scholarly journals Cross-Border Venture Capital Investments: What is the Role of Public Policy?

2019 ◽  
Author(s):  
Wendy Bradley ◽  
Gilles Duruflé ◽  
Thomas F. Hellmann ◽  
Karen E. Wilson
Keyword(s):  
Public Policy ◽  
Venture Capital ◽  
Capital Investments ◽  
Cross Border ◽  
Venture Capital Investments

scholarly journals Cross-Border Venture Capital Investments: What Is the Role of Public Policy?

2019 ◽  
Vol 12 (3) ◽  
pp. 112 ◽  
Author(s):  
Bradley ◽  
Duruflé ◽  
Hellmann ◽  
Wilson
Keyword(s):  
Venture Capital ◽  
High Growth ◽  
Policy Framework ◽  
Capital Investments ◽  
Innovation Ecosystem ◽  
Foreign Investors ◽  
Cross Border ◽  
The One ◽  
Venture Capital Investments

(1) Background: Cross-border venture capital (VC) investments play an important role in the scaling up of high-growth companies. However, policymakers worry that foreign VC investments transfer the majority of economic activity to the investor country. On the one hand, start-ups welcome the foreign capital, expertise, and networks that accompany cross-border investments. On the other hand, policymakers are concerned that cross-border investments predominantly benefit foreign economies and fail to develop the local entrepreneurial ecosystem. This paper describes a framework for how policymakers can develop a set of policies toward cross-border VC investments. (2) Methods: The paper examines available data and trends about the role of cross-border investing, focusing on Europe, Israel, and Canada. Then, the paper explains the underlying economic challenges and develops a policy framework. (3) Results: The analysis shows that in addition to policies that aim to attract foreign investors, there are also important policies for the development of the domestic VC market. The analysis encompasses policies that are both financial and non-financial in nature. (4) Conclusions: A core insight for policymakers is to retain a balance of initiatives, attracting foreign investors while simultaneously making sure to strengthen the country’s domestic VC industry and innovation ecosystem. The mix of policies will adjust as the domestic ecosystem matures.

scholarly journals Cross-border venture capital investments: The impact of foreignness on returns

2017 ◽  
Vol 49 (5) ◽  
pp. 575-604 ◽  
Author(s):  
Axel Buchner ◽  
Susanne Espenlaub ◽  
Arif Khurshed ◽  
Abdulkadir Mohamed
Keyword(s):  
Venture Capital ◽  
Capital Investments ◽  
Cross Border ◽  
The Impact ◽  
Venture Capital Investments

scholarly journals Partnership versus corporation: untangling the governance dilemma of corporate venture capital

2008 ◽  
Vol 6 (1-2) ◽  
pp. 263-267
Author(s):  
Gianfranco Gianfrate ◽  
Laura Zanetti
Keyword(s):  
Venture Capital ◽  
Research Note ◽  
Capital Investments ◽  
Corporate Venture Capital ◽  
Financial Returns ◽  
Corporate Venture ◽  
Venture Capital Investments

This brief research note discusses the role of organizational and governance design in a specific sector, namely the Corporate Venture Capital (CVC). This specific segment of the venture capital industry has so far proved to be at least as successful as venture capital investments carried out by “independent” or “pure” players, but corporate-sponsored initiatives tend to be more short-lived, cyclical and unstable. Unlike traditional venture capital funds, CVC established by corporations usually seek both financial returns and “strategic” benefits. We discuss the dilemma faced by corporations setting-up CVC programs in terms of governance design and ownership arrangements, showing that strategic and financial performances are unlikely to be conjointly maximized, thus leading to the inherent instability of such programs.

Sign in / Sign up

Export Citation Format

Share Document