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Corporate venture capital in the IT sector and relationships in VC syndication networks

Author

Listed:
  • Eric Braune

    (INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics)

  • Jean-Sebastien Lantz

    (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon)

  • Jean-Michel Sahut

    (IDRAC Business school Lyon - Institut pour le Développement et la Recherche d'Action Commerciale - Université de Lyon)

  • Frédéric Teulon

    (IPAG - Institut de Préparation à l'Administration et à la Gestion - IPAG Business School)

Abstract

This paper investigates the degree to which incumbent information technology (IT) companies efficiently capture information from venture capital (VC) networks. It focuses particularly on the extent to which intangible or financial resources increase the number of relationships with venture capitalists and influence the central position of IT companies within VC networks. Generalized-method-of-moments (GMM) methodology is used herein to analyze the revision of decision-making processes concerning corporate venture capital (CVC) investments conducted by IT companies. To date, the sample used in this study is the first to exclusively focus on CVC investment decisions following the burst of the IT bubble in 2001. The CVC practices of 184 IT companies over the period between 2004 and 2016 are studied, revealing that the R&D investments made by these companies, along with the amount of CVC investments made, strongly impact the number of relationships they forge and maintain and the centrality of their position in VC networks.
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(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Eric Braune & Jean-Sebastien Lantz & Jean-Michel Sahut & Frédéric Teulon, 2019. "Corporate venture capital in the IT sector and relationships in VC syndication networks," Post-Print hal-02467749, HAL.
    • Handle: RePEc:hal:journl:hal-02467749
    DOI: 10.1007/s11187-019-00264-4
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    Cited by:

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    2. Jeon, Euiju & Maula, Markku, 2022. "Progress toward understanding tensions in corporate venture capital: A systematic review," Journal of Business Venturing, Elsevier, vol. 37(4).
    3. Massimo G. Colombo & Benedetta Montanaro & Silvio Vismara, 2023. "What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions," Small Business Economics, Springer, vol. 61(1), pages 59-84, June.
    4. Cabral, Joseph J. & Kumar, M.V. Shyam & Park, Haemin Dennis, 2024. "The value of a reputation for sustaining commitment in interfirm relationships: The inclusion of corporate venture capitalists in investment syndicates," Journal of Business Venturing, Elsevier, vol. 39(3).
    5. Christoph Maus & Andrea Greven & Niklas Kurth & Malte Brettel, 2024. "How do investor characteristics of business angels and venture capitalists predict the occurrence of co-investments?," Journal of Business Economics, Springer, vol. 94(5), pages 763-811, July.
    6. Shuwaikh, Fatima & Dubocage, Emmanuelle, 2022. "Access to the Corporate Investors' Complementary Resources: A Leverage for Innovation in Biotech Venture Capital-Backed Companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    7. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    8. Tawiah, Bernard & O’Connor Keefe, Michael, 2022. "Financing a corporate venture capital program," Journal of Banking & Finance, Elsevier, vol. 135(C).

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