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1

Siddiqui, Asif, Dora Marinova, and Amzad Hossain. "Impact of Venture Capital Investment Syndication on Enterprise Lifecycle and Success." International Journal of Economics and Finance 8, no. 5 (April 25, 2016): 75. http://dx.doi.org/10.5539/ijef.v8n5p75.

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The article investigates the impact of venture capital investment and investment syndication on enterprise lifecycle and success using the exit history of venture capital backed companies in Australia. It is observed that the venture capital backed companies tend to outperform those which are not while companies receiving syndicated venture capital investment tend to outperform the other venture capital backed companies. Based on the classic venture capital investment theory, we argue that venture capitalists essentially engage in superior venture selection through pre-investment screening and contribute to entrepreneurial development through post-investment monitoring and value creation. We then empirically investigate the lifecycle of the Australian venture capital backed companies from company formation to first venture capital financing round to exit. Survival duration of the ventures, investment growth and exit status are specifically analysed to capture the lifecycle. The findings show that the survival duration prior and post venture capital investment, venture capital investment growth in successive rounds and investment syndication increase the probably of success for the ventures.
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2

Siregar, Melly Moraito Trianita. "Investasi Modal Ventura Asing Kepada Start-Up Company (Perusahaan Rintisan) di Indonesia." Jurist-Diction 4, no. 4 (July 1, 2021): 1567. http://dx.doi.org/10.20473/jd.v4i4.28487.

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AbstractThis study aims to identify the position of foreign venture capital companies in Indonesia and to identify investment activities that occur between foreign venture capital companies and domestic start-ups. A venture capital company in Indonesia is one of the financing institutions. The development of the technology-based company industry or commonly known as start-up can not be separated from the role of foreign venture capital.There are different regulation enacted to foreign venture capital and domestic venture capital. One of the most striking features is the requirement for domestic venture capital to divest after ten years of investment. This study conclude that foreign venture capital investing in Indonesia considered as foreign direct investment. Therefore, all rules relating to direct investment are applied to foreign venture capital companies.Keywords: Iventure Capital; Foreign Venture Capital; Foreign Investment; Start-up Company.AbstrakPenelitian ini bertujuan untuk mengidentifikasi kedudukan perusahaan modal ventura asing di Indonesia serta untuk mengidentifikasi kegiatan investasi yang terjadi antara perusahaan modal ventura asing dengan perusahaan rintisan (start-up) dalam negeri. Perusahaan modal ventura di Indonesia merupakan salah satu lembaga pembiayaan. Perkembangan industri perusahaan berbasis teknologi atau yang biasa dikenal dengan istilah start-up tidak luput dari peran perusahaan modal ventura asing sebagai investor. Terdapat perbedaan pengaturan yang diterapkan pada perusahaan modal ventura dalam negeri dengan perusahaan modal ventura asing. Salah satu yang paling mencolok adalah keharusan bagi perusahaan modal ventura dalam negeri untuk melakukan divestasi setelah berinvestasi dalam jangka waktu sepuluh tahun. Penelitian ini menyimpulkan bahwa perusahaan modal ventura asing yang berinvestasi di Indonesia termasuk dalam penanaman modal asing. Sehingga, semua aturan yang berkaitan dengan penanaman modal secara langsung berlaku bagi perusahaan modal ventura asing.Kata Kunci: Perusahaan Modal Ventura; Perusahaan Modal Ventura Asing; Investasi Asing; Perusahaan Rintisan.
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3

Bocharova, Yu H. "VENTURE BUSINESS: STATE AND FEATURES OF DEVELOPMENT." Visnyk of Donetsk National University of Economics and Trade named after Mykhailo Tugan-Baranovsky, no. 2 (73) 2020 (2020): 60–66. http://dx.doi.org/10.33274/2079-4819-2020-73-2-60-66.

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Objective. The objective of the research is to identify the state and features of the world ven­ture business development. Methods. Following methods and techniques of knowledge are used in the process of the study: theoretical generalization and comparison, analysis and synthesis, induction and deduc­tion, grouping, and classification. Results. According to the results of the study, it is found that the number of venture funds in the world is increasing; the largest number of venture funds operates in America, including the USA; the most famous and reputable venture funds are: Intel Capital, Google Ventures, Salesforce Ventures, Comcast Ventures, Qualcomm Ventures, Cisco Investments, Santander InnoVentures, As­cension Ventures, CyberAgent Ventures, SBIInvestment, SMBC Venture Capital etc.; the volume of venture investments in the world in 2012-2019 increased significantly — almost in 6 times; venture investments are not equally distributed by stages of development of innovative entrepre- neurship — the largest volumes of venture investments in 2012-2019 are attracted to «Seed stage» and «Early stage»; it is recorded not only an increase in total venture capital, but also the average size of venture capital per project; the most attractive for venture investors are startups operat­ing in such areas as: software, fintech, pharmaceuticals and biotechnology, consumer goods and recreation; the world leader in terms of venture capital is the United States; the most attractive countries for venture investors are the United States, the United Kingdom, Canada, Hong Kong, Japan, Singapore, Australia, Germany, New Zealand and Denmark; since 2014, large companies have been venturing mainly not through their own venture funds, but by joining global venture funds — an average 30 % of the total number of projects supported by venture funds. The practical significance of the results obtained is in the possibility of their use in designing a development strategy and increasing the competitiveness of Ukraine's innovation infrastructure.
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4

Meglio, Olimpia, Arabella Mocciaro Li Destri, and Arturo Capasso. "Fostering Dynamic Growth in New Ventures through Venture Capital: Conceptualizing Venture Capital Capabilities." Long Range Planning 50, no. 4 (August 2017): 518–30. http://dx.doi.org/10.1016/j.lrp.2016.09.003.

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5

Abdou, Khaled, and Oscar Varela. "When U.S. venture capital ventures abroad." Accounting & Finance 54, no. 1 (November 2, 2012): 1–23. http://dx.doi.org/10.1111/acfi.12005.

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6

Cheesman, D. "Nothing venture... [venture capital]." IEE Review 48, no. 2 (March 1, 2002): 21–25. http://dx.doi.org/10.1049/ir:20020203.

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7

Zheng, Hui, Xuexu Piao, and Sangmoon Park. "The Role of Founder-CEO, Human Capital and Legitimacy in Venture Capital Financing in China’s P2P Lending Industry." Sustainability 13, no. 4 (February 3, 2021): 1625. http://dx.doi.org/10.3390/su13041625.

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The paper investigates factors to financing from venture capital (VC) in the Peer to Peer (P2P) lending industry of China. We focus on the signal effects of founder-CEOs, human capital, and legitimacy on venture capital investment. An important issue for entrepreneurship research is how to reduce t information asymmetry between entrepreneurs and potential investors. This paper builds on the signal theory to explain how new ventures can signal their qualities and promising businesses to potential investors to obtain external investment. By using a total of 2388 new ventures in China’s P2P lending industry, this paper analyzed the effects of factors on VC investment. We found that the founder-CEO status and the legitimacy of third-party signals are crucial to obtain the support of venture capital. We found that the CEO’s international experience has positively significant on VC financing, but the industry experience of CEOs is insignificant to get VC investment. The results indicate that new venture should pay more attention to build the ways of signaling and legitimacy of new venture to get external resource providers.
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8

Vrachovska, Mariya. "Determinants of Security in Venture Capital Transactions." Socio-Economic Analyses 14, no. 1 (June 30, 2022): 82–90. http://dx.doi.org/10.54664/pduc9212.

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In today’s modern, dynamically changing and globalized economy, venture investments as a specific technique for financial and organizational construction of investment ventures have established themselves as a significant segment of the market for economic activity. The thesis presented in this study is that, when being invested, venture capital does not bring a higher degree of uncertainty and risk in comparison to other traditional and alternative sources of capital investment. Venture investments are analyzed through the prism of the theory of information asymmetry, and, on this basis, the parameters ensuring security of the venture investor are identified.
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9

Opp, Christian C. "Venture Capital and the Macroeconomy." Review of Financial Studies 32, no. 11 (March 9, 2019): 4387–446. http://dx.doi.org/10.1093/rfs/hhz031.

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Abstract I develop a model of venture capital (VC) intermediation that quantitatively explains central empirical facts about VC activity and can evaluate its macroeconomic relevance. The impact of VC-backed innovations is significantly larger than suggested by observed aggregate venture exit valuations, even after accounting for large exposures to systematic and uninsurable idiosyncratic risks. The risk properties of venture capital play a quantitatively important role in both explaining empirical regularities and shaping the value of ventures’ contributions to economic growth. The model is analytically tractable and yields exact solutions, despite the presence of matching frictions, imperfect risk sharing, and endogenous growth. Received January 16, 2018; editorial decision November 7, 2018 by Editor Stijn Van Nieuwerburgh.
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10

Harrison, Richard T., Babangida Yohanna, and Yannis Pierrakis. "Internationalisation and localisation: Foreign venture capital investments in the United Kingdom." Local Economy: The Journal of the Local Economy Policy Unit 35, no. 3 (May 2020): 230–56. http://dx.doi.org/10.1177/0269094220924344.

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Venture capital plays a significant role in economic development through the emergence of new firms, technologies, industries and markets. This role, however, is associated with systemic uneven development regionally as both the supply of venture capital and the investment in new and growing ventures is highly concentrated regionally in the core economic regions of a country. Over the past decade, this intra-national regional concentration has been accompanied by an increasing internationalisation of the venture capital industry, as cross-border investment becomes more significant. In this paper, we explore the implications of this internationalisation for regional economic development in the UK. We conclude that the geography of venture capital in the UK has been shaped since the turn of the century by a significant increase in venture capital investments made by foreign funds, mainly in the form of co-investments with local funds. These foreign venture capital investments are primarily concentrated in London, Southeast England and East of England, which collectively attracted 82.5% of all foreign venture capital investments made to UK companies in 2017, strongly reinforcing the existing spatial concentration of venture capital investment. The paper concludes by questioning whether this increased dependency of these regions on foreign venture capital matters to regional development and draws out some of the implications for public policy.
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11

Tan, Yi, Xiaoli Wang, Jason Z. H. Lee, and Kun Shi. "Social Capital and Cross-Border Venture Capital Investments in China." International Journal of Financial Studies 12, no. 2 (April 29, 2024): 41. http://dx.doi.org/10.3390/ijfs12020041.

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In the context of the Chinese market, foreign cross-border venture capitalists have devised specific strategies to mitigate the challenges associated with the liabilities of foreignness, such as risks and information asymmetry. They have strategically leveraged social capital to not only decrease investment risk but also to influence their investment preferences and behaviors. To investigate the influence of different types of social capital on the investment decisions of cross-border venture capitalists, hypotheses are proposed and tested using regression analysis. Our research reveals several key findings in this regard. Firstly, cross-border venture capitalists with a robust structural social capital network exhibit a greater propensity to invest in early-stage companies. This suggests that well-established connections and partnerships within the Chinese entrepreneurial ecosystem provide a level of comfort and confidence when investing in ventures at their infancy. Interestingly, relational and cognitive social capital, though undoubtedly valuable, do not significantly impact the decision to make early-stage investments. Furthermore, we have observed that venture capitalists with higher levels of structural and cognitive social capital are more inclined to form syndications. Collaborative partnerships and shared knowledge networks seem to be crucial factors that drive syndication decisions. Lastly, venture capitalists endowed with substantial structural and relational social capital tend to allocate larger investment amounts, signifying the influence of business or personal relationships and network connections on the scale of their investments.
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12

Anwar, Muhammad, Thomas Clauss, and Rizwan Ullah. "New Ventures Competitiveness and Success; Do Intellectual Capital, IT Capabilities, Entrepreneurial and Market Orientation Really Matter?" Journal of Enterprising Culture 29, no. 04 (October 26, 2021): 295–323. http://dx.doi.org/10.1142/s0218495821500187.

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The failure ratio of new ventures across the globe pushes researchers towards finding solutions, but the response is not effective. This research project surveyed 297 new manufacturing enterprises from China to find factors that significantly contribute to the success of new ventures. The results indicated that intellectual capital significantly sustains performance and sustainable competitive advantage in new ventures. The relationship between intellectual capital and new venture performance is partially mediated by a sustainable competitive advantage. Information technology capabilities do not positively impact new venture performance and competitiveness. Entrepreneurial orientation has a significant influence on differentiation strategy and new venture performance. Sustainable competitive advantage does not mediate the path between entrepreneurial orientation and new venture performance, but it fully mediates the association between market orientation and new venture performance. This study recommends that new enterprises focus on intellectual capital, entrepreneurial orientation, and market orientation to acquire a sustainable position in the competitive market. New ventures should also evaluate their technological capabilities to understand why they do not play a vital role. Further implications have been stated.
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13

Barry, Christopher B. "Venture Capital." AIMR Conference Proceedings 1998, no. 5 (August 1998): 36–48. http://dx.doi.org/10.2469/cp.v1998.n5.6.

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14

Shanker, P. Udaya. "Venture Capital." SEDME (Small Enterprises Development, Management & Extension Journal): A worldwide window on MSME Studies 18, no. 4 (December 1991): 47–53. http://dx.doi.org/10.1177/0970846419910405.

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15

Nikkonen, A. I. "Venture Capital." Problems of Economic Transition 56, no. 6 (September 23, 2013): 9–14. http://dx.doi.org/10.2753/pet1061-1991560602.

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16

Hellmann, Thomas. "Venture Capital." Journal of Private Equity 1, no. 1 (August 31, 1997): 49–55. http://dx.doi.org/10.3905/jpe.1997.409665.

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17

Moore, Glenis. "Venture capital." Electronics and Power 31, no. 8 (1985): 558. http://dx.doi.org/10.1049/ep.1985.0356.

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18

Rao, V., S. Pemmaraju, and R. G. Pietrusko. "Venture Capital." Public Culture 19, no. 3 (October 1, 2007): 593–609. http://dx.doi.org/10.1215/08992363-2007-010.

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19

SHIRLEY, PHILIP. "Venture Capital." Fiscal Studies 15, no. 2 (May 1994): 98–104. http://dx.doi.org/10.1111/j.1475-5890.1994.tb00200.x.

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20

Sandham, D. "Venture capital." Communications Engineer 5, no. 3 (June 1, 2007): 48. http://dx.doi.org/10.1049/ce:20070310.

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21

Scarlata, Mariarosa. "Philanthropic Venture Capital: Venture Capital for Social Entrepreneurs?" Foundations and Trends® in Entrepreneurship 8, no. 4 (2012): 279–342. http://dx.doi.org/10.1561/0300000042.

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22

Woo, Heejin. "Foreign venture capital firms and internationalization of ventures." Multinational Business Review 28, no. 3 (January 24, 2020): 381–99. http://dx.doi.org/10.1108/mbr-09-2019-0104.

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Purpose The purpose of this study is to examine how foreign venture capital firms affect the internationalization of investee ventures and their performance. The author argues that, as influential stakeholders, foreign venture capital (VC) firms engage in strategic decisions of investee ventures and may positively contribute to ventures’ business in foreign markets. Design/methodology/approach The study examines 551 VC-backed ventures that went public between 2000 and 2014 in the US. Logistic regressions and generalized linear models are used to test hypotheses, and the two-stage approach is used to address a potential endogeneity issue. Findings In the empirical results, the author finds that foreign VC investment is positively associated with the internationalization of ventures in terms of both the likelihood of internationalization and foreign sales intensity. In addition, the author finds that internationalization and foreign sales intensity are positively associated with firm performance when a venture is backed by a foreign VC firm. Originality/value This study makes important theoretical and empirical contributions to the international entrepreneurship literature by highlighting the role of foreign VC investors on internationalization of ventures.
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23

Feng, Bing, Kaiyang Sun, Ziqi Zhong, and Min Chen. "The Internal Connection Analysis of Information Sharing and Investment Performance in the Venture Capital Network Community." International Journal of Environmental Research and Public Health 18, no. 22 (November 13, 2021): 11943. http://dx.doi.org/10.3390/ijerph182211943.

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In order to explore the internal connection between information sharing and investment performance in the venture capital network community, this study took environmental-governance start-ups as the research object and used the 2009–2020 environmental-social enterprise start-up venture capital investment events as a data sample. The successful exit rate of the venture capital portfolio and the successful listing rate of investment ventures were used as the measurement criteria. Combined with regression analysis, the relationship between information sharing and investment performance in the venture capital network community was analyzed in detail. Research shows that there are differences between the ways of information sharing in the venture capital network communities. In the regression results, all coefficients are less than 0.01. There is a positive correlation between information sharing and investment performance in the venture capital network community. With the increase in enterprise characteristic variables, the degree of enterprise risk information sharing is getting higher and higher. This ultimately leads to more and more frequent corporate investment performance and a higher possibility of acquisition. Among them, the degree of information sharing in the venture capital network community is relatively high, and venture capital companies that are supported by corporate venture capital institutions will benefit even more from listed capital. Not only was the analysis of the relationship between finance and investment in the venture capital network community pointed out in this research, but also the investment development of entrepreneurial enterprises was also provided with feasible suggestions.
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Kang, Shinhyung, and JungTae Hwang. "Moderating Factors in Distant Investment of Corporate Venture Capital." Journal of Open Innovation: Technology, Market, and Complexity 5, no. 1 (March 13, 2019): 19. http://dx.doi.org/10.3390/joitmc5010019.

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The role of venture capital as mediator and gatekeeper is well acknowledged and geographical barriers for open innovation have been questioned, but venture capital firms’ distant investments have been investigated only rarely. The strategic benefits accrued from corporate venture capital (CVC) investment depend on the selection of target ventures. Prior research, however, overlooked the incurred information cost for identifying a potential target. Considering that innovative ventures often reside in distant locations, this paper aims to investigate what factors alleviate the information cost for CVCs when identifying target ventures in distant locations. We expect a CVC’s target selection in distant locations will be limited to the ventures under a tight appropriability regime, ventures within the same industries as a CVC’s business units, and ventures with pre-existing investors that a CVC has prior ties with. The hypotheses are tested with the data on CVC investments in the U.S. between 2006 and 2013. The results empirically support the hypotheses.
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Nadhif, Fernanda. "Kepailitan Perusahaan Pasangan Usaha Berbentuk Perseroan Terbatas Terkait Penyertaan Modal oleh Perusahaan Modal Ventura." Jurist-Diction 5, no. 6 (November 30, 2022): 2193–204. http://dx.doi.org/10.20473/jd.v5i6.40123.

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AbstractThe development of a country cannot be separated from the economic sector in which capital financing is one of the important elements in a business activity. Without capital a business will not be able to run. Financial institutions exist as institutions that provide financing in the form of providers of funds or capital goods. Venture capital companies and investee companies are two legal subjects that are interconnected in venture capital financing. Financing in the form of shares and convertible bonds made by venture capital companies to investee companies has its own characteristics. As a result of equity participation that has the potential to cause debt, the partner company can be bankrupted. This research was conducted using two approaches, namely Statue Approach and conceptual approach. Which aims to analyze and provide an explanation of how debt arises in venture capital financing and the legal consequences when the Investee company is bankrupt. Keywords: Venture Capital Company; Investee Company; Shares; Convertible Bonds; Bankruptcy. AbstrakPembangunan suatu negara tidaklah dapat dipisahkan dari sektor perekonomian yang mana pembiayaan modal merupakan salah satu elemen penting di dalam sebuh kegiatan usaha. Tanpa modal sebuah usaha tidak akan dapat berjalan. Lembaga pembiayaan hadir sebagai lembaga yang melakukan pembiayaan dalam bentuk penyedia dana atau barang modal. Perusahaan modal ventura dan perusahaan pasangan usaha merupakan dua subjek hukum yang saling berhubungan didalam pembiayaan modal ventura. Pembiayaan berupa penyertaan saham dan obligasi konversi yang dilakukan oleh perusahaan modal ventura kepada perusahaan pasangan usaha memiliki karakteristiknya masing-masing. Akibat penyertaan modal yang berpotensi menimbulkan utang, menjadikan perusahaan pasangan usaha dapat dipailitkan. Penelitian ini dilakukan menggunakan dua pendekattan yaitu pendekatan perundang-undangan (Statue Approach) dan pendekatan konseptual (conceptual approach). Yang mana bertujuan untuk menganalisa dan memberikan penjelasan tentang bagaimana timbulnya utang didalam pembiayaan modal ventura beserta akibat hukumnya ketika perusahaan pasangan usaha dipailitkan. Kata Kunci: Perusahaan Modal Ventura; Perusahaan Pasangan Usaha; Saham; Obligasi Konversi; Kepailitan.
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Hadi, Nasrullah Hadi, Ibnu Al Saudi, and Abdul Syahid. "PENGARUH PENYERTAAN MODAL VENTURA TERHADAP PENDAPATAN PPU DI PALANGKA RAYA DITINJAU DARI PERSPEKTIF EKONOMI SYARIAH." Finansha- Journal of Sharia Financial Management 1, no. 2 (January 27, 2021): 13–21. http://dx.doi.org/10.15575/fsfm.v1i2.10683.

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Abstract: The existence of venture capital businesses in all provinces was introduced through the Deregulation Package Policy dated 20 December 1988 which was followed by the issuance of Presidential Decree No. 61 of 1988. Although venture capital companies in the regions are referred to as sharia business capital, they have implemented sharia principles because in their financing, the business partner companies (PPU) that will receive financing do not carry out activities that are prohibited according to Islam.The purpose of this study is to analyze the magnitude and prove the effect that venture capital participation affects the income of the business partner company (PPU) in Palangka Raya from a sharia economic perspective. The approach used in this research is a quantitative approach. This research is categorized as an associative study which aims to determine the causal relationship. The results of this study indicate that the variable of venture capital participation has an effect on and increases the income of PPU after receiving venture capital participation. Abstrak: Keberadaan usaha modal ventura di seluruh provinsi diperkenalkan melalui Kebijakan Paket Deregulasi tanggal 20 Desember 1988 yang diikuti dengan keluarnya Keputusan Presiden No. 61 Tahun 1988.. Meskipun perusahaan modal ventura di daerah meskipun belum bernama modal ventura syariah, namun sudah menjalankan prinsip-prinsip syariah karena dalam pembiayaannya, perusahaan pasangan usaha (PPU) yang akan mendapat pembiayaan tidak melakukan kegiatan yang dilarang menurut Islam. Tujuan penelitian ini untuk menganalisa besarnya dan membuktikan pengaruh bahwa penyertaan modal ventura berpengaruh terhadap pendapatan perusahaan pasangan usaha (PPU) di Palangka Raya ditinjau dari persepktif ekonomi syariah. Pendekatan yang digunakan dalam penelitian ini adalah pendekatan kuantitatif. Penelitian ini dikategorikan sebagai penelitian asosiatif bertujuan untuk mengetahui hubungan yang bersifat sebab akibat. Hasil Penelitian ini menunjukkan bahwa variabel penyertaan modal ventura berpengaruh dan lebih meningkatkan pendapatan PPU setelah menerima penyertaan modal ventura. Kata Kunci: Modal Ventura, Perusahaan Pasangan Usaha, Penyertaan
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Pandey, I. M., Rajesh Nair, Dinesh Awasthi, Kaushal Mehta, Vishnu Varshney, Rakesh Rewari, and K. Ramachandran. "Entrepreneurship and Venture Capital." Vikalpa: The Journal for Decision Makers 28, no. 1 (January 2003): 99–112. http://dx.doi.org/10.1177/0256090920030109.

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Entrepreneurship is the driver of growth. It helps creating innovative enterprises which provide foundation for building a nation's competitiveness. Enterprise creation needs risk capital. Venture capitalists provide risk capital and facilitate the development of entrepreneurship. There are several issues relating to entrepreneurship development and venture capital that deserve serious discussion. To put these issues into perspective, the Centre for Innovation, Incubation, and Entrepreneurship and Entre Club at IIMA organized a panel discussion which was coordinated by I M Pandey, Professor at Indian Institute of Management, Ahmedabad. Some of the key questions that the panel has addressed to are: What is the contribution of entrepreneurship in the economic development of India? What factors have facilitated or hindered the development of entrepreneurship in India? What role has venture capital played in fostering the growth of entrepreneurship in India? What do entrepreneurs look for from venture capitalists other than the capital in the growth of their enterprises? What are the experiences of venture capitalists and entrepreneurs vis-a-vis the interface between venture capital and entrepreneurship? The following are some important points that emerged from the panel discussion: There is a direct link between entrepreneurship and the economic growth. There is some evidence that entrepreneurship has made contribution to India's growth. Factors responsible for the slow growth of entrepreneurship and lack of innovative spirit included the faulty education system, absence of proper incentives and environment to innovate, lack of proactive and favourable government policies, non-availability of risk capital, and the Indian mindset favouring comfortable and secured career choices. Entrepreneurship is a prerequisite for building our nation's global competitiveness. There is no short-cut. The liberalization of the Indian economy and the increased access to the global capital have paved way for entrepreneurship development and for facing international competition. The role of venture capital in fuelling the growth of entrepreneurship is inevitable. Venture capitalists need to play a proactive role. The Indian experience shows that venture capital is capable of creating a facilitating environment to build entrepreneurship culture and help entrepreneurship develop as a preferred career option. Venture capitalists should play the dual role of financiers and mentors. They should facilitate the networking of entrepreneurs with customers, distributors, financial institutions, consultants, etc. Efforts should be made by public and private sectors to create critical mass of venture capital funds, especially to finance start-ups and ventures of the first-time entrepreneurs. The education system in India should focus on developing entrepreneurship skills and risk-taking abilities of students.
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Wang, Li, and Marshall Shibing Jiang. "Effect of power source mismatch on new venture performance." Chinese Management Studies 12, no. 4 (November 5, 2018): 833–46. http://dx.doi.org/10.1108/cms-07-2018-0589.

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PurposeThe venture capital syndication brings in various resources for the portfolio firms, which positively affects those firms’ performance, while conflicts within syndicates also have negative impact on the portfolio firms’ performance. This study aims to explore the two opposite effects of the venture capital syndication on the portfolio firms’ operations. Drawing on Ma et al.’s (2013) power source match perspective, the authors examine the effect of (mis)match of power source between ownership and status on the portfolio firms’ performance.Design/methodology/approachThe study uses panel data from two professional databases containing information about the venture capital-backed firms in China. The fixed effect model is applied to analyze the data.FindingsThis study found that power source match in the venture capital syndicates works positively on the portfolio firms’ performance. This positive relationship is weakened when there is ownership-dominated power source mismatch present.Practical implicationsThis study suggests that when new ventures search for venture capital, it is better to allocate greater ownership to the venture capital providers with high-status power, so that ownership power and status power can have a proper match to increase the coordination among venture capital providers, thereby helping portfolio firms perform better.Originality/valueThis study looks into the performance of a portfolio firm when there is power a (mis)match in a venture capital syndication, extending the current literature in this area where only the performance of the venture syndications is examined.
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Dr.V. Santhi, Dr V. Santhi, and S. Revathy S. Revathy. "Venture Capital Practices in India." International Journal of Scientific Research 1, no. 7 (June 1, 2012): 103–8. http://dx.doi.org/10.15373/22778179/dec2012/40.

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Lekpek, Ahmedin. "Venture capital and obstacles to the venture capital investments." Ekonomski pogledi 18, no. 4 (2016): 37–51. http://dx.doi.org/10.5937/ekopog1604037l.

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31

Varshney, Vishnu. "Nurturing a Venture: A Venture Capitalist's Perspective." Vikalpa: The Journal for Decision Makers 28, no. 2 (April 2003): 83–87. http://dx.doi.org/10.1177/0256090920030207.

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The concept of venture capital originated in the US in 1946. A number of new technologies which could be commercially exploited had come up after the Second World War and funds given for such ventures were called venture capital investment. Though the venture capital movement has been in existence for more than three decades in India, it has only recently gained momentum. New ventures found it difficult to get funding from the banks as they did not have any collateral to offer. Hence, venture capital industry was started in India to fund such enterprises. Gujarat Venture Finance Limited (GVFL) was set up by the World Bank in 1990. Till date, it has funded 56 companies from all over the country. GVFL supports only technology-oriented companies. Funding is provided in stages. The money given at the seed or early stage is called angel funding. This paper documents how GVFL funded and nurtured a venture called Permionics which was involved in manufacturing an innovative water filter and helped it to grow into a commercially viable enterprise. This was not smooth sailing and the venture did not take off initially as the project required a lot of product innovation and market research for its feasibility. However, the venture capitalist persisted with the efforts in making the venture successful as he had faith in the product. Thus, he went beyond hand-holding and helped in the company's promotional effort, getting expert advice, solving internal disputes, coordinating strategic tie-ups, etc. After some trial and error, the product was finally relaunched and was a great success. The main conclusions emerging from this paper are: A venture capitalist's contribution is not just funding an enterprise but also seeing to its proper functioning. A venture capitalist provides necessary linkages to the entrepreneur for the growth of the enterprise. A venture capitalist not only provides moral support but also helps in forming the company. He is more of a partner than an outsider. A good venture capitalist sees the enterprise through its ups and downs until it becomes a commercially successful venture.
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32

Jakusonoka, Ingrida, and Kristine Zarina. "ATTRACTIVENESS OF LATVIAN, LITHUANIAN AND ESTONIAN VENTURE CAPITAL MARKETS FOR INTERNATIONAL INVESTORS." Science and Studies of Accounting and Finance Problems and Perspectives 12, no. 1 (December 19, 2018): 20–27. http://dx.doi.org/10.15544/ssaf.2018.03.

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Business start-ups, small and medium sized companies face financial difficulties to finance their innovative activities, which hinders innovative products from commercialization. This mainly results from the high risks and information asymmetries involved in such projects. Standard debt financers are reluctant to take these risks, besides the young enterprises lack collateral to receive the credit. However, the risk tolerance for investors differs as well. One of the alternatives for bank loans is venture capitalists, who rather become partners than creditors of young, innovative companies with growth potential. Particularly venture capital or the so-called “smart money” is what financially supports such business ventures, provides funding for technological transfer and commercialization. The authors of the present paper have chosen to examine and compare the venture capital attraction possibilities in the Baltic States using Venture Capital and Private Equity Country Attractiveness Index (by Groh et al.) data for 2012-2018. Venture capital market development is currently a very topical issue for the Latvian government, taking into consideration the critical importance of venture capital for financing innovation. Becoming the leader in the venture capital sector and No. 1 choice of start-up companies in the Baltics are now the objectives of the government of Latvia. It was therefore relevant and important to compare venture capital attraction possibilities in Latvia, Estonia and Lithuania to see and analyse in which aspects Latvia lags behind its neighbouring countries and in which it succeeds. The paper compares the six main factors or key drivers which determine the attractiveness of venture capital markets. According to Groh et al. (2016), these factors are: 1) Economic Activity; 2) Depth of Capital Market; 3) Taxation; 4) Investor Protection & Corporate Governance; 5) Human & Social Environment and 6) Entrepreneurial Culture & Deal Opportunities. However, the results of the research reveal that the main problems for international investor attraction in the Baltic States are underdeveloped capital markets and low economic activity. Latvia, unfortunately, is the most unattractive for international venture capital investors. Nevertheless, it has experienced the fastest growth during six years, which means that there is potential for becoming a leader in the venture capital sector. The present paper reveals the aspects to be improved for becoming more attractive for venture capital investments.
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Elliott, Edgar, Lois D’Costa, and James Bamford. "Agreeing to disagree: structuring future capital investment provisions in joint ventures." Journal of World Energy Law & Business 13, no. 1 (March 1, 2020): 12–22. http://dx.doi.org/10.1093/jwelb/jwaa002.

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Abstract Prior to entering into any joint venture agreement (JVA), dealmakers should be aware of the options available to resolve future investment disagreements. There are three broad capital investment structures commonly found in joint ventures: (i) standard passmark rules; (ii) non-consent/opt-out; and (iii) sole risk. Within each category, deal practitioners have numerous options to tailor capital investment structures. As much as possible, deal practitioners should contemplate the most likely areas of disagreement, and then tailor the capital investment structures appropriately to ensure that the joint ventures (JV) can manage capital investment decisions in an efficient, value-preserving way. While it is impossible to establish a formula to determine which specific contractual structures will best accommodate future capital investments in a given JV, companies should weigh various factors to inform their position. We reviewed 40 JVAs to understand various capital investment mechanics and how they differ based on the nature of the venture and owner context. Our research found an extremely diverse array of creative structural work-arounds to address different owner appetites to make future capital investments. The purpose of this article is to describe, illustrate and provide benchmarks on different mechanics and contractual terms found in joint venture agreements, and to offer guidance as to which future capital investment mechanics should be included in venture agreements.
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PIACENTINO, GIORGIA. "Venture Capital and Capital Allocation." Journal of Finance 74, no. 3 (March 25, 2019): 1261–314. http://dx.doi.org/10.1111/jofi.12756.

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35

Kang, Shinhyung. "The impact of corporate venture capital involvement in syndicates." Management Decision 57, no. 1 (January 14, 2019): 131–51. http://dx.doi.org/10.1108/md-01-2017-0024.

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Purpose Prior literature indicates that syndication enhances the likelihood of ventures’ successful exits; however, it has neglected the differences among venture capital (VC) investor types. In fact, there are various types of VC investors with distinctive objectives. Therefore, by focusing on ventures backed by corporate venture capital (CVC) and independent venture capital (IVC) investors, the purpose of this paper is to investigate how the relative influence among a heterogeneous group of VC investors in a syndicate affects the likelihood of the venture’s successful exit. Design/methodology/approach A sample of 1,121 US ventures that received funding from both CVC and IVC investors during 2001 and 2013 are collected. Then, a Cox proportional hazards model is applied to analyze the likelihood of a successful exit (i.e. initial public offering or acquisition). Findings The relative reputation of CVC investors vis-à-vis their IVC co-investors in a syndicate is negatively associated with the likelihood of the venture’s successful exit. This negative relationship is exacerbated when CVC investors are geographically close to the focal venture, and it is weakened when CVC investors syndicate with IVC investors that they have collaborated in the past. Originality/value First, this paper advances VC syndication literature by demonstrating that syndication does not positively affect the likelihood of a venture’s successful exit unless key syndicate members seek to pursue going public or acquisition strategy. Second, this paper also reveals when CVC is beneficial from the ventures’ perspective. CVC participation facilitates ventures’ successful exits as long as reputable IVC investors are present in the syndicate. Third, this study contributes to the multiple agency perspective by showing that formal governance mechanisms affect ventures’ conduct and performance as well as informal sources of power.
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Naveen Negi. "Role of Venture Capital in Promotion Startups in India: An Empirical Study." TEST Engineering & Management 83 (April 30, 2020): 27513–20. http://dx.doi.org/10.52783/testmagzine.v83.14585.

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The capital amount provided by professionals firms to invest is called venture capital, this fund is provided to new startup companies, and young ventures that have the potential to grow or are rapidly growing in the market. VC is a form of equity finance particularly designed to fund high risk and reward projects. Many steps and efforts are taken by Indian government to overcome issues related to financing. One of the most popular step taken by Indian government is Startup India. The capital money provided to newly setup companies is called as venture capital because of the reason of higher risk and insecurity in newly startup companies. India’s venture capital industry is flourishing and is expected to fill the gap between capital requirement of technology and startup enterprises that are based on knowledge along with the funds provided by traditional institutions like banks. Venture capital provides funds to firms, the skills which is required to set up company, designing of marketing strategies, management, and organizational skills for new venture. The sample size of the study was 197 respondents. The data analysis was performed with the help of t-test and mean.
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Cadle, S. W., and J. H. van Rooyen. "The importance of knowledge and skills transfer in the private equity, venture capital and angel investing process." Corporate Ownership and Control 8, no. 3 (2011): 518–34. http://dx.doi.org/10.22495/cocv8i3c5p3.

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New business development is one of the most important contributors to economic growth, job creation and economic prosperity of any country. The successful creation of new ventures is a difficult process with many risks involved. The reward of a successful venture is such that many investors are prepared to accept a certain level of risk in the hope of achieving high returns on their capital invested. Many different aspects contributing to the success of a new venture and specifically the importance of the transfer of knowledge and skills in the investment process, was researched. Venture capital investment in the broader sense, including angel investing, venture capital and private equity investment, are important contributors to economic growth and prosperity. Venture capital and Angel investing are seen to be risky ways to invest. However, the risk may be reduced through the active involvement investment process thereby transferring knowledge. The investor is not only a provider of funds but also the provider of knowledge and skills to assist the venture to become successful. The literature review included the results from research recently conducted in the United States of America and Europe. This research highlighted factors, other than merely having a good business idea, that influence the success of a new venture. The global research clearly indicates that the active involvement of the angel investors, venture capitalists and private equity investors in new ventures, through the transfer of knowledge and skills, determines the success of the investment in new business development. The survey that was done in the SA venture capital environment support this outcome although the SA venture capital market sector is in the early stages of development and focuses on private equity investment and not so much new business development. The SA venture capital market discounts their risk through tangible securities taken in the investment process. Investments made are large amounts in well-established ventures with complete management teams where the investor’s involvement is restricted to control and ensuring that the venture complies too the expectation of the providers of the funds. The SA market concentrates much more on control and monitoring as their counterpart in the USA. The main objective of the study, to determine the impact of the transfer of knowledge and skills by the investor to the investee, is supported by the research done in the USA. The effect of the transfer of knowledge and skills is further supported by the effect on the long term return. The transfer of knowledge and skills and active participation increases the expected IRR. The findings are also supported by the literature research done indicating important elements needed to enhance the venture’s chances of success.
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Zhang, Ruijun, and Lina Zheng. "Monitoring and Analysis of Venture Capital and Corporate Fraud Based on Deep Learning." Computational Intelligence and Neuroscience 2022 (May 31, 2022): 1–13. http://dx.doi.org/10.1155/2022/4589593.

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With the continuous expansion of global investment institutions, the development of the investment industry is gradually accelerating, but the risks behind the investment are also constantly increasing. Using the data of A-share companies in China’s capital market from 2010 to 2019, this paper studies the impact of venture capital on corporate fraud. Empirical results show that venture capital holdings reduce the probability and frequency of corporate fraud. These findings remain robust after mitigating endogeneity using PSM, Heckman’s two-step, one-step approach, suggesting a causal relationship between venture capital holdings and fraud reduction. Further research shows that the way venture capital holdings reduce corporate fraud is to suppress corporate fraud by improving the company’s internal and external information environment. Furthermore, venture capital holdings play an important role in the governance of corporate disclosure fraud and operational fraud, but not in the governance of TMT fraud. In addition, the venture capital has better inhibitory effects on the supervision and governance of the fraud frequency of nonstate-owned enterprises compared with state-owned enterprises. The results of this research imply that venture capital shareholding plays an important role in preventing corporate fraud. This study contributes to the researches about the value-added role of venture capital and reveals the governance effect of venture capital on corporate fraud. Besides, it provides the theoretical evidence for capitals to better serve the real economy.
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39

Silby, D. Wayne. "Social Venture Capital." Journal of Investing 6, no. 4 (November 30, 1997): 108–11. http://dx.doi.org/10.3905/joi.1997.408436.

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40

Meyerson, Geoff, and Ameya Agge. "Biotech Venture Capital." Journal of Private Equity 11, no. 3 (May 31, 2008): 85–95. http://dx.doi.org/10.3905/jpe.2008.707205.

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41

Knott, Jack H., and Diane McCarthy. "Policy Venture Capital." Administration & Society 39, no. 3 (May 2007): 319–53. http://dx.doi.org/10.1177/0095399706298052.

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42

Cumming, Douglas J., and Armin Schwienbacher. "Fintech venture capital." Corporate Governance: An International Review 26, no. 5 (September 2018): 374–89. http://dx.doi.org/10.1111/corg.12256.

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43

Wang, Lee-Rong. "Taiwan'S Venture Capital." Journal of Industry Studies 2, no. 1 (August 1995): 83–94. http://dx.doi.org/10.1080/13662719500000006.

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44

Bubna, Amit, Sanjiv R. Das, and Nagpurnanand Prabhala. "Venture Capital Communities." Journal of Financial and Quantitative Analysis 55, no. 2 (January 11, 2019): 621–51. http://dx.doi.org/10.1017/s002210901900005x.

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Although venture capitalists (VCs) can choose from thousands of potential syndicate partners, many co-syndicate with small groups of preferred partners. We term these groups “VC communities.” We apply computational methods from the physical sciences to 3 decades of syndication data to identify these communities. We find that communities comprise VCs that are similar in age, connectedness, and functional style but undifferentiated in spatial location. Machine-learning tools classify communities into 3 groups roughly ordered by their age and reach. Community VC financing is associated with faster maturation and greater innovation, especially for early-stage firms without an innovation history.
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45

Telford, Mark. "Venture capital matures." Materials Today 8, no. 5 (May 2005): 18. http://dx.doi.org/10.1016/s1369-7021(05)00891-6.

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Telford, Mark. "Venture capital fundraising." Materials Today 8, no. 12 (December 2005): 20. http://dx.doi.org/10.1016/s1369-7021(05)71280-3.

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47

Taylor, Lon. "Raising Venture Capital." Journal of Business Strategy 10, no. 4 (April 1989): 61–64. http://dx.doi.org/10.1108/eb039326.

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48

Thurston, Thomas. "Disrupting Venture Capital." Thunderbird International Business Review 55, no. 1 (December 19, 2012): 115–20. http://dx.doi.org/10.1002/tie.21527.

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49

Harding, Rebecca. "Venture capital and regional development: Towards a venture capital 'system'." Venture Capital 2, no. 4 (October 2000): 287–311. http://dx.doi.org/10.1080/13691060050177004.

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50

Rabbonaqulovich, Chulliyev Suhrob. "VENTURE CAPITAL AS AN ECONOMIC CATEGORY." European International Journal of Multidisciplinary Research and Management Studies 02, no. 05 (May 1, 2022): 83–87. http://dx.doi.org/10.55640/eijmrms-02-05-18.

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In this article from the side of the author, the opinions of various scientists concerning the features of venture capital are studied. Venture capital is scientifically and theoretically illuminated as an economic category.
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