Download or read book To be Financed Or Not written by Carolin Häussler and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates how patent applications and grants held by new ventures improve their ability to attract venture capital (VC) financing. We argue that investors are faced with considerable uncertainty and therefore rely on patents as signals when trying to assess the prospects of potential portfolio companies. For a sample of VC-seeking German and British biotechnology companies we have identified all patents filed at the European Patent Office (EPO). Applying hazard rate analysis, we find that in the presence of patent applications, VC financing occurs earlier. Our results also show that VCs pay attention to patent quality, financing those ventures faster which later turn out to have high-quality patents. Patent oppositions increase the likelihood of receiving VC, but ultimate grant decisions do not spur VC financing, presumably because they are anticipated. Our empirical results and interviews with VCs suggest that the process of patenting generates signals which help to overcome the liabilities of newness faced by new ventures.
Download or read book The Role of Patents in Venture Capital Financing written by Daniel Hoenig and published by . This book was released on 2012 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book To be Financed Or Not written by Carolin Haeussler and published by . This book was released on 2009 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Informational Role of Patents in Venture Capital Financing written by Jerry Cao and published by . This book was released on 2014 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically examines the informational role of start-ups' patenting activities in venture capital (VC) financing, based on comprehensive patent data for VC-backed firms in the U.S. from 1976 through 2005. We find that start-ups' patenting activities before receiving VC investment increase with information asymmetry and predict entrepreneurial performance. Moreover, start-ups with patenting activities receive greater funding from more VC funds, experience longer incubation periods, and slowdown in patenting activities right after receiving VC investment. Our empirical evidence suggests that patenting activities effectively mitigate information problems between entrepreneurs and venture capitalists.
Download or read book Intellectual Property Rights and the Financing of Technological Innovation written by Carl Benedikt Frey and published by Edward Elgar Publishing. This book was released on 2013-01-01 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: 'A major contribution to the literature on the role of intellectual property rights (IPR) for the financing of innovation. The book is extensively researched and provides compelling insights for IPR managers, technology investors and policymakers trying to promote the efficiency of capital markets and national systems of innovation.' Knut Blind, Berlin University of Technology, Germany Following the transition of industrial nations to knowledge economies, the financing of technological innovation has become a central issue in public policy, corporate finance and business management. This detailed book examines the role of intellectual property rights in facilitating the financing of technological innovation as well as the role of policy makers, investors and managers in this process. The book's central finding is that public policy plays a key role in promoting the corporate disclosure of intellectual property-related information to enhance the efficiency of capital markets. This not only reduces the costs of capital for technology-driven firms but ultimately spurs innovation and economic growth. Intellectual Property Rights and the Financing of Technological Innovation will strongly appeal to research students and academics, policy makers, intellectual property professionals, equity analysts, credit rating analysts and executives in the pharmaceutical industry.
Download or read book Quality Signals The Role of Patents Alliances and Team Experience in Venture Capital Financing written by Daniel Hoenig and published by . This book was released on 2014 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Observable resources, particularly patents, alliances, and team experience, are known to impact a start-up's ability to attract venture capital financing. In this context they potentially fulfill a two-fold function: as productive assets and, likely, as signals of characteristics of a venture that are not observable at the time of assessment. In particular, patents, alliances, and team experience may serve as signals of the unobservable quality of a venture's technology. Most existing studies based on firm-level transaction data cannot disentangle signaling from productive effects. Using a conjoint-based survey among 187 European and U.S. venture capitalists, we find they rely on research alliances and, partly, on team experience as signals of technological quality. While patents impact the venture capitalists' decision making in their property rights function, we find no indication that they serve as technology quality signals.
Download or read book Global Innovation Index 2020 written by Cornell University and published by WIPO. This book was released on 2020-08-13 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Global Innovation Index 2020 provides detailed metrics about the innovation performance of 131 countries and economies around the world. Its 80 indicators explore a broad vision of innovation, including political environment, education, infrastructure and business sophistication. The 2020 edition sheds light on the state of innovation financing by investigating the evolution of financing mechanisms for entrepreneurs and other innovators, and by pointing to progress and remaining challenges – including in the context of the economic slowdown induced by the coronavirus disease (COVID-19) crisis.
Download or read book Venture Capital and the Finance of Innovation written by Andrew Metrick and published by John Wiley and Sons. This book was released on 2011-06-15 with total page 1153 pages. Available in PDF, EPUB and Kindle. Book excerpt: This useful guide walks venture capitalists through the principles of finance and the financial models that underlie venture capital decisions. It presents a new unified treatment of investment decision making and mark-to-market valuation. The discussions of risk-return and cost-of-capital calculations have been updated with the latest information. The most current industry data is included to demonstrate large changes in venture capital investments since 1999. The coverage of the real-options methodology has also been streamlined and includes new connections to venture capital valuation. In addition, venture capitalists will find revised information on the reality-check valuation model to allow for greater flexibility in growth assumptions.
Download or read book Patent Disclosure and Venture Financing written by Ali Mohammadi and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the effects of patent disclosure on corporate venture capital (CVC) investments in technology startups. Toward this end, we focus on the passage of the American Inventor's Protection Act (AIPA), which mandated public disclosure of patent applications. Theoretically, patent disclosure could have counteracting effects on the formation of CVC-startup investment relationships. Our empirical analysis finds that patent disclosure through AIPA increased the likelihood of receiving CVC investments for startups--specifically in industries where patents have higher information significance. We provide evidence that the observed pattern is mainly driven by a reduction of information constraints regarding startups with patent applications. The results have implications for policy makers and venture financing market players.
Download or read book Perspectives on Financing Innovation written by James E. Daily and published by Routledge. This book was released on 2014-05-16 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although much has been written about innovation in the past several years, not all parts of the innovation lifecycle have been given the same treatment. This volume focuses on the important first step of arranging financing for innovation before it is made, and explores the feedback effect that innovation can have on finance itself. The book brings together a diverse group of leading scholars in order to address the financing of innovation. The chapters address three key areas, intellectual property, venture capital, and financial engineering in the capital markets, in order to provide fresh and insightful analyses of current and future economic developments in financing innovation. Chapters on intellectual property cover topics including innovation in law-making, orphan business models, and the use of intellectual property to protect financial engineering innovations and developing intellectual property regimes in Brazil, Russia, India, and China. The book also covers the tax treatment of venture capital founders, the treatment of preferred stock by the Delaware Courts, asset-backed lending hedge funds, and corporate governance for small businesses after the Dodd-Frank financial reform bill. The book will be of interest to scholars, practitioners, and students in law, innovation, finance, and business.
Download or read book The Changing Frontier written by Adam B. Jaffe and published by University of Chicago Press. This book was released on 2015-08-14 with total page 441 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1945, Vannevar Bush, founder of Raytheon and one-time engineering dean at MIT, delivered a report to the president of the United States that argued for the importance of public support for science, and the importance of science for the future of the nation. The report, Science: The Endless Frontier, set America on a path toward strong and well-funded institutions of science, creating an intellectual architecture that still defines scientific endeavor today. In The Changing Frontier, Adam B. Jaffe and Benjamin Jones bring together a group of prominent scholars to consider the changes in science and innovation in the ensuing decades. The contributors take on such topics as changes in the organization of scientific research, the geography of innovation, modes of entrepreneurship, and the structure of research institutions and linkages between science and innovation. An important analysis of where science stands today, The Changing Frontier will be invaluable to practitioners and policy makers alike.
Download or read book Patents Trademarks and Their Complementarity in Venture Capital Funding written by Haibo Zhou and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the effects of patents and trademarks in the financing of start-ups through venture capitalists (VCs). Patents and trademarks signal a start-up's technological and marketing capabilities. We find that patents and trademarks not only have direct effects on venture capital financing but also have complementary effects. Start-ups that apply for both patents and trademarks yield higher VC funding than do those firms that apply for only one of the two IP rights. Furthermore, we find that the complementarity between patents and trademarks exists only in initial VC funding rounds. Our results suggest that early-phase start-ups seeking their initial VC funding do best when stressing both their technology and marketing capabilities. Accordingly, entrepreneurship policy should encourage start-ups to build both technological and marketing capabilities.
Download or read book Patent Failure written by James Bessen and published by Princeton University Press. This book was released on 2009-08-03 with total page 346 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, business leaders, policymakers, and inventors have complained to the media and to Congress that today's patent system stifles innovation instead of fostering it. But like the infamous patent on the peanut butter and jelly sandwich, much of the cited evidence about the patent system is pure anecdote--making realistic policy formation difficult. Is the patent system fundamentally broken, or can it be fixed with a few modest reforms? Moving beyond rhetoric, Patent Failure provides the first authoritative and comprehensive look at the economic performance of patents in forty years. James Bessen and Michael Meurer ask whether patents work well as property rights, and, if not, what institutional and legal reforms are necessary to make the patent system more effective. Patent Failure presents a wide range of empirical evidence from history, law, and economics. The book's findings are stark and conclusive. While patents do provide incentives to invest in research, development, and commercialization, for most businesses today, patents fail to provide predictable property rights. Instead, they produce costly disputes and excessive litigation that outweigh positive incentives. Only in some sectors, such as the pharmaceutical industry, do patents act as advertised, with their benefits outweighing the related costs. By showing how the patent system has fallen short in providing predictable legal boundaries, Patent Failure serves as a call for change in institutions and laws. There are no simple solutions, but Bessen and Meurer's reform proposals need to be heard. The health and competitiveness of the nation's economy depend on it.
Download or read book VC written by Tom Nicholas and published by Harvard University Press. This book was released on 2019-06-03 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: From nineteenth-century whaling to a multitude of firms pursuing entrepreneurial finance today, venture finance reflects a deep-seated tradition in the deployment of risk capital in the United States. Tom Nicholas’s history of the venture capital industry offers a roller coaster ride through America’s ongoing pursuit of financial gain.
Download or read book An Economic Review of the Patent System written by Fritz Machlup and published by . This book was released on 1958 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: At head of title: 85th Cong., 2d sess. Committee print. Bibliography: p. 81-86.
Download or read book How Venture Capital Works written by Phillip Ryan and published by The Rosen Publishing Group, Inc. This book was released on 2012-07-01 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explanations to the inner workings of one of the least understood, but arguably most important, areas of business finance is offered to readers in this engaging volume: venture capital. Venture capitalists provide necessary investment to seed (or startup) companies, but the startup is only the beginning, there is much more to be explored. These savvy investors help guide young entrepreneurs, who likely have little experience, to turn their businesses into the Googles, Facebooks, and Groupons of the world. This book explains the often-complex methods venture capitalists use to value companies and to get the most return on their investments, or ROI. This book is a must-have for any reader interested in the business world.
Download or read book Equity Investments Venture Capital and the Federal Role in the Availability of Financing for High technology Companies written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Economic Growth and Credit Formation and published by . This book was released on 1994 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt:
