What is the Real Role of Corporate Venture Capital ?
AbstractTechnological innovation is not exclusive to great industrial groups. Sometimes, innovative and dynamic companies emerge in high-tech sectors and constitute a serious threat for some industry giants. However, the high reactivity of these small companies is generally impaired by problems of financing. Larger firms which want to achieve financial profits and control the most recent innovations often have recourse to corporate venture capital (CVC) as strategic mode of financing. The advantages it brings to every stage of the project (launch, refinancing and project output) compared to financing by venture capital funds will be key factors for future development. In order to gain a better understanding of the role of CVC in the financing of innovating firms, we propose in this article to analyze the various types of CVC on the basis of former studies as well as concrete examples, then to assess what boosts value creation for CVC projects.
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Bibliographic InfoPaper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-252.
Length: 12 pages
Date of creation: 29 Apr 2014
Date of revision:
Venture capital; CVC; Capital structure; Start-up; Entrepreneurship; Performance;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-05-04 (All new papers)
- NEP-CSE-2014-05-04 (Economics of Strategic Management)
- NEP-ENT-2014-05-04 (Entrepreneurship)
- NEP-INO-2014-05-04 (Innovation)
- NEP-PPM-2014-05-04 (Project, Program & Portfolio Management)
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