Suchergebnisse

AbstractU.K. Government Venture Capital (GVC)‐backed schemes have evolved to provide more effective targeted funding for high growth potential firms, but policy designers should be cognizant of the changing external financing ecosystem when designing co‐investment schemes. We investigate the effectiveness of government backed venture capital schemes (GVCs) in funding early stage entrepreneurial ventures. Addressing fundamental issues of additionality, crowding out, economic impact, and sustainability, we discover that U.K. GVC‐backed schemes have evolved to provide more effective targeted funding for high growth potential firms. Combining primary data from a number of sources, we discover positive impacts of increase in turnover and employment in funded ventures, along with effective targeting of specific funding gaps. Significant issues remain, including a lack of liquidity in follow‐on funding and a requirement for longer time horizon in funds, as firms typically fall behind in development schedules. There is, therefore, a need for greater flexibility in GVC‐backed funds. Policy designers should be cognizant of the changing external financing ecosystem when designing co‐investment schemes.

This paper explores how government venture capitalists approve or reject financing applications. Based on longitudinal observations, complemented by interviews, documentation, and secondary data, the findings show the limited influence of the regulative and normative logics (e.g., formal guidelines and accepted behavior) on government venture capitalists' decisions. Instead, individual decisions are observed to be largely overshadowed by cognitions and heuristics, which dominate formal regulations and socially constructed group-level norms. Although official decision communications state that regulations have been followed, the evidence suggests that the cognitive logic dominates the funding decision-making process through a set of overshadowing forces that restrict the influence of the normative and regulative logics on funding decisions. This research has implications for venture financing and highlights the importance of cognitions in shaping venture capital decisions. ; fi=vertaisarvioitu|en=peerReviewed|

Abstract
We examine how government venture capital (GVC)—a specific type of political connection—affected initial public offering (IPO) valuation. Contrary to the well-recognized benefits of political connections in channeling access to financial resources in China, our analysis of 959 IPOs between 2008 and 2014 suggests that GVC backing lowers IPO valuation. This baseline effect is moderated by other sources of political connection (e.g. government ownership, state sector experience of top management team members, private sector partner status, and institutional environments). We argue that it is the negative signaling mechanism revolving around political connections that accounts for this observable pattern. This research enriches the signaling theory by uncovering signal emergence and analyzing the interactions between several signaling sources of political connection. Specifically, it contributes to a better understanding of political connections by specifying an undesirable consequence of state-led financialization, which has timely practical relevance as China's capital market is steering toward a rule-based system.

AbstractEmerging trends from the developing venture capital industries of three smaller peripheral economies (Finland, New Zealand, and Estonia), demonstrate that government policy can overcome scale and distance barriers to assist in establishing venture capital to support innovative potential high growth ventures. Eight common policy themes for successful venture capital development are: new venture stimulation; dedicated finance policy institutions; stable, internationally harmonized tax and regulations; business angel development; inward investment; international venture capital fund development; smooth pipeline of investment; effective investment exit market. Venture capital policy development themes are interconnected, requiring a holistic ecosystem approach. A blueprint for successful small peripheral economy venture capital development requires an initial phase of new venture demand stimulation and ensuing simultaneity of policies to engineer venture capital development.

AbstractBased on a dual‐differential model of the number of patent applications issued by A‐share enterprises from 2014 to 2019, this article analyzes impact of Venture Capital (VC) guided by government on company's innovation and their internal mechanisms. The results show that the number of patent applications increases after enterprises are invested directly or indirectly by the government guiding fund, indicating that this kind of VC has a positive guidance on enterprise innovation. However, after further studying by subdividing patent types, it is found that enterprises pay less attention to invention patents, which hold higher technical requirements, and focus on "quantity" rather than "quality" in patent applications. This result also reflects that the investment of VC guided by government promotes the overall enterprise innovation, but the positive effect on the innovation quality is not significant. Our article not only affirms the positive influence of VC guided by government on enterprise innovation, but also puts forward some suggestions on the management of government guiding fund.

Governmental venture capital funds (GVCs) are created by policymakers around the world to support young innovative companies (YICs) with the aim of "bridging the equity gap". In this paper, we study the heterogeneity in the design of GVC programs in Europe and identify the design features that are most effective in achieving the desired outcomes of this policy. Specifically, we focus on the probability that GVC-backed companies will receive additional funds from private venture capital investors and, ultimately, changes in their growth and innovation outcomes. We find that the choices of location, colocation, syndication and industry focus of a GVC program substantially influence the extent to which it is able to achieve such goals. Important policy implications are discussed.

AbstractUnder its specific institutional context, the public/private partnership approach needs to be interpreted differently from strategic level to operational level in China to improve the performance of venture capital guiding funds.

This dissertation is composed of three papers papers and explores different aspects of Venture Capital (VC) financing in developing Asia.The dissertation commences with the general introduction which of VC. The general introduction provides the definition, overview, and typologies of VC firms. MoreoverFurthermore, general introduction layouts the research design and structure of the dissertation.The general introduction is followed by Chapter 1 which . This chapter elaborates the conception, history, and evolution of VC, and subsequently, its transference and internationalization – with a particular focus on Asian developing countries. Chapter 1 also outlines the salient differences of the VC industry across countries based on the institutional framework in terms of screening and selection of projects, value addition, and exit mechanism of the portfolio companies.Chapter 2 investigates the exit performance of companies backed by government venture capital (GVC) compared with that of firms backed by independent venture capital (IVC) in Asia. Using a sample of 3,817 firms from 9 Asian developing countries over 26 years (1991-2017), we first show that GVC-backed firms are more likely to be financed in the early stage than IVC-backed firms. In doing so, GVC absorbs the higher probability of unsuccessful exit associated with firms financed in the early stage. In contrast, we find that in the expansion stage and later stage, GVC-backed firms perform better than IVC-backed ones. Overall, we show that GVC-backed firms outperform IVC-backed firms in terms of successful exits. We thus challenge the hypothesis of GVC underperformance tested in the existing literature on other geographical areas. Finally, we also provide evidence that mixed syndication (combination of GVC and IVC) improves the exit performance of ventures.Chapter 3 explores the investment behavior, exit performance and optimal exit route choice of Corporate Venture Capital (CVC) backed entrepreneurial companies in comparison with GVC-backed entrepreneurial ...