scholarly journals Did Venture Capital Promote Innovation in India?

2019 ◽  
Vol 9 (1) ◽  
pp. 2409-2413
Keyword(s):  
Venture Capital ◽  
Relevant Literature ◽  
Secondary Data ◽  
Innovative Technology ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Recent Past ◽  
Indian Context ◽  
Venture Capital Firms ◽  
Venture Capital Investments

The study exhorts to ascertain the general perception that Venture Capitalists fund innovative technology projects in the Indian context using primary and secondary data. A structured questionnaire was used to elicit response from 101 (sample) out of 134 (Population) SEBI registered and active Venture Capital firms in the recent past. The study analyses the mode of funding by Venture Capital firms and their geographical dispersion. The study ascertains whether Venture Capital firms have enabled innovation in the Indian context during the recent past or not. Finally, the study concludes that Venture Capital Investments have not been very enabling for innovative technologies in the Indian context, which is contrary to the relevant literature available in the context of USA and other developed nations.

Biotech venture capital investments in public equities and performance

2017 ◽  
Vol 22 (4) ◽  
Author(s):  
Hans Lennart Jeppsson
Keyword(s):  
Venture Capital ◽  
Hedge Funds ◽  
Venture Capitalists ◽  
Investment Horizon ◽  
Capital Investments ◽  
Public Firms ◽  
High Loss ◽  
Dollar Amount ◽  
Venture Capital Investments

This study examines a large sample of venture investments in public equities (VIPEs) in the biotechnology and pharmaceutical industry over the period 1995-2014. The results of the study are threefold. First, and contrary to widely held beliefs, there has been no significant increase in the number of VIPEs over time. In fact, both in terms of dollar amount as well as the number of VIPE transactions have actually went down post the record year in 2009. Second, this study documents that returns profiles from the public venture capital market share many similarities to the returns in the private VC market: few big winners, but overall a high loss rate. Approximately seven investments out of ten in public firms generate a loss. Third, the analysis of private investments in public equities shows that venture capitalists outperform other competitors, such as hedge funds and mutual funds. From a management perspective, venture investments in public equity provide several benefits including providing an additional source of potential funding, aligning the investment horizon of venture capitalists with other long-term investors, certifying the quality of the firm and contributing to the long-term success.

scholarly journals Which criteria matter most in the evaluation of venture capital investments?

2014 ◽  
Vol 21 (3) ◽  
pp. 505-527 ◽  
Author(s):  
José Carlos Nunes ◽  
Elisabete Gomes Santana Félix ◽  
Cesaltina Pacheco Pires
Keyword(s):  
Venture Capital ◽  
Early Stage ◽  
Management Team ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Share Capital ◽  
Content Type ◽  
The Impact ◽  
Venture Capital Investments ◽  
Public Share

Purpose – The purpose of this paper is to identify the importance assigned to the various criteria used by the Portuguese venture capitalists (VCs) to evaluate and select early stage venture capital (VC) projects. Design/methodology/approach – The data were collected through a questionnaire answered by 20 Portuguese VCs. The authors use descriptive statistics techniques and non-parametric tests to identify the most valued criteria and test differences in the importance assigned to the criteria of several types of VCs and investments. Findings – The study reveals that personality and experience of the entrepreneur and of the management team are the most valued groups of criteria. VCs with a majority of private share capital value more the personality of the entrepreneur and management team than the companies with a majority of public share capital. Additionally, the VCs that did not yet internationalize consider the personality of the entrepreneur and management team and the financial aspects, to be more important than the VCs that have already expanded abroad. Originality/value – It provides evidence on the VCs behavior in a small VC market. Since most of the existing literature on this area refer to large VC markets, the present study is important to investigate whether the conclusions reached by the previous studies can be extended to a small VC market. Also, this study is a contribution to the literature on the internationalization of VCs and it is the first study that explores the impact of the VCs being internationalized on the value given to the various selection criteria of early stage VC projects.

scholarly journals Valuing start-ups – selected approaches and their modification based on external factors

2016 ◽  
Vol 17 (4) ◽  
pp. 335-344 ◽  
Author(s):  
Martina Skalicka Dusatkova ◽  
Marek Zinecker
Keyword(s):  
Empirical Studies ◽  
Secondary Data ◽  
Accurate Estimate ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Explanatory Variables ◽  
Additional Information ◽  
Original Proposal ◽  
Start Up ◽  
Venture Capital Investments

The recent methods of start-up valuation seek to compensate for the lack of data necessary for a standard company valuation with additional information on the person of the entrepreneur and business project. None of the existing approaches, however, takes into consideration information about the environment in which the venture capitalists conduct their investments. Therefore, the aim of this paper is to develop an approach considering factors of the investee companies’ environment. Such a modification will allow a more accurate estimate of the value of the projects investigated. The nature of this study is explorative. It relies on secondary data that was collected using interviews and semi-structured questionnaires in previous empirical studies. During the course of the modelling process, information on the quality of the investee companies’ environment expressed is incorporated into the established start-up project valuations. Our original proposal consists of the modification of the β coefficient calculation for a given type of projects. An essential part of this modification is also a proposal for the extension of the project scoring characteristics to include expert estimates and, in the case of regression analysis, the inclusion of explanatory variables expressing the suitability of the environment for venture capital investments.

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
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