scholarly journals Achieving venture returns through corporate spinouts

1969 ◽  
Vol 8 (4) ◽  
Author(s):  
Ashley Ledbetter ◽  
Ilan Zipkin
Keyword(s):  
Private Equity ◽  
Life Science ◽  
High Growth ◽  
Biotechnology Industry ◽  
Venture Capitalists ◽  
Know How ◽  
Entrepreneurial Spirit ◽  
Start Up ◽  
A Company ◽  
Parent Companies

As the biotechnology industry matures, the opportunity arises to establish companies by 'spinning out' undervalued but significant assets from larger biotechnology or pharmaceutical parent companies. Recognising the value in such assets and achieving rapid and meaningful returns on investments in corporate spinouts requires the infusion of the operational discipline of start-up companies along with the entrepreneurial spirit of a high-growth company. For this reason, spinout investing seems to be a natural fit with venture capitalists, whose perspective, experience and network can add tremendous value to a company at this stage. And yet spinout investing is also an area that can require significant cash commitments, which exceed the scale at which biotechnology venture capitalists have typically invested. With the emergence of a new breed of larger life science private equity firms that can now bring both the know-how and the capital to spinout investing, this is no longer an issue. Such investors are catalysing and driving the success of this growing class of investments to achieve the kinds of returns that will make these entities compelling opportunities for both parent companies and the limited partners of venture funds.

THROUGH A FRACTURED LENS: WOMEN ENTREPRENEURS AND THE PRIVATE EQUITY NEGOTIATION PROCESS

2011 ◽  
Vol 16 (03) ◽  
pp. 333-350 ◽  
Author(s):  
FRANCES M. AMATUCCI ◽  
ETHNÉ SWARTZ
Keyword(s):  
Private Equity ◽  
High Growth ◽  
Negotiation Process ◽  
New Venture ◽  
Venture Capitalists ◽  
Growth Strategies ◽  
Equity Investment ◽  
Negotiation Strategies ◽  
Start Up ◽  
Investment Process

Access to financial resources remains an important aspect of new venture start-up and growth strategies. While women still obtain a small amount of total private equity investment, they are increasingly involved in developing high growth ventures which may be attractive investment opportunities for venture capitalists and business angels. Contract, or term sheet, negotiation is an important stage of the investment process. Although gender-related differences in negotiation styles are well documented in other fields, they have not been examined in entrepreneurship. This research utilizes a mixed method study of gender and negotiation strategies employed during the private equity investment process.

scholarly journals Private equity and venture capital in South Africa: A comparison of project financing decisions

2013 ◽  
Vol 16 (3) ◽  
pp. 258-278 ◽  
Author(s):  
David Portmann ◽  
Chipo Mlambo
Keyword(s):  
South Africa ◽  
Venture Capital ◽  
Private Equity ◽  
Venture Capitalists ◽  
Project Financing ◽  
Financing Decisions ◽  
Start Up ◽  
Risk Appetite ◽  
Investment Opportunities ◽  
Venture Capital Firms

This paper investigates the manner in which private equity and venture capital firms in South Africa assess investment opportunities. The analysis was facilitated using a survey containing both Likert-scale and open-ended questions. The key findings show that both private equity and venture capital firms rate the entrepreneur or management team higher than any other criterion or consideration. Private equity firms, however, emphasise financial criteria more than venture capitalists do. There is also an observable shift in the investment activities away from start-up funding, towards later-stage deals. Risk appetite has also declined post the financial crisis.

Private Equity and Distressed Debt Funds Emerging Role in Preventing and Participating in Restructurings

2017 ◽  
Author(s):  
Christopher Mallon ◽  
Shai Y. Waisman ◽  
Ray C. Schrock
Keyword(s):  
Private Equity ◽  
Early Stage ◽  
Leveraged Buyouts ◽  
Subordinated Debt ◽  
Investment Activity ◽  
Track Record ◽  
Development Cycle ◽  
Start Up ◽  
Wide Range ◽  
A Company

Private equity (‘PE’) investment and distressed debt investment covers a wide range of investment activity by pooled investment vehicles (ie, funds) in privately or publicly (through ‘take-private’ transactions or IPO’s) owned companies, using capital raised from institutional investors that are limited partners of the funds. Such investment activity can be broadly categorized according to the point at which the investment is made within the typical development cycle of a company: (i) initial venture capital provides seed capital for start-up businesses; (ii) growth capital assists early-stage companies with the growth of their operations; (iii) mezzanine financing, comprising the contribution of subordinated debt or preferred equity, provides further capital to more established businesses; (iv) leveraged buyouts (‘LBOs’) are pursued to acquire portfolio businesses with a proven track record of sales and financial performance; and (v) distressed debt investing (the focus of this chapter) which provides support to companies that are in financially precarious positions.

When startups exit: comparing strategies in Europe and the USA

2018 ◽  
Vol 39 (3) ◽  
pp. 26-33 ◽  
Author(s):  
Alessia Pisoni ◽  
Alberto Onetti
Keyword(s):  
Early Stage ◽  
High Growth ◽  
High Tech ◽  
Venture Capitalists ◽  
Content Type ◽  
Early Exit ◽  
Start Up ◽  
The Usa ◽  
Local Companies ◽  
Start Ups

Purpose The purpose of this paper is to present an overview of trends toward start-up exits. Exits represent the “end phase” of the start-up process, at least for the founders and the early investors. For high-growth venture-capital-backed companies, exits are often considered the ultimate goal of building a profitable venture. These ventures are intended from the beginning to harvest the financial value created by the business at some point in the future, and return capital to early investors. Design/methodology/approach The authors tracked 5,744 merger and acquisition transactions that have occurred between European and US tech start-ups since 2012. Data are drawn from CrunchBase, the most comprehensive database of high-tech companies and investors with information on the companies and investors around the world. The authors then compared the trends of acquisitions between European and US companies. Findings Results show that US companies are far more inclined to make acquisitions than European ones. Acquirers of start-ups, both from Europe and the US, prefer to buy local companies. However, recently, US companies have started to show more interest in European start-ups. Thus, signaling that the European start-up ecosystem is growing and becoming more attractive for US buyers. Furthermore, results show that start-up exits typically happen within a few years after a company’s establishment. Research limitations/implications The research does not take into consideration the price of the transaction, or the amount of capital invested by venture capitalists in the high-tech start-ups that have been acquired. Further research should address this specific problem by helping European start-ups understand how to plan the exit phase within few years from establishment. Practical implications The results have important implications both for entrepreneurs/managers and policymakers. Early exit appears to be a global trend among start-ups. This suggests that the exit phase should be properly planned to happen in the very early stage of the start-up process. On the other hand, the research also shows that there is still a gap to be filled in the European start-up ecosystems’ ability to produce exits and create new large innovative companies (the so-called “unicorns”). Originality/value To date, there has been a little research about exits for young high-tech ventures. This paper will attempt to shed new light on this so far under-explored issue by specifically analyzing exits as financial strategy for investors and entrepreneurs.

scholarly journals Arsen Rychinsky was my godfather

2006 ◽  
pp. 35-37
Author(s):  
Yu. Payevskyi
Keyword(s):  
Soviet Union ◽  
Religious Studies ◽  
The West ◽  
Good Relationship ◽  
Know How ◽  
The Soviet Union ◽  
Start Up ◽  
Famous Person ◽  
The Right ◽  
A Company

I am a person very far from the issues of religious studies. So I don't even know how to perform in front of such a solid audience. It turned out so much in my life that, as I see, a very famous person, even I did not know that she was so famous, Arsen Rychinsky was my godfather. The Rychinski family and the Pajewski family (this is my parents' last name) for many years, sometime in the 1920s, were as one family, that is, they were in very good relationship with each other, as much as in the good ones that I will give as an example . My father, Denis Pajewski, lived in Volyn as an emigrant from the Soviet Union: in the 1920s he fled to the West and then returned to Poland. He was, by profession, a businessman. When he raised start-up capital and wanted to start a business, he did not yet have Polish citizenship. Therefore, he opened his company by registering for Rychinsky. The fact is that in Poland there was a temporary center, that is, for so many years it was necessary to be a resident of this country in order to obtain the right to open a company.

scholarly journals Risk Profiles Along the Lifecycle in Dynamic Markets

2015 ◽  
Vol 6 (3) ◽  
pp. 35-46
Author(s):  
Tamas Koplyay ◽  
Brian Mitchell ◽  
Sorin Cohn ◽  
Maria Fekete ◽  
Abdelkader Jazouli
Keyword(s):  
Value Chain ◽  
Critical Role ◽  
Distribution Channel ◽  
Operating Mode ◽  
Life And Death ◽  
Dynamic Markets ◽  
Start Up ◽  
Distribution Channel Management ◽  
A Company

Abstract That supply chain management and logistics are a determining factor for the long term success of a company was well documented by Forrester over a half century ago [1], with the importance of the statement only growing through the intervening years.Whether consciously factored into the operating mode or not, logistics and distribution channel management plays a critical role in the life, and death, of a firm. From the rudimentary beginnings of the start-up company to the hectic world of the growth company and onto the relatively secure existence in mature markets, the value chain consisting of logistics and distribution channel linkages follows the firm, until it solidifies into immutable form of the mature value chain and begins to exert an inexorable pressure on the survival of the entire chain, and conversely the chain imposes its will on the members. The emergence of mature industry value chains is often driven by the need to monopolistically control logistics and distribution channels which provides a competitive advantage but also introduces a serious exposure to pending shock loadings of the chain.

Quintiles IPO

2017 ◽  
pp. 1-24
Author(s):  
David P. Stowell ◽  
Vishwas Setia
Keyword(s):  
Private Equity ◽  
Life Sciences ◽  
List Type ◽  
Publicly Traded ◽  
Discounted Cash Flow ◽  
Investment Bank ◽  
Strategy Process ◽  
Firm Owners ◽  
A Company

Quintiles Transnational Holdings Inc., the largest global provider of biopharmaceutical development and commercial outsourcing services, grew its revenue at a CAGR of 7.3% and EBITDA at 13.9% between 2008 and 2012.The case is set in December 2012–April 2013, when the majority of the firm was owned by founder Dennis Gillings and four private equity firms (Bain Capital, TPG Capital, 3i Capital and Temasek Life Sciences) after it was taken private in a management-led buyout in 2003 and a subsequent buyout in 2008. Five years after the second buyout, the private equity firm owners were looking to monetize their positions and considered different strategic alternatives: M&A sale to strategic or financial buyers, IPO, or capital restructuring through special dividends.Students will step into the role of an associate at the lead investment bank working with Quintiles. They must consider the case information and determine an IPO strategy, process, potential conflicts, and valuation.After reading and analyzing the case, students will be able to: Apply valuation techniques (discounted cash flow (DCF) and publicly traded comparables) in pricing an IPO Analyze the roles of different parties involved in the transaction Discuss the process of a company filing for an IPO Evaluate different strategic alternatives available to a private equity—backed company Address conflict of interest in management—led buyouts

scholarly journals An Analysis of the Entrepreneurial Ecosystem of Malawi: The Global Entrepreneurship Index (GEI) Approach

2021 ◽  
Vol 8 (1) ◽  
pp. 224-238
Author(s):  
Frederick Pobee ◽  
Thuso Mphela
Keyword(s):  
New Technologies ◽  
High Growth ◽  
Gdp Per Capita ◽  
Risk Capital ◽  
Entrepreneurial Ecosystem ◽  
Start Up ◽  
Depth Analysis ◽  
Per Capita ◽  
Global Entrepreneurship ◽  
The Relationship

The research paper provides an in-depth analysis of the entrepreneurial ecosystem of Malawi. Employing the Global Entrepreneurship Index (GEI) methodology, the findings reveal a weak entrepreneurial ecosystem with a GEI score of 12.2 out of a possible 100. The relationship between the GDP per capita and the three entrepreneurship sub-indices, thus, attitude, ability, and aspiration are very weak and fall well below global average trends. Unfortunately, despite the high total entrepreneurship activities (TEA) in Malawi, this leads to little contribution to the country's GDP per-capita – a common phenomenon in many developing countries. At the pillar level, Malawi’s performance is a mixed bag, however, with most pillars performing not only poorly but below world averages. Despite the general positive perception of entrepreneurship by citizens, the country’s weak entrepreneurial ecosystem has failed to harness the propensity to develop new products and adopt new technologies for innovation and high growth entrepreneurship. From a policy intervention perspective, Malawi needs to focus most of its efforts and investments in five areas that include start-up skills, risk acceptance, high growth, risk capital, and human capital to improve the country's GEI score by 0.02.

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