study the effect of venture capital (VC) financing on firms' investments in a longitudinal sample of 374 Italian unlisted new-technology-based firms (NTBFs) observed over the 10-year period from 1994 to 2003. In particular, we consider the influence of VC on both firms' investment levels and the sensitivity of investments to firms' cash flows. We also distinguish the effects of VC financing according to the type of investor: financial VC (FVC) investors and corporate VC (CVC) investors. We show that the investment rate of Italian NTBFs is strongly and positively correlated with their current cash flows. We also find that after receiving VC financing, NTBFs increase their investment rate independently of the type of VC investor. Even though, on average, VC financing seems not to affect the sensitivity of investments to cash flows, we have found that there is substantial heterogeneity according to the type of VC investor. In fact, CVC-backed firms still exhibit positive investment-cash flow sensitivity. Conversely, when firms receive VC financing from an FVC investor, the sensitivity of investments to cash flows disappears. Therefore, while this study clearly indicates that VC financing is beneficial to NTBFs, it also suggests that managers of NTBFs looking for external financing should be aware that the nature of these benefits depends crucially on the type of investor. . Keywords: investment, new technology-based firm, pecking order, venture capital, corporate venture capital Parole chiave: investimenti, imprese ad alta tecnologia, pecking order, venture capital, corporate venture capital . Jel Classification: G32 - D92 - G23

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