Venture Funds Research Articles

Human Resources, Investor Composition and Performance of Venture Funds: Focused on the Stakeholders of Venture Funds

This study aims to understand the effect of the human resources and investor composition of venture funds on fund performances in Korea. It was conducted on 235 venture funds and revealed that the fund manager retention period, retention rate and investors’ number affected fund performance. Blind funds showed the same results with overall funds, whereas project funds, performance was affected only by the fund manager retention period. Funds operated by general partners, which manpower is not major shareholders, showed the same result as the overall ones. This study provides the basis for government planning venture policies and investors establishing funds’ evaluation criteria.

Assessment of the role of innovative activity as a method of increasing the financial performance of an enterprise (on the example of textile industry enterprises)

This article analyzes the indicators of economic and innovative activity of all enterprises, including enterprises of the textile industry of the Republic of Kazakhstan, and also the volume of services for financing enterprises and their impact on the activities of enterprises was studied. The study purpose is to assess the volume of domestic enterprises’ innovative activity in the textile industry of the Republic of Kazakhstan and identify the financing sources for innovative projects, their effective directions. The scientific and practical significance of the work lies in the study of the current volume of financing of innovative services of domestic light industry enterprises and the costs of general innovation, in determining the process of increasing the profitability of enterprises by improving product quality and using innovative opportunities. The innovative measures’ correspondence with the volume of production costs, production quality, costs, market demand, adhering to certain requirements, is considered. The methodological basis of the study was the following general scientific and special methods:  the method of system-structural analysis, scientific abstraction, induction, economic-statistical, logical and comparative analysis. The research is conducted by authors on the significance of innovation in all light industry enterprises in global and national, regional economic development, the financial deficit of enterprises and the volume of financial dependence on external sources, and also analyze the amount of funds allocated for innovation in foreign companies (USA and EU), the necessary recommendations. The ability and volumes of financing the innovation activity of domestic enterprises were assessed, the effectiveness of increasing the innovative activity of enterprises was assessed, the main factors and directions that increase the innovative activity of enterprises were identified. A comparative analysis of performance indicators of enterprises providing innovative services has been made. Key words: еnterprises, financing of innovations, venture funds, multinational companies, search for investors, lending, external sources of financing, innovation activity.

Experience of evergreen financing in the field of financial technologies

Within the framework of the presented article, the author examines the features of green finance in the field of financial technologies in different countries. The focus is on countries such as the United States and China, which are actively using evergreen financing technology. Attention is focused on the implementation of financing in modern conditions using blockchain on smart devices for mobile banking, investment and loans. Currently, according to the author, financial technologies refer to innovative applications, procedures, goods or business practices in the financial services sector that consist of one or more complementary financial services and are provided as an end-to-end process via the World Wide Web. The article lists the most famous and largest evergreen funds in different countries. Compared to Chinese investors, the participation of American investors in evergreen funds is not unusual. With the rapid development of technology, American "evergreen" investors are trying to find opportunities to invest in startups, new technology companies. This article presents a comparison and analysis of the development of evergreen funding in the USA and China, which will allow applying the experience of these countries in the field of evergreen venture financing in the Russian Federation. Evergreen financing is a concept used to describe the gradual infusion of funds into a company. With evergreen financing, investors provide funds in gradual payments throughout the entire stage of development of the company or product. This is the architecture of a perpetual fund with no set end date. It often gives investors the opportunity to get out of their obligations and allows the fund manager to purchase additional funds. Investors are allowed to reinvest the funds received from realized profits. Thanks to a detailed explanation of the investment direction of the evergreen fund of the two most powerful economic powers, the public will learn more about this technology, its advantages and disadvantages.

Made in Britain: Venture Fund Boosts Synthetic Biology

Made in Britain: Venture Fund Boosts Synthetic Biology

Investment opportunities for venture funds in the economics of mobilization

Subject. The article considers the economic development of Russia and venture capital investment in the Russian Federation. Objectives. The focus is on identifying the specific nature of investing activity in Russia and venture investment to underpin the advantages of using venture funds in financing the economics of mobilization. Methods. The study rests on general scientific and special methods of scientific knowledge, such as systems and comparative analysis, functional and structural analysis. Results. The paper analyzed the main macroeconomic indicators, the indicators characterizing the resources for investment in Russia, identified the specifics of using the venture capital and problematic aspects of its development. I investigated investment opportunities for attracting venture capital in conditions of economics of mobilization. Conclusions. The analysis revealed the need to create conditions for the development of domestic economic system, increase the role of public administration, invest in replacing the imported technologies and products with domestic ones. It also defined the key role of enterprises operating in the military-industrial complex in innovative development and economic security. The venture financing in the military-industrial complex, support to high-tech enterprises will enable redirecting investments to the development of a self-sufficient high-tech system of the economics of mobilization.

Innovative business development in the EAEU countries using digital technologies

Aim. The presented study aims to substantiate the role of digital technologies as a driver of innovative business development in the Eurasian space. Tasks. The authors identify and substantiate trends in innovative business development in the Eurasian space.Methods. This study uses the methods of generalization, comparative analysis, and analysis of sources and statistics on the problems under consideration. The information basis of the study includes data published in relevant Russian and foreign publications from the list of HAC, RSCI, Web of Science, Scopus; platforms such as Crunchbase.com, Forbes, RB.ru, VC.ru, etc.; reports of the Eurasian Economic Commission.Results. The main trends of innovative business development in the Eurasian space include the creation of technoparks and high-tech parks, the development of a system of state grants and the transformation of state corporations, the creation of venture funds, and the development of business angels.Conclusions. The transformation processes in the Eurasian space are uneven among the countries. The pace of innovative development of the EAEU countries is largely influenced by the active attraction of foreign funds and international support from the UN Development Programme and other international institutions. Fundraising, the creation of a scientific and technical base, government support, and the development of digital ecosystems are the key factors and driving forces for the digital transformation of the EAEU countries. Keywords:

What Should a Startup Know About Software Customization?

Due to the expansion of new markets, accessible technologies, and venture funding, software startup growth is amazing. Moreover, startups are frequently required to adapt their software products prior to deployment at a customer's location. The authors collected a data set of 30 software projects retrieved from three software businesses using a case study research approach, with each software startup supplying a data set of 10 of its software projects tagged as failure projects in their project repository. The authors quantify and demonstrate the level of substantial software customization in startup software projects. The authors have also presented a simplified technique for quantifying customization requests for startups. Additionally, they offer tips and best practices to assist entrepreneurs in managing software customization.

ОБЕСПЕЧЕНИЕ КАЧЕСТВА ОБРАЗОВАНИЯ В УСЛОВИЯХ МОДЕЛИ «УНИВЕРСИТЕТ 3.0»

The article analyzes institutional models of ‘a modern university’, tasks, functions and features of higher education institutions in the context of the “University 3.0” concept, which envisages integration between commercialization of educational achievements, science, innovation and research in higher education institutions, as well as modernization and development of higher education system in our republic, as well as internationalization of the academic education network. The stages of change for transition to a university - entrepreneurship (3.0) depending on transformational processes observed in the current higher education system, have been justified. Opening of venture funds and banks ensuring secured benefits and introduction of a mechanism for providing special incentives to residents who deal with commercializing existing innovative developments and accommodating residents with innovative research and production centers (Technoparks) established at universities, has been recommended on the basis of advanced universities.

EU Recovery Plans, Inclusive Knowledge Economy and Overcoming Regional Disparities

The EU has adopted the Recovery and Resilience Facility (RRF) as the key instrument help to ensure that the EU, its member states, regions and local communities emerge stronger and more resilient from the pandemic crisis. Its main goal is to achieve climate neutrality by 2050, and it sets Europe on a path of digital transition, creating jobs and spurring growth in the process. The EU recovery plans should be seen as an opportunity not merely to address the post-pandemic health, social, economic and financial crisis – further exacerbated by the ongoing war in Ukraine – but primarily to develop a more inclusive and innovative institutional framework for European economies with more resilient local communities, small and medium sized firms, and high-quality public services across the EU. New forms of participation, more policy space, tools and instruments to support local and regional development strategies are necessary to establish an overall environment more hospitable to sustainable and inclusive development. Diversity of European local communities and European regions at different levels of development require tailored-made approach to realize their development potential. Institutional innovations, such as the regional public venture funds, may be the key to overcome regional disparities and build regional knowledge economies. The positive experience with the recovery, sustainable transition and inclusive knowledge economy across the European Union may serve as an important experience and encouragement to many other parts of the world, coping with the post-pandemic recovery, implementation of the Sustainable Development Goals and inclusive development.

Стратегическое развитие венчурных фондов в России

Venture funds are an element of the infrastructure that supports innovation. They make a significant contribution to the development of the national innovation system, as well as increase industrial competitiveness and high-tech production. This article describes the long-term strategic priorities for the developmentof domestic venture funds. The research relied on the method of regression analysis, as well as on the theoretical and practical concept of strategizing developed by Professor V.L. Kvint and adapted for the venture capital market. These methods made it possible to analyze the global and national strategic trends in the development of venture funds. The analysis of strategic documents provided a strategic assessment of the effect of venture capital and government R&D expenses on various indicators of the Russian economy. It also revealed the role of public and private fundings as strategic multipliers of innovative activity. The data obtained allowed the authors to formulate the strategic priorities for the development of venture funds in Russia.

Early-stage venture financing

This paper develops a theory of venture financing at the earliest stages. Ventures choose between issuing equity or a “SAFE”, which gives investors the right to a number of shares to be determined by a future equity price. Our key assumption is that between two rounds of financing the market learns information that is initially private to the entrepreneur. Higher quality types prefer a SAFE over equity for the first round of financing because under the SAFE they know that their types will be revealed to the market before the determination of the number of shares they must provide to investors. Offsetting this benefit of SAFEs is a moral-hazard (debt-overhang) cost. We find initial support for the theory in a data set of 500 financing rounds.

Causes of mortality among female sex workers: Results of a multi-country study.

SummaryBackgroundThe vast majority of studies on female sex workers (FSW) focus on causes of morbidity while data on causes of mortality are scarce. In low- and middle-income countries, where civil registry and vital statistics data are often incomplete and FSW may not be identified as such in official registries, identifying causes of mortality among FSW has proven challenging.MethodsAs part of a larger investigation on the maternal health of FSW, the current study used the Community Knowledge Approach (CKA) to identify causes of mortality among FSW in LMIC across three global regions in 2019. The CKA, validated to identify maternal, neonatal, and jaundice-associated deaths among women living in a community, was employed to identify deaths of any cause among communities of FSW. Study participants, recruited by in-country partner non-governmental organizations (NGOs) working with local FSW, provided detailed information about FSW deaths in their communities.Findings1280 FSW participated in 165 group meetings through which 2112 FSW deaths were identified. Of these reported deaths, 57·9% occurred in 2019 and 57·2% were among women aged 20-29. Causes of death included abortion (35·5%), other maternal causes (16·6%), suicide (13·6%), murder (12·5%), unclassified causes (11·6%), HIV/AIDS (7·9%), and accidents (3·2%). A total of 3659 children lost their mothers.InterpretationMaternal death comprised the leading cause of FSW mortality in our sample. This methodology can be used by local governments and NGOs to identify unrecognized patterns and clusters of FSW deaths in near-real time and urgently steer targeted preventative strategies.FundingNew Venture Fund.

Analysis of evaluating startups methods by a venture fund

The article contains research results of the economic indicators of evaluation for a project applying for venture financing. The main groups of indicators that are commonly used by venture fund’s experts to evaluate startups are analyzed; their main disadvantages are identified and systematized. Methods of comparison, general scientific methods of analysis and synthesis, induction and deduction were used in the study. Materials of the Venture Fund of the Samara region became the empirical basis for the study. Based on the study results of the practice of this fund when pre-invest evaluating startups, it’s possible to identify the presence of certain problems and extrapolate them to activities of other similar venture funds. The identification and systematization of pre-invest evaluation problems of startups that was carried out within the framework of this study will form the basis for further development of methodological tools for analyzing economic and financial prospects of innovative startups.

A topic modelling analysis of white papers in security token offerings: Which topic matters for funding?

Security token offerings (STOs), based on blockchain technology, are attracting increasing attention as an innovative alternative means of venture financing. Information about specific STOs is generally provided in white papers. This study analyses the content of white papers using a unique sample of 188 STOs from 2017 to 2021 to identify which topic is related to campaign success. We leverage latent Dirichlet allocation (LDA) topic modelling to identify the topics and themes in white papers. Nine topics are identified through LDA: company description, distributed ledger technology components, energy and green issues, financial and legal issues, artificial intelligence, and tech applications in different industries—specifically, healthcare, manufacturing and construction, education, and financial services. We find that energy and green issues represent one of the most prominent topics among all types of projects and that their disclosure is positively related to the probability of campaign success and the amount of funding raised. Another prominent topic that affects campaign outcomes is technology in the healthcare industry, reflecting wider investment trends in this sector. Our results may help entrepreneurs to improve their campaign disclosures and present new issues for policymakers regarding investments in digital tokens.

Do maritime innovation centers produce results?

Over the last decade, numerous innovation centers, accelerators, and incubators have been developed globally to facilitate startup firms within the global maritime sector or as it is a part of what is called the “Blue Economy.” Several of these industry-focused centers have a venture funding connection as part of their offerings. The intent is to spur development of new technologies to be incorporated within the maritime logistics industry or totally reinvent processes that have been in place for decades. Ideation competitions have been developed in some instances and entrepreneurs are urged to participate in programs that will provide networking opportunities and access to funding. Despite this development, the number of maritime startups that reach minimum viable product for introduction and investment remains small in comparison to other industries. This study will examine the current state of maritime innovation centers around the world and consider the value of these programs in the evolution of the industry toward digitization.

Venture vs Investment, Which Type of Financing was more Demanded by Agriculture, Forestry, and Aquaculture Sector?

COVID-19 creates uncertainty on business. SMEs in Indonesia need to take a loan to survive. Sharia banks could give credit financing based on Islamic law. This study has a purpose to observe if the total value of credit financing issued by sharia bank in Indonesia affects the total financing of agriculture, forestry, and aquaculture sectors. This study uses secondary data taken from ojk.co.id as the sample. The independent variable is credit financing use for capital venture and investment. Dependent variables are the total financing in the agricultural, forestry, and aquaculture sectors. Data is analyzed using the linear regression method. The data of each variable was also tested using a T-test to analyze if there were significant changes during the COVID-19 pandemic. Result showed that financing of capital venture has a moderate impact on the total of credit financing for agriculture and forestry sector, while investment is none. Moreover, the COVID-19 pandemic has no effect in changing the number of credits issued by sharia banks nor credit received by agriculture, forestry, and aquaculture sectors. Sharia bank implemented two pillars of maqashid, which are the protection of life and wealth in issuing credit financing. The total of credit issued by sharia banks in Indonesia affected Agriculture & forestry sectors for capital, but not for investment. Sharia bank implemented two pillars of maqashid, which are the protection of life and wealth in issuing credit financing

In Case You Haven't Heard…

A startup co‐founded by pop star Selena Gomez, Wondermind, is raising funds at a valuation of $100 million as it looks to capitalize on a boom in the mindfulness trend, Bloomberg Business reported Aug. 11. Tennis icon Serena Williams's venture fund, Serena Ventures, led the $5 million early‐stage investment round that was joined by Lightspeed Venture Partners and Sequoia Capital. Brent Saunders, the former chief executive officer of pharmaceutical company Allergan, also took part. Wondermind is focused on “mental fitness,” promoting routines to maintain mental health, similar to how you'd go to a gym to stay physically fit. Along with her mother, Hollywood producer Mandy Teefey, and Daniella Pierson, founder of the pop culture newsletter The Newsette, Gomez started Wondermind after the mother‐daughter duo met Pierson two years ago and quickly hit it off. Gomez disclosed in 2020 that she was diagnosed with bipolar disorder, and she has discussed her battles with anxiety and depression in interviews over the years. Teefey has also been candid about her struggle with attention‐deficit/hyperactivity disorder.

Gender Inequity in Entrepreneurship: Understanding Barriers, Boundary Conditions, and Opportunities

Achieving gender equity in entrepreneurship is a pressing societal concern. A growing number of studies have provided consistent evidence for gender disparities and barriers for female entrepreneurs. Yet, research also suggests that under certain conditions, tied to the unique features of the entrepreneurship context, there may also be a female advantage in venture evaluations and funding outcomes. In this symposium, we hone in on this burgeoning line of inquiry by bringing together four presentations that investigate when and why a female (dis)advantage emerges, and how certain features of this context help to mitigate gender bias. Based on a diverse array of methods (archival, experimental, and video metrics) and samples (angel investors, accelerators, and cofounders), the presentations highlight novel mechanisms underlying gender bias in entrepreneurship settings. Overall, this symposium aims to 1) offer actionable insights for recognizing and addressing gender bias in entrepreneurship and 2) identify new directions for gender research more broadly. Women Entrepreneurs Don’t Ask (For Enough) in the Entrepreneurial Negotiation Process? Presenter: Anyi Ma; Tulane U. The Effects of Masculinity Displays by Female Entrepreneurs on Venture Evaluation Presenter: Soojin Oh; Pennsylvania State U. Presenter: Aparna Joshi; Penn State Smeal College of Business How the Functional Titles of Male and Female Cofounders Affect Funding in Mixed-Gender Founding Team Presenter: Steven Gray; U. of Texas at Austin Presenter: Melanie Milovac; INSEAD “Gender Diversity Matching” Helps Ventures Raise Funding: Evidence from a Natural Experiment Presenter: Dana Kanze; London Business School Presenter: Alessandro Piazza; Rice U.

Teaching Them How to Fish? The Makings of Business Accelerators

One-third of early-stage venture financing currently goes to business accelerator-backed startups. We examine whether startups join accelerators to alleviate financing constraints or to improve human capital for long-term growth. Using a novel three-stage two-sided matching econometric framework, we quantify and compare explanatory powers of short-term financing prospects and long-term growth prospects for the revealed preference during the accelerator admission process. We find that short-term financing prospects explain 48% of the variations in the matching values, while variations of key five-year startup performance prospects can explain 96%.

Charisma: Closing the Venture Funding Gender Gap

. This paper examines how changing verbal and nonverbal behavior in female entrepreneurs can alter their prospects of being invited to meetings with investors, raising funds, potentially reducing the venture funding gap. In a field study we examine how the use of charismatic tactics in the pitch influences the likelihood of succeeding in a startup competition. In an experimental study, we investigate how the implementation of verbal and nonverbal charismatic tactics (a distinct type of verbal and nonverbal behavior), influences the funding success of female and male entrepreneurs. We investigate the impact of verbal and nonverbal charisma, separately and jointly, on the raised investment pitches using virtual humans acting as entrepreneurs. The verbal content and nonverbal aspects (e.g., gestures, tone of voice) are identical for the female and male virtual humans. This enables us to examine pure gender perception effects while controlling for effects stemming from existing gender differences in verbal and nonverbal behavior. Our results show that charisma matters as the number of charismatic tactics corresponds to a higher likelihood of succeeding into the next round of an entrepreneurial competition. Furthermore, nonverbal charisma has a strong positive effect on funding for female and male entrepreneurs, nevertheless the lack of nonverbal charisma penalizes female entrepreneurs to a greater extent than male entrepreneurs.