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Venture Capital Firms (venture + capital_firm)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

Genetically Engineered: Why Some Venture Capital Firms Are More Successful Than Others

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 1 2009
Jennifer M. Walske
While venture capital has received a tremendous amount of attention, prior research has predominantly looked at venture capital firms (VCFs) post raising their first fund. In this paper, we move the point of analysis back further and ask what type of founding team experience best predicts VCF success, controlling for firm strategy, firm size, and the environment upon which the firm was born. Empirical results show that venture capital, senior management, and consulting experience aids VCF success, while entrepreneurial experience impedes it. None of the control variables affect a VCF's ability to raise subsequent funds. [source]

Management Support for Portfolio Companies of Venture Capital Firms: An Empirical Study of German Venture Capital Investments

BRITISH JOURNAL OF MANAGEMENT, Issue 3 2001
Michael Schefczyk
To date, there is a dearth of research on strategic antecedents and consequences of management support activities which German venture capital firms (VCFs) provide for the portfolio companies (PCs) they have invested in. This article provides insights regarding such support practices, their main determinants and impacts on the economic performance of PCs. Hypotheses were derived regarding usage of various types of management support, typical functional foci of management support and the influence of VCF and PC characteristics on management support practice. Hypotheses also cover relationships between type, intensity, and frequency of management support and PC performance. Data for 103 PCs of 12 German VCFs indicate the VCFs can improve the performance of their PCs by providing consultative management support, including active involvement in key functional decisions. [source]

Genetically Engineered: Why Some Venture Capital Firms Are More Successful Than Others

Venture Capitalists' Decision to Syndicate

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 2 2006
Sophie Manigart
Financial theory, access to deal flow, selection, and monitoring skills are used to explain syndication in venture capital firms in six European countries. In contrast with U.S. findings, portfolio management motives are more important for syndication than individual deal management motives. Risk sharing, portfolio diversification, and access to larger deals are more important than selection and monitoring of deals. This holds for later stage and for early stage investors. Value adding is a stronger motive for syndication for early stage investors than for later stage investors, however. Nonlead investors join syndicates for the selection and value-adding skills of the syndicate partners. [source]

The Contributions of Stewart Myers to the Theory and Practice of Corporate Finance,

JOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2008
Franklin Allen
In a 40-plus year career notable for path-breaking work on capital structure and innovations in capital budgeting and valuation, MIT finance professor Stewart Myers has had a remarkable influence on both the theory and practice of corporate finance. In this article, two of his former students, a colleague, and a co-author offer a brief survey of Professor Myers's accomplishments, along with an assessment of their relevance for the current financial environment. These contributions are seen as falling into three main categories: ,Work on "debt overhang" and the financial "pecking order" that not only provided plausible explanations for much corporate financing behavior, but can also be used to shed light on recent developments, including the reluctance of highly leveraged U.S. financial institutions to raise equity and the recent "mandatory" infusions of capital by the U.S. Treasury. ,Contributions to capital budgeting that complement and reinforce his research on capital structure. By providing a simple and intuitive way to capture the tax benefits of debt when capital structure changes over time, his adjusted present value (or APV) approach has not only become the standard in LBO and venture capital firms, but accomplishes in practice what theorists like M&M had urged finance practitioners to do some 30 years earlier: separate the real operating profitability of a company or project from the "second-order" effects of financing. And his real options valuation method, by recognizing the "option-like" character of many corporate assets, has provided not only a new way of valuing "growth" assets, but a method and, indeed, a language for bringing together the disciplines of corporate strategy and finance. ,Starting with work on estimating fair rates of return for public utilities, he has gone on to develop a cost-of-capital and capital allocation framework for insurance companies, as well as a persuasive explanation for why the rate-setting process for railroads in the U.S. and U.K. has created problems for those industries. [source]