Investor Horizon and the Life Cycle of Innovative Firms: Evidence from Venture Capital

2017 ◽  
Vol 63 (9) ◽  
pp. 3021-3043 ◽  
Author(s):  
Jean-Noël Barrot
Keyword(s):  
Life Cycle ◽  
Venture Capital ◽  
Innovative Firms

scholarly journals What qualities do government-owned venture capital investors seek in a new venture? A comparison of investment criteria across pre-seed, seed, and expansion stage startups

2020 ◽  
Vol 51 (11) ◽  
pp. 64-76
Author(s):  
Endre Mihály Molnár ◽  
Erika Jáki
Keyword(s):  
Life Cycle ◽  
Venture Capital ◽  
Life Cycle Stage ◽  
Screening Process ◽  
Verbal Protocol Analysis ◽  
Fund Managers ◽  
Life Cycle Stages ◽  
Expansion Stage ◽  
Investment Size ◽  
Private Venture

Private venture capital (VC) investors usually do not invest in early life-cycle stage startups such as seed and pre-seed companies, since investment size typically doesn’t reach investment thresholds. The entry of governments with fund managers to venture capital markets presents seed and pre-seed companies with the opportunity to receive funding. This paper examines the main investment preferences of Hungarian government-owned venture capital investors regarding pre-seed, seed, and expansion stage startups. Verbal protocol analysis enabled examination of the screening process in real-time in all three life-cycle stages. It is found that governmental VC funds mostly value financial indicators followed by market-related qualities while private VCs value these characteristics in alternate formation. However, in the pre-seed stage, the financial acumen and capabilities of management teams form the main criteria in similarity to angel investors. Governmental VCs also greatly seek innovational value in target firms.

scholarly journals VENTURE CAPITAL FINANCING: PARTICULARITIES AND OPPORTUNITIES

2021 ◽  
Author(s):  
Daniela Bumbac ◽  
Olga Stefaniuc
Keyword(s):  
Life Cycle ◽  
Small Business ◽  
Venture Capital ◽  
Capital Markets ◽  
Bank Loans ◽  
Capital Financing ◽  
Business Enterprises

Venture capital is a way of financing generally used to support companies and small- business enterprises and innovative enterprises. It is becoming a very popular source of capital for new companies or enterprises that do not have access to capital markets, bank loans or other credit instruments. Venture capital provides financing during the various stages of the company's life cycle. For the small and medium sector, venture capital financing is one of the most accessible and efficient.

The Impact of Venture Capital Holding on the Firms Life-cycle: Evidence from IPO Firms

2020 ◽  
Author(s):  
Shima Amini ◽  
Abdul Mohamed ◽  
Armin Schwienbacher ◽  
Nicholas Wilson
Keyword(s):  
Life Cycle ◽  
Venture Capital ◽  
The Impact

A Start-Up’s R&D Stages and the Evolution of Financing Sources: Evidence from the Biotechnology Industry

2018 ◽  
Vol 8 (3) ◽  
Author(s):  
Hyunsung D Kang
Keyword(s):  
Life Cycle ◽  
Venture Capital ◽  
Biotechnology Industry ◽  
Phase Iii ◽  
Corporate Venture Capital ◽  
Entrepreneurial Finance ◽  
Life Cycle Theory ◽  
Start Up ◽  
Corporate Venture ◽  
Start Ups

AbstractThe co-existence of angel, independent venture capital (IVC), and corporate venture capital (CVC) in the entrepreneurial finance market raises a natural question of why a start-up finances its projects from one source over another. This question becomes more complicated to address because a start-up grows or declines dynamically. Using a life cycle theory of entrepreneurial finance, which suggests that a start-up uses several financing sources as it reaches certain thresholds in its life cycle accordingly, I explore this selection issue with my dataset on 113 biopharmaceutical start-ups. I find that these start-ups tend to finance their projects mostly from solely IVCs or CVCs rather than angels and syndicated investors combining IVCs and CVCs when they have more preclinical and phase I products in their R&D pipelines; and from CVCs or syndicated investors rather than angels and IVCs when they do more phase II and phase III products.

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