Signal sequences: Venture Capital, IPO and Valuation of Entrepreneurial Ventures at Acquisitions

2021 ◽  
Vol 2021 (1) ◽  
pp. 15680
Author(s):  
Massimo Colombo ◽  
Benedetta Montanaro
Author(s):  
Lyda Bigelow ◽  
Jennifer Kuan ◽  
Kyle Mayer

Regional differences among industry clusters have long been a puzzle, especially when performance differences are significant. This chapter examines the case of venture capital investing, in which Silicon Valley differs from the rest of the world despite attempts to imitate its model. The point of entry in this chapter is the contract between venture capitalist and entrepreneur. Although such contracts have been analyzed in other research, this chapter argues that the psychological effects of different contract styles are of primary importance to innovative outcomes of entrepreneurial ventures. Thus, it argues that regulatory focus theory, which considers the psychological effects of contracting, is essential to understanding differences in practice and outcomes in venture capital clusters.


2016 ◽  
Vol 13 (1) ◽  
pp. 221-229 ◽  
Author(s):  
Lars Silver ◽  
Björn Berggren ◽  
Andreas Fili

The financing of entrepreneurial ventures has been at the forefront of academic debate as well as policy-making discussion for almost a century. In general, there seems to be an agreement that the risks associated with business start-ups are higher than for mature firms, hence, these ventures will have to pay a higher interest rate than more mature and large firms. In this paper the authors analyze the role of a relatively new form of financing for entrepreneurial ventures – crowdfunding – and how this form of financing is similar and different from traditional sources of finance. The authors are also presenting different forms and models of crowdfunding available on the market together with illustrations from the crowdfunding industry in Sweden. The analysis indicates that the positive effects with crowdfunding are numerous but that the size of the crowdfunding sector is relatively small in comparison with the banking and venture capital industry


Author(s):  
Gary Dushnitsky

This article reviews the academic literature on corporate venture capital, that is, minority equity investments by established corporations in privately-held entrepreneurial ventures. It starts with a detailed definition of the phenomenon. An historical background of Corporate Venture Capital (CVC) is presented, followed by an extensive review of CVC investment patterns. The article then presents scholarly findings beginning with firms' objectives, through the governance of their CVC programmes and the relationships with the portfolio companies and ending with a review of corporate, venture and CVC programme performance. The article concludes with directions for future research.


2021 ◽  
pp. 353-369
Author(s):  
Lin Lin

This chapter focuses on the development of non-bank financial institutions, particularly venture capital (VC), angel capital, private equity, and foreign funds, and their role in funding entrepreneurial ventures in China. It discusses the development of the venture capital market and the evolution of domestic and foreign funds in China. It examines the exits of VC-backed companies through initial public offerings (IPOs) and mergers and acquisitions and explores the connection between the stock market and VC market in China. It also evaluates recent institutional improvements and regulatory reforms for facilitating access to finance for small enterprises in China, especially the recent reforms to the stock market.


Author(s):  
Roberto Ragozzino

This chapter aims to provide a succinct review of the state-of-the-art academic literature on the topic of venture capital firms and their involvement in entrepreneurial ventures. Specifically, the chapter focuses on the relationship between the presence of VC firms and two key entrepreneurial outcomes: (a) strategic alliances, defined as the formation of cooperative agreements with strategic partners for the purpose of advancing the entrepreneurial firm’s competitiveness, and (b) liquidity events, defined as the sale of ownership to the general public through an initial public offering (IPO), or to a specific buyer through an acquisition. The chapter also highlights some key questions that remain unanswered, as well as a few areas of inquiry that challenge our common wisdom and give rise to controversy.


2019 ◽  
Vol 48 (5) ◽  
pp. 1150-1170 ◽  
Author(s):  
Massimo G. Colombo ◽  
Diego D’Adda ◽  
Anita Quas

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