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 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 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 National Distances International Experience and Venture Capital Investment Performance written by Yong Li and published by . This book was released on 2013 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines how the performance of cross-border venture capital investments is affected by national institutional and cultural distances between the environments of venture capitalists (VCs) and investee ventures. We propose that institutional and cultural distances will decrease VCs' effectiveness in conducting venture capital activities and negatively affect investment performance in terms of exit success, and obtain supportive evidence while controlling for geographic distance. We further analyze how VCs can use their international experience to mitigate the negative consequences of national distances. We find that while broad international experience in diverse countries attenuates the deleterious effects of institutional distance in a significant way, it does not have a similar impact in attenuating the negative effects of cultural distance.

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 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 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 Is Venture Capital a Local Business A Test of the Proximity and Network Hypotheses written by Robert Wuebker and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Venture capital (VC) investment has long been conceptualized as a local business, in which the VC's ability to source, syndicate, fund, monitor, and add value to portfolio firms critically depends on their access to knowledge obtained through their ties to the local (i.e., geographically proximate) social network. Curiously, emerging research on VC investment practice within the United States finds that cross-border investment has become increasingly common and that cross-border investment, as measured by “exits” (either initial public offering or merger & acquisition) out-performs local investment. These findings raise important questions about role of proximity in VC performance, and, more specifically, about the relationship between geographic and relational proximity in social networks. To more deeply probe these questions, we develop theory and test it by contrasting the deal and syndicate structure used to implement cross-border VC investment with those used for domestic VC investments. Evidence from 139,892 rounds of venture capital financing in the period 1980-2009 raises questions about the “local business” hypothesis and suggests that that the effects of geographic and relational proximity on VC firm performance differ. We conclude the evidence raises important questions about role of proximity in social networks, as well as the ability of VC firms to capture and lever the presumed benefits of local social network membership.

Download or read book Venture Capital written by Douglas Cumming and published by John Wiley & Sons. This book was released on 2010-04-29 with total page 604 pages. Available in PDF, EPUB and Kindle. Book excerpt: An essential guide to venture capital Studies have shown that venture capital backed entrepreneurial firms are on average significantly more successful than non-venture capital backed entrepreneurial firms in terms of innovativeness, profitability, and share price performance upon going public. Understanding the various aspects of venture capital is something anyone in any industry should be familiar with. This reliable resource provides a comprehensive view of venture capital by describing the current state of research and best practices in this arena. Issues addressed include sources of capital-such as angel investment, corporate funds, and government funds-financial contracts and monitoring, and the efficiency implications of VC investment, to name a few. Opens with a review of alternative forms of venture capital Highlights the structure of venture capital investments Examines the role venture capitalists play in adding value to their investee firms This informative guide will help you discover the true potential of venture capital.

Download or read book Global Air Network and Cross border Venture Capital Mobility written by Siqi Zheng and published by . This book was released on 2019 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using 23-year panel data of cross-border venture capital investment and global air network expansion as a natural experiment, this paper investigates the effect of air travel on cross-border capital mobility. We find international airlines have a significant facilitating effect on venture capital mobility. Based on the difference-indifferences estimate, for our research period one additional flight per day leads to an increase in VC investment between the city pair by 0.14 deals on average per year (1.08 times the mean value). The heterogeneous analys indicates that, with more air connections, emerging industries and firms in earlier developmental stages receive more investment, and non-syndication investment increases more than syndication investment. In addition, we find the effect significantly increases with geographical distance: city pairs that are far away from each other experience a larger increase in VC flow after flight connections exist. Lastly, the evidence suggests that most of this increase in capital flows happens in wealthier cities. Connections between poor cities show little effect on VC flow. The paper presents evidence on the role of the global air network in reducing information transmission cost and raising the expectation for future growth potential. All results are shown to be robust using alternative VC investment measures and the regression discontinuity method.

Download or read book Cross Border Syndication VC Experience And Investment Performance Indications In China written by Amir Reza Azimi Tabrizi and published by . This book was released on 2016 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 Network Advantage written by Henrich Greve and published by John Wiley & Sons. This book was released on 2014-02-17 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: Companies made more than 42,000 alliances over the past decade worldwide, many of which failed to deliver strong results. This book explains why and how you can seize the benefits from your business’s network of alliances with customers, suppliers and competitors. This network can provide three key advantages: · superior information · better cooperation · increased power Network Advantage shows how awareness of these three advantages can help align your portfolio of alliances with your corporate strategy to maximize advantages from existing networks and to position your business as an industry leader. This book is written by three leading authorities in the field of organizational management who work with many international corporate clients. Based on groundbreaking research and illustrative cases, it provides practical tools to help you think strategically about reconfiguring your alliances and partnerships. For business executives, consultants, and executive MBAs who want to get the most advantage from the combined power of their alliance portfolios, Network Advantage offers in-depth, practical guidance. Make it your first strategic connection to gaining competitive advantage! Companies’ connections to other firms—their network of alliances—matter for economic success. In this practical, jargon-free, evidence-based book, three experienced scholar/educators provide practical tools to understand your company’s network positioning and what to do to build webs of relationships that provide competitive advantage and economic value. —Jeffrey Pfeffer, professor, Graduate School of Business, Stanford University and co-author of The Knowing-Doing Gap. The book, Network Advantage, presents compelling ideas and is a must-read. It articulates three different perspectives to think about a firm’s network advantage and shows how a firm can maximize the value of its alliance network. The book is filled with theoretical and practical insights on the topic and offers captivating case studies to illustrate its key points. It is fun to read. I highly recommend this book. —W. Chan Kim, The BCG Chair Professor of INSEAD and the Co-director of the INSEAD Blue Ocean Strategy Institute In this eminently researched book, the authors show how executives and entrepreneurs alike can unlock the value of alliances. And the book comes with some "secrets" to success that most managers overlook. Every CEO, executive and entrepreneur who are collaborating with other firms ought to read this book. —Morten T. Hansen, Professor at University of California at Berkeley, author of Collaboration and co-author of Great by Choice. Don’t compete alone! “Network Advantage” provides a fresh perspective on how all firms can benefit from their alliances and partnerships. The authors seamlessly integrate academic research and real life examples into a practical step by step guide for unleashing the power, information and cooperation advantages available in networks. A must read for thoughtful executives and entrepreneurs alike. —Stein Ove Fenne, President, Tupperware U.S. & Canada Having the "right" business network is everything for a company's success in Asia and worldwide. With its rich cases and practical tools, this book is an indispensable guide for a thoughtful executive on how to design, build and manage a network that will make your firm globally competitive. —Yong-Kyung Lee, Former CEO of Korean Telecom, Member of the Korean National Assembly. Alliances and Partnerships, in their various formats and guises, are the bridges that allow businesses to thrive in their ecosystems by leveraging each other's strengths. The authors show how those bridges, when used appropriately, can help your firm create an alliance network to enhance your business power. The book contains many examples and models to help you shape your own alliance strategy in a world of ever increasing co-opetition. —Ricardo T. Dias, Strategic Alliances Director, Hewlett Packard (HP) Software, Asia Pacific & Japan

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 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 a Local Business A Test of the Proximity and Local Network Hypotheses written by Robert Wuebker and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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: