IDEAS home Printed from https://ideas.repec.org/a/taf/veecee/v22y2020i1p105-126.html
   My bibliography  Save this article

The role of innovation in venture capital and private equity investments in different investment phases

Author

Listed:
  • Cornelius Maas
  • Patrick Steinhagen
  • Dorian Proksch
  • Andreas Pinkwart

Abstract

Innovation is an important value lever, especially within small- and medium-sized companies. However, little research has examined its influence within the investment process of equity investment funds – a surprising circumstance since innovation could increase an investment’s value. This study provides insights into equity investment funds’ perspective on innovation throughout the various phases of the investment process. We conducted in-depth interviews with investment professionals from 30 German-based equity investment funds. Our results show that innovation’s importance depends on the strategic orientation of the equity investment fund type. In addition, our study provides an overview of the criteria, methods, and mechanisms equity investment funds use to support innovation. We show that the emphasis of many equity investment funds on innovation during the identification of investment targets is not reflected in the measures the fund later employs to support innovation processes within the portfolio company. This indicates potential for equity investment funds to be more actively involved in the supervision and management of innovation activities of their portfolio companies.

Suggested Citation

  • Cornelius Maas & Patrick Steinhagen & Dorian Proksch & Andreas Pinkwart, 2020. "The role of innovation in venture capital and private equity investments in different investment phases," Venture Capital, Taylor & Francis Journals, vol. 22(1), pages 105-126, January.
    • Handle: RePEc:taf:veecee:v:22:y:2020:i:1:p:105-126
    DOI: 10.1080/13691066.2018.1526864
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13691066.2018.1526864
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13691066.2018.1526864?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jeon, Euiju & Maula, Markku, 2022. "Progress toward understanding tensions in corporate venture capital: A systematic review," Journal of Business Venturing, Elsevier, vol. 37(4).
    2. Shehu Rabiah Na-Allah & Noor Hazlina Ahmad, 2022. "Entrepreneurial Orientation and Venture Creation in Nigerian Context: Assessing Mediating and Moderating Roles of Self-Efficacy and Entrepreneurial Support among Graduates," Sustainability, MDPI, vol. 14(9), pages 1-25, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:veecee:v:22:y:2020:i:1:p:105-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TVEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.