Download or read book Essays on Venture Capital written by Rajarishi Basantraj Nahata and published by . This book was released on 2004 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three essays on venture capital contracting written by Ibolya Schindele and published by Rozenberg Publishers. This book was released on 2005 with total page 181 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Venture Capital written by Laura Lindsey and published by . This book was released on 2004 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Entrepreneurial Finance and Venture Capital written by Sungjoung Kwon and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first essay, I examine what motivates young startup firms to rely on external intellectual property rights. While startups are better suited to exploration than exploitation, I find that approximately 10% of VC-backed companies acquire external patents while still private. They are neither low-quality firms nor firms with low patent output, lending little support to the hypothesis that patent acquisition is a response to low productivity. Rather, patent litigation risk appears to play an important role. Startup firms are significantly more likely to buy external patents when they are sued for patent infringement or exposed to a high threat of litigation. Using a difference-in-differences design around the Supreme Court decision Alice Corp. vs. CLS Bank, I show that firms whose patent litigation risks are reduced the most become significantly less likely to buy patents. Consistent with these findings and with the litigation risk preventing firms from reaching their full potential, firms buying patents are significantly less likely to go public. The second essay (with Michelle Lowry and Yiming Qian) examines mutual fund investments in private firms. Historically, a key advantage of being a public firm was broader access to capital, from a disperse group of shareholders. In recent years, such capital has increasingly become available to private firms as well. We document a dramatic increase over the past twenty years in the number of mutual funds participating in private markets and in the dollar value of these private firm investments. We evaluate several factors that potentially contribute to this trend: firms seeking extra capital to postpone public listing, mutual funds seeking higher risk-adjusted returns and initial public offering (IPO) allocations, and venture capitalists (VCs) seeking new investors to substantiate higher valuations. Results provide the strongest support for the first two factors. The final essay explores potential conflicts of interest in venture capital investments. VC firms occasionally make investments in startups founded by their own employees. The agency hypothesis predicts that this practice is motivated by conflicts of interest-VCs pursue their private benefits by financing themselves or coworkers. Alternatively, the information hypothesis posits that VCs are utilizing their networks-the connection with founders enable VCs to better evaluate the prospects of the venture. Using historical employment data in Crunchbase, I identify connections between entrepreneurs and VC firms. My findings provide strong support for the information hypothesis. Startups raising financing from connected VCs outperform their peers in the long run. VCs exhibit superior investment performance from connected deals, and these deals generate higher demand from other VCs as well. Finally, VCs making investments in connected startups are better able to raise follow-on funds. In sum, my findings suggest that, in the venture capital industry, private benefits from self-dealing is not sufficient enough to outweigh reputation concerns and/or the potential financial compensation from investing in better companies.

Download or read book Essays on International Venture Capital written by Arash Soleimani Dahaj and published by . This book was released on 2017 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: Venture Capital firms (VCs), compared with other sources of financing, are known to be a value-adding source of finance for high-growth entrepreneurial firms. Venture capital has transitioned from a local to an international subject in recent years. In this thesis , I address three important aspects of the international venture capital research area. In the first essay, I answer these questions: do venture capital firms decide to invest in a cross-border company based solely on their own international experience, or do they also decide based on other venture capital firms' behaviour in investing in that country? I address these questions by investigating vicarious and experiential learning in the venture capital context, focusing on US cross-border venture capital investment data from 2000 to 2013. The analysis indicates that, on average, venture capital firms use both experiential and vicarious learning strategies in making their cross-border investment decisions. Moreover, the effect of experiential learning is greater than that of vicarious learning, and a venture capital firm's size moderates this effect. In the second essay, I answer this question: do government venture capital funds crowd-in or crowd-out international private venture capital investment? The crowding-in effect arises when international private venture capital benefits from government subsidies through the enhancement of an entrepreneurial ecosystem and investment syndication. The crowding-out effect arises when government venture capital competes with private venture capital, bidding up deal prices and lowering returns, thereby spurring local private venture capitalists to invest internationally. I examine data from 26 countries from 1998 to 2013. The analysis indicates that, on average, more mixed-structured government venture capital investments than pure-structured government investments in a country crowds-in domestic and foreign private venture capitalists internationally. Moreover, the effect of both structures is greater on domestic private venture capitalists than on foreign ones. In the third essay, I investigate whether government venture capital practices in Canada promote a robust entrepreneurial ecosystem, by analyzing the effect of these practices on domestic and cross-border venture capital investments by private venture capital firms separately. I research the following two questions in parallel: a) Does Canadian government venture capital investment attract private venture capital firms to invest in the domestic market? b) Does Canadian government venture capital investment lead to, or prevent, domestic private venture capital firms from investing in other countries? I find that Canadian government venture capital investment has no measurable impact on private venture capital firms' decisions to invest in the domestic market. I also find that certain of the Canadian government's venture capital programs have displaced private venture capital, although with negligible impact, towards cross-border VC markets, primarily to the United States.

Download or read book Essays on Venture Capital Investment written by Marcos A. Mollica and published by . This book was released on 2006 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Venture Capital written by Timothy Dore and published by . This book was released on 2012 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: I find that the returns of the recent IPOs of a venture capitalist (VC) strong predictly subsequent fundraising and investment activity by the VC. I use this finding to study two topics.

Download or read book Essays in Venture Capital Reputation and Learning written by Farzad Pourbabaee and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In chapter 1, I study the experimentation dynamics of a decision maker (DM) in a two-armed bandit setup ([5]), where the agent holds ambiguous beliefs regarding the distribution of the return process of one arm and is certain about the other one. The DM entertains Multiplier preferences a la [27], thus I frame the decision making environment as a two player differential game against nature in continuous time. I characterize the DM's value function and her optimal experimentation strategy that turns out to follow a cut-off rule with respect to her belief process. The belief threshold for exploring the ambiguous arm is found in closed form and is shown to be increasing with respect to the ambiguity aversion index. I then study the effect of provision of an unambiguous information source about the ambiguous arm. Interestingly, I show that the exploration threshold rises unambiguously as a result of this new information source, thereby leading to more conservatism. This analysis also sheds light on the efficient time to reach for an expert opinion. The results of this chapter has been recently published in [61].In chapter 2, I introduce a dynamic model of random search where ex ante heterogeneous venture capitalists (investors) with unknown abilities match with a variety of startups (projects). There is incomplete yet symmetric information about investors' types, whereas the projects' types are publicly observable to all investors. In the unique stationary equilibrium, the matching sets, value functions and steady state distributions are endogenously determined. Interpreting the market posterior belief about the venture capitalists' ability as their reputation, I study the outcomes of the economy when the success or failure of the projects create feedback effects: innovation spillovers and reputational externalities. When there are positive spillovers from successful early stage projects to late stage business opportunities, I show increased levels of search frictions could save the market from breakdown caused by the neglect of spillover effect. When the reputational externality is at play, namely when the deal flow of each investor is inversely impacted by the distribution of other investors' reputation, I show the proportion of the high ability inactive investors is inefficiently high, and the projects suffer from early termination.

Download or read book Three Essays on Venture Capital Finance written by Jeffrey Scott Kobayahsi Peter and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Venture capital finances high-risk, high-return projects. In addition to financing, venture capitalists provide advice and expertise in management, commercialization, and development that enhance the value, success, and marketability of projects. Venture capitalists also have skills in selecting projects with potentially high returns. The first chapter investigates the contracting relationship between venture capitalists and entrepreneurs in a setting where the venture capitalist and entrepreneur contribute intangible assets (advice and effort) to a project that are non-contractible and non-verifiable. In general, in the private market equilibrium, advice provided by the venture capitalist and the number of projects funded are lower than the social optimum. Government tax and investment policies may alleviate these market failures. The impact of a capital gains tax, a tax on entrepreneur's revenue, an investment subsidy to venture capitalists, and government run project enhancing programs are evaluated. Finally, we analyze the effects of a government venture capital firm competing with private venture capital. The second chapter focuses on competition in venture capital markets. We model a three-stage game of fund raising, investment in innovative projects and input of advice and effort, where fund raising is used as an entry deterrence mechanism. We examine the impacts of taxes and subsidies on venture capital market structure. We find that a tax on venture capitalist revenue and a tax on entrepreneur revenue increase the likelihood of entry deterrence and reduce the number of projects funded in equilibrium. A subsidy on investment reduces the likelihood of entry deterrence and increases the number of projects funded. The third chapter examines the venture capitalist's choice of investment in project selection skills and investment in managerial advice. We model, separately, a private venture capitalist and a labour-sponsored venture capitalist (LSVCC) with different objectives. A LSVCC is a special type of venture capitalist fund that is sponsored by a labour union. The private venture capitalist maximizes its expected profits, while the LSVCC maximizes a weighted function of expected profits and returns to labour. Consistent with empirical evidence, the quality of projects, determined by project selection skills and managerial advice, is higher for the private venture capitalist.

Download or read book Essays in Venture Capital and Entrepreneurship written by Jochen Christian Werth and published by . This book was released on 2014 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Venture Capital Entrepreneurship and Managerial Success written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The first chapter of my dissertation examines the preferences of venture capitalists for syndication partners. Heterogeneity among syndication partners may cause efficiency loss and increase transaction costs but offer syndication partners valuable learning opportunities in the long run, suggesting a tradeoff between the short-term costs versus long-term benefits. Using data on U.S. venture capital investments, I find that venture capital firms are less likely to syndicate with partners who are different from them. The preferences for syndication partners, however, have different implications for the portfolio companies and the venture capital firms. Companies funded by heterogeneous syndicates are less likely to go public or get acquired by other companies. However, venture capital firms that co-invest with more heterogeneous partners are more likely to survive. This paper develops a new method for empirically examining the formation of syndication among multiple firms. It also addresses issues of endogeneity. In the second chapter, we develop an economic framework which articulates the impact of the quality of legal protection offered to investors on the incentives of start-up founders to recruit partners or opt for sole ownership. The theoretical analysis predicts that a positive relationship is likely to exist between the quality of the legal system and ownership concentration of start-ups. This prediction is supported by the data obtained from the Adult Population Survey of the Global Entrepreneurship Monitor project between 2001 and 2004. The third chapter finds that the number of CEOs born in summer is disproportionately small, and firms with summer born CEOs have higher market valuation. Our evidence is consistent with the "relative-age effect" due to school admissions grouping together children with age differences up to one year, with summer-born children disadvantaged throughout life by being younger than non-summer-born classmates. Those younger children.

Download or read book Three Essays in Venture Capital written by Fan Wang 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 Three Essays in Venture Capital and Intermediation written by Jeffrey Jacob Trester and published by . This book was released on 1993 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Venture Capital and Innovation written by Yue Fei and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation investigates the firm incentives to participate in entrepreneurial and innovative activities. The first chapter examines and evaluates the private sector's response to public involvement in venture capital. The second chapter studies and estimates the performance gap between government linked and private venture capitalists and the determining factors of this performance gap. The third chapter provides a theoretical framework to understand and analyze the firm-level innovation incentives in the industrial networks. In Chapter 1, titled "Can Governments Foster the Development of Venture Capital?", I examine the role of government intervention in the emergence of venture capital (VC) in China during 1999-2013 using a novel dataset and a unique policy experiment. The difference-indifference analysis shows that the central government program leads to an increase in local investment from both government and private VCs. In Chapter 2, titled "(Under)performance of government venture capitalists: Evidence and explanations", using the sample from the same source as in Chapter 1, I find that startups backed by government VCs are less likely to have Initial Public Offering (IPO) exits than private VCs. Evidence shows that the performance gap is narrowed down when the VC market develops into a more mature stage. In Chapter 3, titled "Firm Level Match under Imperfect Information Along the Global Value Chain", (joint with Rui Zhang), we develop a 1-m frictional positive assortative matching (PAM) model along the global value chain. We show the existence of multiple equilibria where a supplier could be matched to different headquarters, but at different stages on the value chain. Our model also features countervailing forces of firm innovation incentives and we predict a nonmonotonic pattern between innovation and firm productivity.

Download or read book Essays on Investment Behavior and Performance of Venture Capital Investors written by Silja Spreng and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Entrepreneurial Finance written by Hyunsung Daniel Kang and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation is focused on developing a better understanding of the technology and innovation strategies of corporations and their impacts on firm performance. I am particularly interested in corporate venture capital (CVC), which serves as a strategy for accessing external technology for corporate investors and as an alternative source of financing and complementary assets for start-ups. I have investigated the conditions under which corporate investors and start-ups achieve the strategic goals by establishing CVC ties, and on estimating the technological and financial gains created by the CVC ties. Specifically, I have concentrated on when and where CVC ties are established in order to maximize economic value. The former relates to a timing issue, whereas the latter is a space issue of CVC investments. In the first essay, I examine corporate investors' decisions to establish CVC ties and their subsequent strategic actions. Consistent with the real options perspective on CVC investments, I find that CVC investments can help corporate investors effectively search for and select future acquisition or licensing partners by reducing asymmetric information and uncertainty that may characterize markets for technology. Specifically, CVC investments facilitate the external acquisition of technology by substituting for a corporate investor's absorptive capacity, as reflected by its upstream research capabilities. CVC investments instead complement the portfolio of internally generated new products, since they allow highly productive corporate investors to shift their focus onto exploratory initiatives with the objective of selecting future technology and partners. Finally, CVC investments facilitate exploratory investments in distant technological areas that are subsequently integrated through licensing or acquisitions. These findings contribute to emerging research on the organization and financing patterns of external R & D activities. In the second essay, I investigate the nature of the relationship between technological spillovers and capital gains created by CVC investments for corporate investors. Using a simple equilibrium model and data from the global bio-pharmaceutical industry between 1986 and 2007, I find that these technological spillovers and capital gains are complements. This complementarity is enhanced when CVC investments are made in post-IPO and technologically diversified start-ups. Beyond providing a broad benchmark for heterogeneous returns on CVC investments, this study has important implications for corporate investors and start-ups. In particular, to the extent that capital gain is greatly determined by changes in the market values of start-ups, it implies that CVC investments can create value for start-ups as well as corporate investors. These mutual benefits can be greatly determined by when (e.g., post-IPO start-ups) and where (e.g., technologically diversified start-ups) CVC investments are made. In the third essay, I analyze the contextual factors that impact the probability of start-ups' obtaining financing through independent venture capitalists and corporate investors. The systematic empirical evidence based on a three-stage game theoretic model suggests that start-ups that possess better evaluated technology tend to be financed through independent venture capitalists, rather than corporate investors. In contrast, start-ups tend to be financed through corporate investors, rather than independent venture capitalists, when their intellectual properties are effectively protected and their research pipelines contain multiple products. These findings provide a theoretical basis to explain why several types of investors co-exist in the entrepreneurial financing market. Moreover, the existence of such determinants indicates that, although investors traditionally have been viewed as the powerful partner that dominates the investment decision, start-ups are also active decision makers in investment ties.

Download or read book Essays on the Venture Capital Market written by F. Katharine Warne and published by . This book was released on 1988 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: