Title :

Industry-relatedness, geographic proximity and strategic decisions of corporate and independent venture capital-backed companies

Author(s) :

Mazza, Paolo [Auteur]
Lille économie management - UMR 9221 [LEM]
Shuwaikh, Fatima [Auteur]
Pôle Universitaire Léonard de Vinci [PULV]

Journal title :

Journal of Small Business Management

Pages :

966-1003

Publisher :

Blackwell Publishing

Publication date :

2022-08-31

ISSN :

0047-2778

English keyword(s) :

Corporate venture capital ; independent venture capital ; geographic proximity ; industry-relatedness ; exit route

HAL domain(s) :

Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

In this paper, we use the essential dichotomy between independent venture capital (IVC) and corporate venture capital (CVC) to investigate the investment mechanisms that lead venture-backed companies to take different ...
Show more >In this paper, we use the essential dichotomy between independent venture capital (IVC) and corporate venture capital (CVC) to investigate the investment mechanisms that lead venture-backed companies to take different successful exit routes, that is, an initial public offering (IPO) or an acquisition. Through an analysis of a sample of 4206 US companies, we find that CVC-backed companies have a longer investment duration and a larger investment amount than IVC-backed companies. Our analysis reveals that geographic distance and industry-relatedness are influential for the success of the company. We show that industry-relatedness is more likely to lead to an acquisition exit while geographic proximity rather fosters IPO exits.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL