Globalization of Venture Capital: A Product- and Asset-Cycle View: An Examination of Information Technology Ventures

This paper discusses an emerging heterodoxy in the academic literature on entre- preneurial technology finance that is based on the idea of "bootstrapping." Bootstrap finance is a third approach (emphasizing funding technology ventures through revenue and other non-traditional sources), alongside the orthodoxies of traditional business finance (emphasizing debt) and contemporary venture finance (emphasizing venture capital and public equity). The paper also reports the results of an original empirical study of entrepreneurial technology firms in the bioscience-related industries in the United States. The data from the study show that "unorthodox" bootstrap financing is actually the dominant kind of financing in those high technology industries. The data are analyzed to explore industry effects, regional milieux effects, and entrepreneurial-status effects on the relative mix of bootstrap finance and the three traditional sources of finance: venture capital, public equity and debt finance. The effects on firm behavior and performance of variations in financing strategy are explored, with implications for managers of entrepreneurial technology ventures and educators concerned with technology entrepreneurship.

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Development of the Information Technology Sector in India: the Role of Government

MGIMO Review of International Relations ◽

10.24833/2071-8160-2014-6-39-126-132 ◽

2014 ◽

pp. 126-132

Author(s):

I. S. Ashmyanskaya

Keyword(s):

Information Technology ◽

Venture Capital ◽

Capital Investment ◽

Indian Government ◽

Role Of Government ◽

Software Technology ◽

Technology Sector ◽

Information Technology Sector ◽

Technology Parks

In the article the author analyses the role of government in developing the information technology sector in India, specifically its influence on the three factors that determine the development of the information technology sector: human resources, launch capital and infrastructure. By developing these factors, the Indian government has succeeded in prompt formation and promotion of the information technology sector. The development of human capital is mainly realized by developing public education programs. The establishment of close ties with the Indian diaspora played a crucial role. The diaspora acted as a link for transmission to India of expertise, investment and knowledge. The availability of start-up capital, especially venture capital, is another essential component for the success of the national information technology sector. The conditions created by a government for the development of the institution of venture investment in the country will be of fundamental importance. Thanks to the measures taken by the government of India, venture capital investment has become the main form of financing for start-ups in the information technology sector in India. Developed infrastructure is also an important factor in the development of the information technology sector. In India, a developing country with a vast territory, there was a problem of infrastructure development, and software technology parks became a solution to this problem for companies in the information technology sector. Over the past 20 years, software technology parks in India has evolved so that industrial parks created almost 50% of the total exports of the IT sector in India. The demonstrated state policy can be characterized as the model of state technological entrepreneurship according to which the Indian government played the roles of regulator, producer and promoter in the information technology sector and continues to do so until the present day.

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