Venture Capital Research Articles

What drives intercity venture capital investment? A comparative analysis between multiple linear regression and random forest

Venture capital (VC) significantly contributes to the development of regional economies and fosters innovation. Analyzing the factors that influence VC investments holds key importance. This study employs two methods to ascertain the relative significance of different factors at the city level: the Lindeman, Merenda, and Gold (LMG) approach in multiple linear regression (MLR) and variable importance in random forest (RF) machine learning. The findings reveal that several factors, including economy, finance, innovation, location, and policy, significantly influence VC investments. Both the MLR and RF models highlight the preeminence of economic and financial variables, followed closely by the city’s potential for innovation. Moreover, spatial heterogeneity exists in the importance of these variables. In the economically developed and densely populated eastern regions of China, the financial environment of cities emerges as the most crucial, whereas in the central and western regions, the economy and innovation, respectively, take precedence. This research contributes to a deeper understanding of the distribution of VC investments and offers valuable insights for the development of regional policies.

The Business Plan: Al-Amin Living Lab and Industrial Park of Goat Farming

The goal of this research is to examine and assess the business plan for goat farming within the Al-Amin Living Lab and Industrial Park area, located in Kutalimbaru District, Sampe Cita Village. The specific target of this research is to find the factors that influence the development strategy of the goat farming business plan in the Al-Amin Living Lab and Industrial Park area in Kutalimbaru District, Sampe Cita Village. So that in making decisions to determine strategies that can create success in the goat farming business. This research uses a Quantitative Descriptive research approach, where this study is related to data that describes the factors and success strategies in building a goat farming business in the Al-Amin Living Lab and Industrial Park area in Kutalimbaru District, Sampe Cita Village. The data analysis used is SWOT analysis, a strategic planning method used to Evaluate Strengths, Weaknesses, Opportunities, and Threats that occur in projects or a business venture. The results of the study explain that the results of the analysis of non-financial aspects, namely market aspects, technical aspects, management aspects, legal aspects, and social aspects, the sheep fattening business is feasible to implement. The results of the analysis of financial aspects which include NPV, IRR, Net B/C, and payback period, this sheep-fattening business is feasible to implement.

Funding the Future: Venture Capital’s Role in Environmental Technological Innovations in Chinese Manufacturing SMEs

Funding the Future: Venture Capital’s Role in Environmental Technological Innovations in Chinese Manufacturing SMEs

Resetting sustainable tourism policy amid climate change: the role of green perceived value, trust, satisfaction, and purchase intention from civil servants’ perspective

ABSTRACT Front-line government civil servants play a pivotal role in purchasing green tourism products, thereby driving the low-carbon tourism market. However, limited research has focused on the role of government agencies in reducing carbon emissions, and civil servants may have varying perceptions of these legal obligations. This study applies the Cognitive-Affective-Conative theory to examine the relationships among green perceived value, trust, and satisfaction to predict civil servants' intentions. The primary goal is to assess the government's willingness to readjust subsidy tourism policies from the perspectives of Taiwan's civil servants. Using the Partial Least Squares (PLS) method to analyze 531 valid questionnaires, the study reveals the need to develop or adjust policies that combat carbon emissions and promote sustainable practices. These findings offer valuable insights for shaping governmental policies that foster green business ventures, enhance economic diversification, and advance sustainable tourism initiatives.

Do venture capital investments contribute to the achievement of the sustainable development goals?

AbstractAchieving the goals of the 2030 agenda for sustainable development requires substantial investment and depends on the ability to attract private capital to complement public resources. Venture Capital (VC) investments have traditionally focused on sectors such as technology, healthcare, and clean energy, which align closely with the enhancement of sustainable development, and VC investors can accelerate progress toward sustainability by providing expertise and mentorship to startups working on sustainable solutions. This study aims to contribute to the literature on the intersection between finance and sustainability by investigating whether higher VC investments are associated with a higher level of achievement of the Sustainable Development Goals (SDGs). Using a panel data fixed effect model on a sample covering more than 100 countries, we find that a higher level of VC activity is associated with stronger SDGs' performances, with this effect being primarily driven by economic factors. We document heterogeneous effects related to the round of investments as well as the organizational form of VC investors and the industry and country of the VC‐backed companies.

Educational capitalisation: a co-formational feminist framework for conceptualising investment in for-profit education within the racialised and gendered political economy

ABSTRACT This paper examines the processes through which education becomes valued as capital within the racialised and gendered political economy. Using the empirical case of venture capital (VC) investment in for-profit education companies, principally education technology companies and for-profit school chains, it puts forward the concept of educational capitalisation. We conceptualise it as the set of uneven processes, practices, and socio-spatial relationships through which value is extracted from educational processes and practices, and, thus, education is valued in terms of expected monetary return on investment. While our conceptualisation focuses on VC investment, this framework could be used to outline other processes of extraction and valuation in education, including private equity, investment banking, venture philanthropy, and public-private partnerships. We conclude with a co-formational feminist framework for guiding future research, policymaking, and educational decision making that considers the financial, socio-technological, learning & teaching, and political-legal aspects of educational capitalisation, with ethical considerations embedded within each of these domains.

Faith and Intimate Partner Violence in Rural South Africa

Intimate partner violence (IPV) is the most common form of violence against women and is associated with risk factors at the individual, interpersonal and societal level. Women often resort to various coping mechanisms to manage their daily lives due to the complex nature by which these factors interact. We qualitatively interviewed a cohort of rural women participating in a microfinance “plus” program in South Africa where women received loans for small-scale business ventures and received training sessions on gender norms. Our findings detailed women’s experiences of IPV and the role of faith as a coping mechanism for navigating economic hardship and abuse. Belief in a higher power was predominant in almost every interview, offering a sense of purpose and optimism for the future amid precarious circumstances. Interventions for violence prevention need to consider the important role that faith can play in strengthening women’s sense of self and preventing IPV.

Analisis Risiko Modal Ventura Syariah di Indonesia

Venture capital as an alternative financing outside credit banking. Investments made in the form of shares or convertible bonds in the long term, and aimed at business partner companies (PPU), venture capital is a collection of capital originating from investors to be managed professionally by a management company and investment in PPU. Funds invested in venture capital are investment funds that have high risk. This research uses a library or literary study approach. Data collection techniques are carried out through reading and taking notes, as well as managing previous research materials. The aim of this research is to determine the potential risks that will occur and the impact of risks on venture capital. Research results show that venture capital often contributes to helping entrepreneurs develop. So it cannot be denied that venture capital is very prone to losses for both parties.

Effective Strategies For Small Startups To Attract Venture Capital

In essence, for small startups, securing VC is a major breakthrough for growing and scaling up their business. The paper now zeroes in on the tactics that small startups can employ to capture, to a larger extent, the potential attention of VCs. The most critical strategies in order to engage VCs will be what this discussion will be based on as we turn into a collection of previous literature, case studies, and expert insights. Forge a Convincing Business Model: One solid business model is what lies at the core of how to attract VC investment. How a startup can sketch out its value proposition, revenue streams, and path to scaling. This business model does not only bring out the potential for high returns that the startup might have; it also aligns with the risk appetite of these venture capitalists. Network Building: Networking forms one of the core functions of the entire venture capital business. This paper looks into just how a network of one's own can be built and leveraged via industrial connections, along with mentors and advisors. Proper networking will result in more visibility and credibility, thus increasing the opportunity for start-ups to reach out to potential investors. Demonstrating Market Potential: For venture capitalists, the ability to demonstrate a clear market potential is very much desirable from startups. We will see how startups can present information on market size, customer segments, and competitive landscape to secure an investment interest. Making a Strong Pitch: Preparing a convincing pitch is a sure way of attracting the interest of VCs. We will look at the main components of the pitch: elevator pitch, articulating the problem and solution, definition of the market opportunity, articulation of the solution itself, business model, traction, team, and financial projections. Preparing a sound pitch can dramatically increase the chance of receiving venture capital. Apart from these, the paper also makes the target to address the critical pitfalls which startup companies often face in the form of indistinct ideas, over-promise on market size, and unrealistic projections for financials. It must help the startups, through practical recommendations and insights, reach an optimization of approaches toward venture capital and hence secure the necessary funding portions of growth and success

Patents as a quality requirement to attract venture capital for amazonian bioindustries

Patents are important elements for the protection of industrial property, in addition, studies have revealed that they can also be allies in signaling the quality of innovations with the aim of attracting private risk capital – venture capital. This is a relevant aspect because for companies to generate innovations they need to be able to expand their investments. Therefore, this study aimed to analyze patents from the perspective of quality signaling and mitigation of information asymmetry to attract venture capital investments for bioindustries in Amazonas. A qualitative bibliographical review research was used in which the results indicate that patents can be important quality signals for venture capital investors, however, when analyzing Amazonian bioindustries, a low number of patents is found, which may be a reflection of the technological level with low and medium complexity of local innovations, associated with bureaucracy and maintenance of patent records and local entrepreneurs' perception of the low added value that a patent can have for their business.

Matchmakers or chaperones? How venture capital investors facilitate startups’ corporate venture capital partnership formation through aligning and disciplining

Building upon the recent extension of resource dependence theory, this study examines how venture capital (VC) investors provide social defenses for startups by playing the role of matchmakers through the trust-based aligning effect and the role of chaperones through the power-based disciplining effect, encouraging them to form ties with established corporate venture capital (CVC) investors. We argue that the aligning effect stems from VC investors’ prior ties with CVC investors and is mitigated by the disciplining effect from their network centrality and coalition formation likelihood. In our empirical analysis of the IT industry in the United States between 2001 and 2015, we find support for our theory and hypotheses. The results also show that network centrality and coalition formation are not complementary but substitutable as coalition formation is less effective for more central VC investors.

FINANCIAL AND ECONOMIC PROSPECTS FOR CREATING GREEN ENERGY PROJECTS IN THE UKRAINE-POLAND COLLABORATION

This paper examines the economic and financial advantages of improving international collaboration between Ukraine and Poland in the development of alternative energy projects. It conducts a thorough evaluation of existing and forthcoming renewable energy generation technologies, using expert, Delphi, and methods based on statistics to identify the most promising and universally applicable solutions. The calculation of the payback period for small-scale green energy projects pays particular attention to the actual duration of the period in the case of small business ventures. The findings are summarized with a vision for the future Ukrainian-Polish cooperation in the scope of green energy cooperation and specific instruments and processes that could contribute to the success of the collaboration.The article outlines the potential approach that involves the isolation of the cooperation between Ukraine and Poland in green energy relying on the creation of investment and venture funds, public support for the manufacturing of a renewable energy component, and the establishment of non-volatile industrial complexes. Additionally, measures such as independent small alternative power plants and the initiatives for the development of the Ukrainian-Polish joint network of alternative energy are mentioned.The current war between Ukraine and Russia has drawn attention to the crucial need for energy security and diversification, making Ukraine-Poland collaboration on green energy projects all the more important. Ukraine may minimize its reliance on the Russian energy supply by focusing on renewable energy programs, while Poland can invest in sustainable energy to boost regional stability and economic progress. The article points out that the continuation and advancement of green energy initiatives require international cooperation. The paper offers detailed guidance on how the financial, economic, and technological opportunities and relations between Ukraine and Poland may be enhanced.

The Beneficial Role of Silicon Valley's Technological Innovations and Venture Capital in Strengthening Global Financial Markets

This research explores the substantial influence of Silicon Valley's technology environment on worldwide financial markets. It looks at how Silicon Valley's technology developments and venture capital improve market efficiency, boost economic growth, and help to stabilize world financial institutions. The results highlight the importance of Silicon Valley's venture capital firms in not just providing vital financing but also in strategically selecting and growing entrepreneurs to include into a larger economic network. The increase in productivity in different industries is thanks to the groundbreaking advancements in artificial intelligence and microprocessor technology in Silicon Valley. These progressions have not just improved operational effectiveness greatly but also encouraged the emergence of fresh markets. Indoor air quality challenges emphasize the need for innovation in building design. (Ashayeri, M., Piri, S., & Abbasabadi, N, 2024). Dimensionality reduction in multimodal deep learning enhances accuracy and reduces computational costs, critical for efficient AI applications. (M Bodaghi, M Hosseini, R Gottumukkala, 2024) Silicon Valley, a prime example of innovation, still showcases its significant impact on shaping present financial environments as it continues to prosper. Despite the fact that the total quantity of money invested in various countries throughout the globe is always growing, this is the case. The accomplishments of this area may serve as a model for other regions that are interested in promoting economic growth via the deployment of cutting-edge technology and creative investment methods. These places can learn from this region's successes.

The Impact of Entrepreneurship Education and Motivation on Entrepreneurial Intentions: Creativity as a Mediating Factor

This study explores the impact of entrepreneurship education and motivation on students' entrepreneurial intentions, with creativity serving as a mediating factor. The research adopts a quantitative approach, focusing on how these elements influence entrepreneurial interest among students in an entrepreneurship study program. The findings indicate that both entrepreneurship education and motivation have a direct and significant impact on students' entrepreneurial intentions. However, the study also reveals that while entrepreneurship education and motivation are crucial, their effect on creativity does not show a significant direct influence. Nonetheless, creativity does play an important indirect role, mediating the relationship between entrepreneurship education, motivation, and entrepreneurial interest. These insights can be valuable for educators and lecturers, highlighting the need to guide and inspire students not only in gaining knowledge but also in fostering a genuine interest in business management. This approach ensures that students are equipped with the necessary skills and motivation to pursue and develop their own business ventures, thereby enhancing their entrepreneurial potential.

Venture Capitalists’ Decision-Making in Hot and Cold Markets: The Effect of Signals and Cheap Talk

Venture Capitalists’ Decision-Making in Hot and Cold Markets: The Effect of Signals and Cheap Talk

Taking a Second Look at the Bait: Attention to Upside Potential Versus Downside Risk in Venture Capitalists’ Staged Investment

Taking a Second Look at the Bait: Attention to Upside Potential Versus Downside Risk in Venture Capitalists’ Staged Investment

A blueprint for success? Exploring business models of additive manufacturing ventures

Additive Manufacturing (AM) was expected to be the next great technological revolution, yet the predicted market growth has fallen short by 40%. Using a proprietary, cross-sectional data set of 350 ventures in the AM field founded between 2000 and 2017, this study analyses AM companies from a business model perspective. Specifically, we explore which value delivery and value capture mechanisms are decisive for AM venture success, measured via their operational and ownership state. We reveal that targeting the B2B market and selling via partner networks significantly increases firm survival likelihood. Further, applying a recurring revenue model increases the likelihood of an IPO. Our main contributions are two-fold: first, our research complements the business model literature by evaluating value delivery and capture in the AM entrepreneurial space, revealing that customer segments, sales channels, and revenue models are key to venture success. Second, we provide business model design guidelines to entrepreneurs as well venture capitalists in the AM field.

Network Impact on the Investment Strategy and Performance of Cross-Border Venture Capital Institutions in China

Network Impact on the Investment Strategy and Performance of Cross-Border Venture Capital Institutions in China

Government as a Source of Equity Capital for Entrepreneurs: Evidence From Entrepreneurial Exits

ABSTRACTResearch Question/IssueWe examine the effect of government equity investment on the dollar value of entrepreneurial exits spanning 50 countries over the years 1990–2015.Research Findings/InsightsData on 8532 entrepreneurial exits indicate that, relative to exits in which the investor base is purely nongovernment, private firm exits with government equity investment have higher dollar exit values. Subsample analysis suggests that the exits via initial public offerings (IPOs) drive these results with an average associated increase in IPO proceeds of $192.49 million. The positive impact of government is more pronounced when access to entrepreneurial capital is limited and for limited partnership venture capital structures.Theoretical/Academic ImplicationsResearch on government equity investment has suggested inefficiencies that lead to the deterioration of corporate value. Conversely, government equity investment can provide a valuable source of capital to some firms when investors, for example, venture capitalists, are unable or unwilling to invest. Our paper sheds light on whether government equity investment can provide value to small private firms, a subset of firms that is typically financially constrained, and how they might enhance exit value.Practitioner/Policy ImplicationsOur results suggest that governments enhance value when they provide capital in times/places where capital is scarce and government investors do not actively manage entrepreneurial firms.

Venture capitalist directors and managerial incentives

We examine the effect of board members with venture capital experience (VC directors) on executive incentives at non-venture-backed public firms. VC directors serving on the compensation committee are associated with greater CEO risk-taking incentives (vega) and pay-for-performance sensitivity (delta). These effects are more substantial if VC directors are from highly reputable VC firms. Using the change of direct flight availability to VC hub cities caused by major airline mergers and annual estimates of VC dry powder per industry as instruments, we show that these results are causal. In addition, VC directors are more focused on growth performance goals in CEO compensation contracts. We also document that prior finding of greater research intensity and innovation when VC directors serve on boards of public firms is partly explained by stronger CEO incentives instilled by such directors. Lastly, we find that having VC directors on nominating and/or governance committees is associated with a higher likelihood of forced CEO turnover.