Download or read book Cross Border Venture Capital Investments written by Horstense Tarrade and published by Springer Science & Business Media. This book was released on 2012-07-02 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hortense Tarrade analyses over 200,000 venture capital (VC) investments over the past 20 years to understand the investors' motivation to select national or foreign companies into their portfolio. She compares the sensitivity of US-based, non-US and German VC firms to the availability of local deal supply and demand as well as the relative importance of their intrinsic capabilities in their investment scope decision ("Why do VC firms invest on a national, continental or global scope?"). Further, she provides an in-depth analysis of the role of geographic and cultural distance in investments by German VCs ("Why do VC firms invest in a target location rather than another?").

Download or read book Cross Border Venture Capital Investments written by Wendy A. Bradley and published by . This book was released on 2019 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cross-border venture capital (VC) investments play an important role in the scaling up of high-growth companies. However, policymakers worry that foreign VC investments transfer the majority of economic activity to the investor country. On the one hand, startups welcome the foreign capital, expertise, and networks that accompany cross-border investments. On the other hand, policymakers are concerned that cross-border investments predominantly benefit foreign economies and fail to develop the local entrepreneurial ecosystem.This paper describes a framework for how policymakers can develop a set of policies toward cross-border VC investments. The paper examines available data and trends about the role of cross-border investing, focusing on Europe, Israel, and Canada. Then, the paper explains the underlying economic challenges and develops a policy framework. The analysis shows that in addition to policies that aim to attract foreign investors, there are also important policies for the development of the domestic VC market. The analysis encompasses policies that are both financial and non-financial in nature. A core insight for policymakers is to retain a balance of initiatives, attracting foreign investors while simultaneously making sure to strengthen the country's domestic VC industry and innovation ecosystem. The mix of policies will adjust as the domestic ecosystem matures.

Download or read book Attracting Cross Border Venture Capital written by Markku V. J. Maula and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Examining an increasingly prevalent but under-researched phenomenon, cross-border venture capital investments, it is observed that local venture capitalists typically invest first, followed by foreign venture capitalists in later rounds. A model is developed that explains the role of a domestic venture capital investor in attracting foreign investors and which also accounts for the impact of various circumstances on the importance of this role. In our model based on analysis of nine cross-border venture capital-backed companies, local venture capitalists have several important roles in increasing the venture's cross-border investment readiness including advice to operational management and contributing contacts and local market knowledge. The importance of these roles is mitigated if the entrepreneurial team is highly experienced or if the home market is not important for the venture. The prominence of the local investor has signalling value. Finally, the local investor's international social capital facilitates the formation of cross-border syndicates. Overall, the model developed in the paper contributes to a better understanding of cross-border venture capital and in particular to the division of labour between domestic and foreign venture capitalists in international venture capital syndicates. The paper also contributes to the emerging literature on international social capital.

Download or read book Determinants of Cross Border Venture Capital Investments in Emerging and Developed Economies written by Daniel Hain and published by . This book was released on 2016 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Frequent and open interaction between venture capitalists (VCs) and entrepreneurs is necessary for venture capital investments to occur. Increasingly, these investments are made across jurisdictions. The vast majority of these cross-border investments are carried out in a syndicate of two or more VCs, indicating the effects of intra-industry networks needing further analysis. Using China as a model, we provide a novel multidimensional framework to explain cross-border investments in innovative ventures across developed and emerging economies. By analyzing a unique international dataset, we examine worldwide venture capital investment flows from 2000-2012 and consider the effects of geographical, cultural, and institutional proximity as well as institutional and relational trust. We find trust to mitigate the negative effects of geographical and cultural distance; where institutional trust is more relevant for investments in emerging economies, relational trust is more relevant for investments in developed economies.

Download or read book Interorganizational Commitment in Syndicated Cross Border Venture Capital Investments written by Markku V. J. Maula and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Cross-border venture capital has become increasingly common in recent years. Little is known, however, about the antecedents of venture capitalists' commitment to portfolio firms in international settings. We used a multiple case study to build a grounded model of interorganizational commitment in cross-border syndication networks. The model proposes that changes in a venture's prospects influence investors' commitment levels. This relationship is amplified by the remoteness of the investor and is mitigated by the investor's embeddedness in local syndication networks and the relative investment size. The model contributes to the literature on cross-border venture capital and interorganizational commitment in international settings.

Download or read book Cross Border Venture Capital Investments written by Shuangshuang Kong and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign investors are making larger investments in the Canadian venture capital (VC) market than Canadian investors, and Canadian VC exits are primarily M&As (Canada's Venture Capital and Private Equity Association, various years). This research provides a joint exploration of foreign venture capitalists' (VCs) participation in Canada and outcomes of VC exits. Using binary logistic regression and multivariate linear regression, this paper reports that the presence of foreign VCs in the Canadian market is accompanied with mixed exit-related outcomes. On the one hand, foreign VCs' participation is associated with higher likelihood of a successful exit through initial public offering (IPO), greater capital availability, and shorter time to exit. On the other hand, the relation between foreign VCs' participation and lower purchaser price per dollar of VC investment in exit through merger and acquisition (M&A) raises concerns about the monetary returns to Canadian investee firms and Canadian syndicate VCs. These empirical findings will help to facilitate a more comprehensive understanding of the Canadian VC market, as well as adding to the growing body of literature on cross- border VC investment.

Download or read book Report of Expert Group on Removing Tax Obstacles to Cross border Venture Capital Investments written by Venture Capital Tax Expert Group and published by . This book was released on 2010 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Economic Freedom and Cross Border Venture Capital Performance written by Lanfang Wang and published by . This book was released on 2015 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the determinants of cross-border venture capital (VC) performance using a large sample of 10,205 cross-border VC investments by 1,906 foreign VC firms (VCs) in 6,535 domestic portfolio companies. We focus on the impact of a domestic country's economic freedom on the performance of both VC investments and portfolio companies using a probit model and the Cox hazard model. After controlling for other related factors of domestic countries, portfolio companies, VCs and the global VC market, as well as year and industry fixed effects, we find that a domestic country's economic freedom is crucial to cross-border VC performance. In particular, in a more economically free country, as measured by the raw values of, quartiles of or the ranking in the index of economic freedom (IEF), a foreign VC-backed portfolio company is more likely to pull off a successful exit through an IPO (initial public offering) or an M&A (merger and acquisition), and a foreign VC firm is likely to spend a shorter investment duration in the portfolio company. We also identify interesting evidence on the impact of many other level factors of domestic countries, portfolio companies, VCs and the global VC market on cross-border VC performance.

Download or read book The Role of Domestic and Cross Border Venture Capital Investors in the Growth of Portifolio Companies written by David Devigne and published by . This book was released on 2016 with total page 2 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies how the presence of cross-border as opposed to domestic venture capital investors is associated with the growth of portfolio companies. For this purpose, we use a longitudinal research design and track sales, total assets and payroll expenses in 761 European technology companies from the year of initial venture capital investment up to seven years thereafter. Findings demonstrate how companies initially backed by domestic venture capital investors exhibit higher growth in the short term compared to companies backed by cross-border investors. In the medium term, companies initially backed by cross-border venture capital investors exhibit higher growth compared to companies backed by domestic investors. Finally, companies that are initially funded by a syndicate comprising both domestic and cross-border venture capital investors exhibit the highest growth. Overall, this study provides a more fine-grained understanding of the role that domestic and cross-border venture capital investors can play as their portfolio companies grow and thereby require different resources or capabilities over time.

Download or read book Managing Culture and Interspace in Cross border Investments written by Martina Fuchs and published by Taylor & Francis. This book was released on 2017-06-27 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the dialectics between spatio-organisational gaps and local contexts that characterise cross-border investments. "Interspatial" investments – be it mergers & acquisitions (M&A) or greenfield investments – are usually characterised by what is referred to as "otherness", i.e. organisational and cultural distances of the firms involved in relation to their regional contexts. At the same time, economic, political and socio-cultural linkages are decisive for attracting cross-border investments to regions and for providing firms with conditions supportive of their market success. As a consequence of being locked into complex structures of proximities, cross-border investments are situated in contested terrain. This terrain triggers learning processes in both regional actors and investors, which can result in the convergence of mindsets and organisational issues. This book is unique in that it combines interspace (defined as the distance between the new owner and the cross-border venture), place (the target region), interpretation (perception and understanding of the investment by the actors involved) and context (institutions, actor networks and interaction), thus offering better understanding of recent processes of globalisation. Crossing disciplinary boundaries by integrating economic geography and management studies, the volume adopts an innovative and spatially informed perspective on foreign direct investments (FDI). This perspective will be of great value to scholars, students and practitioners. The volume is inventive in its approach in that it offers fresh readings from interdisciplinary theoretical approaches and combines these with valuable empirical insights from developed as well as Emerging Economies.

Download or read book Fencing Off Silicon Valley written by Ufuk Akcigit and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The treatment of foreign investors has been a contentious topic in U.S. entrepreneurship policy in recent years. This paper examines foreign corporate investments in Silicon Valley from a theoretical and empirical perspective. We model a setting where such funding may allow U.S. entrepreneurs to pursue technologies that they could not otherwise, but may also lead to spillovers to the overseas firm providing the financing and the nation where it is based. We show that despite the benefits from such inbound investments for U.S. firms, it may be optimal for the U.S. government to raise their costs to deter investments. Using as comprehensive as possible a sample of investments by non-U.S. corporate investors in U.S. start-ups between 1976 and 2015, we find evidence consistent with the presence of knowledge spill-overs to foreign investors.

Download or read book American Venture Capital in a Post American World written by Robert J. Wuebker and published by . This book was released on 2000 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Is Venture Capital Really a Local Business written by Roman Kräussl and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Cultural Differences and Cross Border Venture Capital Syndication written by Na Dai and published by . This book was released on 2015 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine cross-border syndication in investments led by foreign venture capitalists (VCs) focusing on the potential correlation between cultural differences and the formation of VC syndicates. Contrary to the risk-sharing motive, we find that a greater cultural disparity between the countries of investors and their companies is actually associated with smaller VC syndicates. This is driven largely by lesser local investor representation in foreign VC led syndicates. However, certain cultural disparity related syndication strategies, such as the involvement of locally-experienced foreign VCs or syndicate members from culturally similar countries, are associated with greater presence of local VCs who provide valuable monitoring services. We further show that these culture linked syndication approaches are significantly correlated with VC financing and monitoring strategies in cross-border investments and their eventual success.

Download or read book Cross Border Venture Capital Performance written by Lanfang Wang and published by . This book was released on 2015 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the determinants of cross-border venture capital (VC) performance in the Chinese VC market. We focus on the impact of foreign VC firms' (VCs') human capital and domestic entrepreneurs' experience on the performance of both VC investments and portfolio companies using logit and Cox hazard models. After controlling for portfolio company quality, domestic VC industry development, domestic exit conditions and a number of other factors, little correlation was evident between VC performance and foreign VCs' human capital, such as experience, networks and reputation. In contrast, the domestic entrepreneurs' experience is crucial to VC performance. In particular, if an entrepreneur has more general experience in terms of the number of companies previously worked for or more special experience in terms of the number of companies previously served as a CEO or top manager, a portfolio company is more likely to pull off a successful exit through IPO or M&A, and the VCs are also likely to shorten their investment duration in the portfolio company.

Download or read book Cross Border Capital Quest written by Kal Mentak, PhD and published by khalid mentak. This book was released on 2024-01-25 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: Did you know that 97% of startups fail in their quest for global funding? "Cross-Border Capital Quest: A Startup's Journey to Global Funding" is not just a book; it's a roadmap to being part of the triumphant 3%. For startup entrepreneurs eager to conquer international markets and venture capitalists looking for the next big global opportunity, this book is your beacon in the often murky waters of global fundraising. Imagine understanding the cultural nuances of pitching in Tokyo versus Silicon Valley, or mastering legal frameworks from Berlin to Bangalore. That's just the tip of the iceberg. Each chapter is a treasure trove of insights: from preparing your startup for the global stage to innovative fundraising strategies that go beyond traditional methods. Ever thought about how blockchain could revolutionize your funding process? We've got that covered. Struggling with navigating international financial laws? Consider it demystified. But it's not all serious business. Our journey is peppered with humor and real-world anecdotes that make the complex world of global financing not just palatable but downright enjoyable. Picture this: you're negotiating a deal, armed with knowledge from our case studies and strategies – you're not just participating in the global market; you're leading it. Transform your startup from a local contender to a global sensation. Let "Cross-Border Capital Quest" guide you through the intricacies of global fundraising. By the end of this book, you won’t just be ready to take on the world; you'll be poised to financially conquer it. So, are you ready to embark on this journey?

Download or read book Contracting Frictions and Cross Border Capital Flows written by Laura Anne Lindsey and published by . This book was released on 2009 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analyzing a large sample of cross-border investments by U.S. venture capital firms, we find that average round sizes and the fraction of financing raised in the first round are larger for companies in countries with poorer legal enforcement. This evidence, which is consistent with third-best contracting where investors take larger stakes to mitigate contractual enforcement problems, suggests that the staging of investments in weak enforcement countries may be less than an optimal. We develop a contracting friction measure, based on the degree of sub-optimal staging, and find that it is negatively related to aggregate cross-border venture capital flows. We interpret the evidence as consistent with a quot;staging channelquot; through which frictions that lead to third-best contracting and sub-optimal staging limit cross-border investment.