Venture Capital Companies Research Articles

Panduan Kelayakan dan Pengukuran Kinerja Investasi PT Indo Inkubator Bisnis

The research in this thesis is motivated by the losses suffered by the venture capital company, PT Indo Inkubator Bisnis in acquiring a business partner. The purpose of this study is to formulate a guideline for the feasibility evaluation and performance measurement of the investment assets of PT Indo Incubator Bisnis. The results of the study concluded that there are six aspects that need to be evaluated before deciding to invest in a business partner. The six aspects are: legal aspects, operational aspects, market and competition aspects, key management aspects, financial aspects and valuation aspects. The results also concluded that there are four indicators that need to be routinely monitored for each business partner that has become the object of investment. The four indicators are: development of income value, development of profit value and margin level, development of dividend value, and development of share value of business units. The test results of the investment feasibility evaluation guide on the object of PT LMS conclude that this business unit is actually not a viable investment target. The results of the investment performance on the object of PT LMS also show that this investment asset does not have a good performance development.

Analisis Yuridis Kontrak Pembiayaan Modal Ventura Dengan Pola Bagi Hasil Pada Pelaku Usaha Kecil dan Menengah

In the business world, capital is an obstacle that is often faced by business actors, especially for small businesses. In order to solve this problem, the government issued regulations related to this problem. Among them through PP No. 9 of 2009 which regulates Financing Institutions and Minister of Finance Regulation No. 18/PMK.010/2012 Regarding Venture Capital Companies. In practice, this company in its capital participation with its business partner company is stated in the form of a written agreement (contract). The purpose of this study was to analyze the contents of the venture capital financing contract with a profit-sharing pattern at PT. South Sumatra SPV. Meanwhile, the problem of this research is how is the financing contract with the profit-sharing pattern applied by PMV with small and medium business actors in South Sumatra. This type of legal research is normative in nature, the legal materials used are primary, secondary and tertiary. It is carried out with a statutory approach and the conclusion of this research is that the financing contract carried out by the parties both formally and materially has fulfilled the legal requirements of a contract as regulated in Article 1320 and Article 1338 of the Civil Code Pdt and made before a Notary and signed by the business partner company and PMV represented by the management, namely the Board of Directors.

Implementation of the Decision of the Constitutional Court of the Republic of Indonesia Number 18/PUU-XVII/2019 on the Execution of Fiduciary Security

In economic activities, Banking Institutions and Non-Bank Financial Institutions including Financing Institutions play an important role in running the wheels of economic activities. Because of this important role, financial institutions then developed rapidly to support various economic activities. In Indonesia, there are three types of companies that act as financing institutions, namely financing companies, venture capital companies and infrastructure financing companies. Among the three types of financing institutions, Consumer Financing is a type of financing that provides financing for consumers who intend to buy motorized vehicles, either four-wheeled or two-wheeled, using a buying and selling scheme in installments.To guarantee timely installment payments,consumers provide fiduciary guarantees for motorized vehicles purchased with an installment system, so that if consumers do not fulfill their obligations under a consumer financing agreement, then based on a fiduciary guarantee deed, granting executive power to creditors to execute / withdraw the vehicle that is guaranteed as collateral. fudusia and auction it off to pay off consumer debt. However, the creditor's right to execute was then submitted for a judicial review to the Constitutional Court of the Republic of Indonesia by one of the debtors who broke his promise. The Constitutional Court with its decision Number 18/PUU-XVII/2019 decided not to abolish the executorial power of the fiduciary guarantee deed, as long as certain conditions were met, namely an agreement on breach of contract and the voluntary surrender of the fiduciary object. However, the decision of the Constitutional Court was then interpreted erroneously by the debtor, as if the creditor no longer had executive power. This difference in interpretation becomes a new polemic and problem at the implementation stage, especially in terms of criminal law norms.

Venturing into retail: SoGal and cherry blossom intimates

Study level/applicability Graduate or Undergraduate Entrepreneurship Majors Subject area Entrepreneurship/Venture Capital (VC) Investing Case overview The case highlights a women-founded venture capital firm that values investments in diverse entrepreneurs and an innovative retail business started by two minority entrepreneurs. Students will be asked whether the firm should invest in the venture and will also be asked to discuss models that may help transform the retail business into a VC-backed scalable technology business. Expected learning outcomes By the end of the discussion, students will be able to evaluate the feasibility and scalability of a new business venture; and evaluate the alignment between a venture capital company and a new venture. Supplementary Materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Social Implications This case highlights the lack of resources for women and minority entrepreneurs as well as the underrepresentation of minority women in the VC industry. Subject code CSS 3: Entrepreneurship

Supporting the cultural industries using venture capital: a policy experiment from South Korea

ABSTRACT This paper explores the interface between the state, the cultural industries and the financial market by focusing on a policy experiment from South Korea: using venture capital for public cultural investment. This policy experiment has significantly increased capital injection to the cultural industries and has provided a fertile ground for the industries to quickly grow. Challenging the dichotomist understanding of the state-market relations, this paper views the government’s use of venture capital as a “state-led regulated financialisation” project, in which the cultural ministry has created, expanded and “tamed” the cultural venture capital market. Venture capital companies' profit maximisation is seriously limited by not only government regulations but also strategic behaviour of private investors (cultural distributors). Yet, the paper points out that involving the financial market further complicates cultural industry policy, which already entails tension between culture and industry.

Technological fit, control rights allocation, and innovation performance of corporate venture capital-backed enterprises

ABSTRACT Based on 351 sample observations of companies listed on the Growth Enterprise Market (GEM) and Small & Medium Enterprise (SME) Board in China, this paper analyzes how the technological fit between corporate venture capital (CVC) parent companies and CVC-backed start-ups is related to CVC-backed start-ups’ innovation performance, as well as the mediating role of the allocation of control rights within CVC-backed start-ups in explaining the relationship. We find that technological fit has a positive effect on CVC-backed start-ups’ innovation inputs, while it has an inverted U-shaped relationship with start-ups’ innovation outputs. Technological fit also has a positive effect on the control rights acquired by CVCs, while the control rights allocation has no significant effect on innovation inputs, but significantly promotes innovation outputs. This suggests that the impact of technological fit on CVC-backed start-ups’ innovation performance arises from both the direct effect of technological fit and the mediating effect of the control rights acquired by CVCs.

ANALISIS STRATEGI PEMASARAN PERUSAHAAN MODAL VENTURA DI TENGAH PANDEMI COVID-19(Studi Kasus Pada PT.Sarana Lampung Ventura)

Abstract This study aims to determine the marketing strategy of venture capital companies, to remain able to print company profits and to find out the factors that can hinder the implementation of marketing strategies in the midst of the COVID-19 Pandemic. This type of research is qualitative research. the source of data in this study is the result of interviews at PT. Sarana Lampung Ventura. Data collection methods used are preliminary surveys, interviews and documentation. The result of this research is PT. SLV changes its marketing strategy. PT. SLV cooperates with Third Parties, binds cooperation agreements, conducts marketing to prospective business partners with the category of MSMEs that have potential, conducts marketing to prospective business partners remotely.

An Exploratory Study of a Chinese IT Unicorn Company

Purpose - As the research of Chinese unicorn companies is still in early stages, this paper aims to investigate the factors that influence the success of Chinese IT unicorns. Design/methodology/approach - This study is conducted as a single case study and used various sources such as interviews, internal data, press releases, IR data, etc. to enhance the reliability and validity. Findings - First, the characteristics of the start-up team, social capital, and strategies as internal factors affect the success of unicorns. Among them, the more Guanxi in social capital factors, the greater the possibility of growing into an IT unicorn company. Second, the role of venture capital and geographical location have been identified that two factors affect the success of unicorns. In the role of venture capital, it has been confirmed that the world s top-level venture capital company or a company that has been invested by “BATJ” is more likely to grow into a unicorn company in China. Research implications or Originality - This paper distinguishes between internal and external factors to explain the factors that affect the growth of unicorn companies, which lays the foundation for future research, such as the exploration of the unicorns and the development of new variables.

The Legal Reform of Venture Capital Financing Institutions As a Financing Alternative for Micro Small and Medium Enterprises

So far, the role of venture capital has not been optimal, or it can be said that while it is not working. In practice, in Indonesia, venture capital companies carry out their business like banking. That until now, in general, venture capital companies practice more as credit providers as the usual practice of providing bank loans. All requirements and conditions requested for a business partner company (actually: a debtor) are like a bank in giving credit. Therefore a legal reform of venture capital financing institutions is needed to optimize financing for micro, small, and medium enterprises to realize national development.

Factors Influencing the Allocation of Regional Sci-Tech Financial Resources Based on the Multiple Regression Model

This article uses a multiple regression model to evaluate the extent to which financial resources in various regions can be put into the most appropriate direction through the financial system or financial market. This paper uses the Tobit model to conduct empirical analysis on the input and output data of technology finance in multiple provinces and cities and explores the impact of various factors on technology finance efficiency from the perspective of three technology finance entities: high-tech enterprises, governments, and venture capital companies. Based on the DEA model and Malmquist index model in the data envelopment analysis method, this paper uses deap software to calculate the efficiency of agricultural science and technology resource allocation in Gansu Province and the efficiency of agricultural science and technology operation in many provinces in the western region. This paper divides the allocation of scientific and technological innovation resources into the ability to allocate scientific and technological innovation resources and the allocation efficiency of scientific and technological innovation resources. By constructing a performance evaluation system for the allocation of scientific and technological innovation resources, it is found that there are obvious differences in the ability and efficiency of scientific and technological innovation resource allocation in various regions. This paper proposes the selected efficiency evaluation method, the multiple regression model, which uses the data from 2012 to 2018 to evaluate the efficiency of the allocation of scientific and technological financial resources in my country, calculates the efficiency value of each region, and conducts a comparative analysis of provinces and regions. Research shows that, through multiple regression model analysis, the total technical efficiency of technology finance in Northeast China rose from 0.759 fluctuations in 2012 to 0.922 in 2018, gradually reducing the difference with the eastern and western regions. The overall promotion plays a significant role. The innovation of this article lies in the use of multiple regression models to analyze the factors affecting the allocation of regional scientific and technological financial resources, aiming to improve the efficiency of financial resource allocation.

THE ANALYSIS OF VENTURE COMPANIES’ RATIONAL INVESTMENT DECISIONS BY VALUE CRITERIUM

The purpose of this article was to investigate the methodological tools for analyzing the rationality of investment decisions of venture capital companies by value criterion. Based on this goal, the state of development of venture business with participation of the corporate market in global venture agreements, global venture financing, the size of the global median of venture financing agreements in the stages of implementation of innovative entrepreneurial idea was analyzed. The result of the article was the systematization of the theoretical and methodological tools for the analysis of the rationality of investment decisions of venture companies by the criterion of value. The main criterion for the rationality of investment decisions is the possibility of return on investment in the future. Therefore, most of the world’s venture capital firms are pursuing an absolute and relative return on investment. The most successful are investments with a threefold increase in the value of repaid capital. However, they usually take up a small proportion of such investment decisions (up to 5%). The rest balance at the limit of zero. Considering the state of development of venture business, the theoretical and methodological toolkit to substantiate investment decisions that can be based on the analysis of their rationality for venture capital companies on the criterion of value and some indicators of evaluating the effectiveness of venture financing research allowed to make the following general conclusions in the following: allows to increase its value in the future; rational investment models take into account two main criteria: profitability and riskiness; there are no clearly stated factors that determine the value of a venture capital firm; all models have some limitations and difficulties in their practical application.

СВІТОВИЙ ДОСВІД ТА СУЧАСНІ ОСОБЛИВОСТІ ФІНАНСУВАННЯ ІННОВАЦІЙНОЇ ДІЯЛЬНОСТІ В АВІАКОСМІЧНОМУ СЕКТОР

The purpose of the article is to study and substantiate the mechanisms and instruments for financing innovation and high-tech production in the aerospace sector. The object of research is the system of financing innovation. The subject of the research is the peculiarities of the world and domestic system of financing innovations in the aerospace sector. The methodological base of the work includes the fundamental provisions of theories and concepts of innovation, conceptual approaches to the financing of innovations. Research methods: theoretical generalization, analysis and synthesis, induction, deduction, classification and comparison, theoretical methods, including systems analysis, economic, statistical and graphical research methods. The article considers the theoretical foundations of financing innovation, studies the world experience of development and financing of high-tech production. It is established that the aerospace sector of the economy is the most perspective area of innovative development and ensuring the global competitiveness of countries. And as one of the most high-tech areas, it requires significant funds for further development. The main sources of funding for the aerospace sector, as well as most other innovative areas, are government agencies and funds, banks, business angels, venture funds, incubators, accelerators, private investment companies. One of the most successful companies in the field of space technology is SpaceX. Being on the verge of bankruptcy, the company managed to attract funds from the state and successfully continue its own activities. Today, SpaceX uses a variety of funding sources, ranging from government contracts and grants to venture funding from the world's leading venture capital companies and famous business angels. The paper notes that the general state of the aerospace sector of Ukraine is characterized by insufficient state funding, lack of development of private companies. Based on the results of the study, the authors substantiated the ways of implementing world experience and priority areas of activity to ensure the stable development of innovative activities in the aerospace sector. The research results can be used for scientific substantiation and further creation of appropriate conditions for the development of innovative activities, in particular, ensuring an appropriate state system for financing innovation, the development of private companies in the aerospace sector, an increase in the interest of investment companies in Ukrainian aerospace activities, the formation of international relations in the aerospace sector.

How Digital Transformation Improves Perceptions of Oil and Gas Industry

The final afternoon of the 2020 ATCE saw a wide-ranging virtual special session that covered an important but often overlooked facet of the unfolding digitalization revolution. While the rising wave of digital technology usually has been associated with production optimization and cost savings, panelists emphasized that it can also positively influence the global perception of the industry and enhance the lives of its employees. Chaired by Weatherford’s Dimitrios Pirovolou and moderated by John Clegg, J.M. Clegg Ltd., the session, “The Impact of Digital Technologies on Upstream Operations To Improve Stakeholder Perception, Business Models, and Work-Life Balance,” highlighted expertise taken from professionals across the industry. Panelists included petroleum engineering professor Linda Battalora and graduate research assistant Kirt McKenna, both from the Colorado School of Mines; former SPE President Darcy Spady of Carbon Connect International; and Dirk McDermott of Altira Group, an industry-centered venture-capital company. Battalora described the complex ways in which digital technology and the goal of sustainability might interact, highlighting recent SPE and other industry initiatives such as the GAIA Sustainability Program and reviewing the United Nations Sustainable Development Goals (SDGs). McKenna, representing the perspective of the Millennial generation, described the importance of “agile development,” in which the industry uses new techniques not only to improve production but also to manage its employees in a way that heightens engagement while reducing greenhouse-gas emissions. Addressing the fact that greater commitment will be required to remove the “tougher two-thirds” of the world’s hydrocarbons that remain unexploited, Spady explained that digital sophistication will allow heightened productivity for professionals without a sacrifice in quality of life. Finally, McDermott stressed the importance of acknowledging that the industry often has not rewarded shareholders adequately, but pointed to growing digital components of oil and gas portfolios as an encouraging sign. After the initial presentations, Clegg moderated a discussion of questions sourced from the virtual audience. While the questions spanned a range of concerns, three central themes included the pursuit of sustainability, with an emphasis on carbon capture; the shape that future work environments might take; and how digital technologies power industry innovation and thus affect public perception. In addressing the first of these, Battalora identified major projects involving society-wide stakeholder involvement in pursuit of a regenerative “circular economy” model, such as Scotland’s Zero Waste Plan, while McKenna cited the positives of CO2-injection approaches, which he said would involve “partnering with the world” to achieve both economic and sustainability goals. While recognizing the importance of the UN SDGs in providing a global template for sustainability, McDermott said that the industry must address the fact that many investors fear rigid guidelines, which to them can represent limitations for growth or worse.

Предпосылки и перспективы внедрения социальных новшеств в условиях цифровой трансформации

The article considers the prerequisites and prospects of implementation clustering in the social sector in the Republic of Belarus. An algorithm for calculating social and economic efficiency of commercialization of social innovation in a cluster formed around a technopark, a technology transfer center or a venture capital company is proposed.

ESTIMATION OF THE SECTORS OF THE INVESTMENTS MADE ON VENTURE CAPITAL COMPANIES WITH ARTIFICIAL NEURAL NETWORKS AND MULTIPLE LOGISTIC REGRESSION ANALYSIS

Venture capital companies undergo three different phases as core, growth and maturity phases as of their establishment. There are different stages in these phases in terms of providing the finance. The stage of providing finance for the first introduction of the product to the market in the core phase is called Serial A, the stage of providing the increasing finance need during the continuation of the growth is called Serial B and the stage of providing the finance needed in the growth and maturity phases is called Serial C and it continues as Serial D. In this study, it has been aimed to estimate the sectors of the venture capital companies by benefiting from the phases and amounts of the investments made by the investors to the venture capital companies. In the study, 5 sectors with the highest investment from investors have been selected and the investment data of 709 venture capital companies taking place in this sector have been benefited. Artificial Neural Networks and Multiple Logistic Regression Analysis have been used in the estimation of the sectors covering the companies with the data attained from the investment series. When the attained results have been examined, it has been determined that the results attained with Artificial Neural Networks are more successful than the results attained with Multiple Logistic Regression analysis. Jel Codes: C38, C39, C45, G24, L26

Penyelesaian Sengketa Kontrak Modal Ventura Dengan Perusahan Pasangan Usaha (PPU)

In running their business, what is often the main obstacle for business actors in developing their business is usually related to the provision of capital. In order to overcome this, the Government issued policies in the economic sector, one of which was the issuance of policies regarding Financing Institutions as regulated in Presidential Regulation Number 9 of 2009. Followed up by the Regulation of the Minister of Finance on Venture Capital Companies No. 18 of 2012. As one of the businesses in the financial services sector, its approach is not only in business but also needs to be accompanied by a legal approach (legal approch) so that its existence can be recognized in business traffic. Even though the agreement has been bound in a contract, it is still common for business partner companies to default, and even lead to disputes in court. The purpose of this study is to analyze the settlement of disputes due to default by PPU on the contents of the financing contract between the Venture Capital Company and the PPU. The research method is normative legal research, using primary legal materials, secondary legal materials and tertiary legal materials. The approach is carried out with a statutory approach (statute approach) and a conceptual approach (conceptual approach). From the results of the research it is known that the settlement of disputes due to default by PPU on the contents of the financing contract between the Venture Capital Company and PPU, the settlement of the dispute is carried out by prioritizing non-litigation mechanisms, but if no agreement is reached, the Litigation channel is used.

A Knowledge Management Challenges for Start-Ups: A Framework Proposal

The study reviews the knowledge management challenges faced by innovative start-ups founders and entrepreneurs. Knowledge management is critical for innovation, since both organisations and individuals face very specific needs: collection of a wide variety of information and data, such as market data and technical information, and a wide range of transformation of these data into applicable knowledge, in the forms of required product specifications, business model, and business strategy. In addition, the business financing and investment ecosystem (especially Banks & Venture Capitals) uses a traditional “business plan” approach for evaluating innovation companies. Furthermore, a wide range of tools (databases, online information, Collaboration Systems, Business Intelligence Systems, ERP & CRM Systems) enable information flow and supports decision making process.
 To this respect, both academic literature and business experience highlight the need to improve Knowledge Management process both for individuals and organisations engaged in Innovation management.
 The proposed framework provides academics, entrepreneurs and venture capital companies a new approach for identifying critical success factors knowledge management and further improves decision making in a changing and challenging business environment. Finally the study highlights key areas for further research.

Research on Problems and Countermeasures of Venture Capital Companies in China

Research on Problems and Countermeasures of Venture Capital Companies in China

Permohonan Pernyataan Pailit Terhadap Perusahaan Modal Ventura Yang Tidak Memiliki Izin

One of many cases in point of controversial bankruptcy was the case of bankruptcy statement and debt rescheduling of PT Brent Ventura (BV). Overall, nine applications submitted against this company have been rejected by the judges of the commercial court, it made certain assumptions that PT BV was immune from the debt rescheduling process and bankruptcy as in Decision of Commercial Court Number 50/Pdt.Sus.Pailit/2014/PN.Niaga.Jkt. Pst. The inaccuracy of the consideration of the decision became the core analysis in this normative research using case studies and conceptual approach. To summarize, the analysis result of Decision of Commercial Court Number 50/Pdt. Sus. Pailit/2014/PN.Niaga.Jkt.Pst that there were some inaccuracies in the legal considerations of the court decision. The judges considered that PT BV was a venture capital company under the supervision of the Otoritas Jasa Keuangan (OJK) and the bankruptcy petition could only be fi led by the OJK. In conclusion, the consideration of the judges was inaccurate due to such restrictions only applied to debtors whose business activities related to public interest, which was MTN publishing was not included in the scope of activities. Hence, petition of bankruptcy statement to PT BV could be filed by individual or legal entities other than OJK.

Optimizing Access to Financial Capital of Creative Economy for Startups Towards Global Competitiveness

The lack of understanding of the financial capital of the creative economy regarding non-bank financial institutions limits the growth of Indonesia’s creative economy. Strategies through policies, capital owners, creative economy players and bring together capital owners with players. The capital of the creative economy is represented on the criteria: entrepreneurial characteristics, product/service characteristics, market characteristics, and financial characteristics. The method used is a qualitative analysis and quantitative analysis which starts from data collection, data analysis, participatory discussion, drawing conclusions, formulating policies and stakeholder synergy. The startup mentoring scoring instrument is a framework for investor’s decision making to invest in the startup. 3 scoring elements of mentoring startup scoring: Product & key person with a weight of 55%, Traction with a weight of 25%, and Investment with a weight of 20%. Primary data were obtained by participatory observation, field studies, and key informant interviews through startup mentoring programs, workshops, and startup competitions. Results: Among 20% of startups pitched in front of investors, there are 11% of startups that investors interested in and got funding from a consortium of Indonesian and foreign venture capital companies. Matchmaking activities increase added value, and the implemented policy also increases added value.