981
Views
2
CrossRef citations to date
0
Altmetric
Research Article

Corporate Venture Capital and Startup Outcomes: The Roles of Investment Timing and Multiple Corporate Investors

ORCID Icon & ORCID Icon

References

  • Alvarez-garrido, E., and G. Dushnitsky. 2016. “Are Entrepreneurial Venture’s Innovation Rates Sensitive to Investor Complementary Assets? Comparing Biotech Ventures Backed by Corporate and Independent VCs.” Strategic Management Journal 37 (5): 819–834. doi:10.1002/smj.2359.
  • Anokhin, S., D. Örtqvist, S. Thorgren, and J. Wincent. 2011. “Corporate Venturing Deal Syndication and Innovation: The Information Exchange Paradox.” Long Range Planning 44 (2): 134–151. doi:10.1016/j.lrp.2010.12.005.
  • Bae, J., and J. M. Lee. 2021. “How Technological Overlap Between Spinouts and Parent Firms Affects Corporate Venture Capital Investments in Spinouts: The Role of Competitive Tension.” Academy of Management Journal 64 (2): 643–678. doi:10.5465/amj.2018.0223.
  • Basu, S., C. Phelps, and S. Kotha. 2011. “Towards Understanding Who Makes Corporate Venture Capital Investments and Why.” Journal of Business Venturing 26 (2): 153–171. doi:10.1016/j.jbusvent.2009.07.001.
  • Baum, J., and B. Silverman. 2004. “Picking Winners or Building Them? Alliance, Intellectual, and Human Capital as Selection Criteria in Venture Financing and Performance of Biotechnology Startups.” Journal of Business Venturing 19 (3): 411–436. doi:10.1016/S0883-9026(03)00038-7.
  • Benson, D., and R. H. Ziedonis. 2009. “Corporate Venture Capital as a Window on New Technologies: Implications for the Performance of Corporate Investors When Acquiring Startups.” Organization Science 20 (2): 329–351. doi:10.1287/orsc.1080.0386.
  • Bertoni, F., M. G. Colombo, and L. Grilli. 2013. “Venture Capital Investor Type and the Growth Mode of New Technology-Based Firms.” Small Business Economics 40 (3): 527–552. doi:10.1007/s11187-011-9385-9.
  • Boustanifar, H., E. J. Zajac, and F. Zilja. 2022. “Taking Chances? The Effect of CEO Risk Propensity on firms’ Risky Internationalization Decisions.” Journal of International Business Studies 53 (2): 302–325. doi:10.1057/s41267-021-00480-9.
  • Brüderl, J., P. Preisendörfer, and R. Ziegler. 1992. “Survival Chances of Newly Founded Business Organizations.” American Sociological Review 57 (2): 227–242. doi:10.2307/2096207.
  • Ceccagnoli, M., M. J. Higgins, and H. D. Kang. 2018. “Corporate Venture Capital as a Real Option in the Markets for Technology.” Strategic Management Journal 39 (13): 3355–3381. doi:10.1002/smj.2950.
  • Chemmanur, T. J., E. Loutskina, and X. Tian. 2014. “Corporate Venture Capital, Value Creation, and Innovation.” The Review of Financial Studies 27 (8): 2434–2473. doi:10.1093/rfs/hhu033.
  • Chesbrough, H. 2002. “Making Sense of Corporate Venture Capital.” Harvard Business Review 80 (3): 90–99.
  • Cirillo, B., S. Brusoni, and G. Valentini. 2014. “The Rejuvenation of Inventors Through Corporate Spinouts.” Organization Science 25 (6): 1764–1784. doi:10.1287/orsc.2013.0868.
  • Cohen, W. M., and D. Levinthal. 1990. “Absorptive Capacity: A New Perspective on Learning and Innovation.” Administrative Science Quarterly 35 (1): 128–152. doi:10.2307/2393553.
  • Colombo, M. G., and K. Shafi. 2016. “Swimming with Sharks in Europe: When are They Dangerous and What Can New Ventures Do to Defend Themselves?” Strategic Management Journal 37 (11): 2307–2322. doi:10.1002/smj.2572.
  • Croce, A., L. Grilli, and S. Murtinu. 2019. “Why Do Entrepreneurs Refuse Venture Capital?” Industry and Innovation 26 (6): 619–642. doi:10.1080/13662716.2018.1495063.
  • Dahl, M., and O. Sorenson. 2012. “Home Sweet Home: Entrepreneurs’ Location Choices and the Performance of Their Ventures.” Management Science 58 (6): 1059–1071. doi:10.1287/mnsc.1110.1476.
  • Dealroom.co. 2018. “Nordic Venture Capital Report.” 1-34. Accessed March 10 2020. https://dealroom.co/blog/the-danish-nordic-tech-ecosystem-report-by-techbbq-and-dealroom
  • Di Lorenzo, F., and V. van de Vrande. 2019. “Tapping into the Knowledge of Incumbents: The Role of Corporate Venture Capital Investments and Inventor Mobility.” Strategic Entrepreneurship Journal 13 (1): 24–46. doi:10.1002/sej.1304.
  • Dimov, D., and E. Gedajlovic. 2010. “A Property Rights Perspective on Venture Capital Investment Decisions.” Journal of Management Studies 47 (7): 1248–1271. doi:10.1111/j.1467-6486.2009.00905.x.
  • Drover, W., L. Busenitz, S. Matusik, D. Townsend, A. Anglin, and G. Dushnitsky. 2017. “A Review and Road Map of Entrepreneurial Equity Financing Research: Venture Capital, Corporate Venture Capital, Angel Investment, Crowdfunding, and Accelerators.” Journal of Management 43 (6): 1820–1853. doi:10.1177/0149206317690584.
  • Dushnitsky, G., and M. J. Lenox. 2005a. “When Do Firms Undertake R&D by Investing in New Ventures?” Strategic Management Journal 26 (10): 947–965. doi:10.1002/smj.488.
  • Dushnitsky, G., and M. J. Lenox. 2005b. “When Do Incumbents Learn from Entrepreneurial Ventures?: Corporate Venture Capital and Investing Firm Innovation Rates.” Research Policy 34 (5): 615–639. doi:10.1016/j.respol.2005.01.017.
  • Dushnitsky, G., and J. M. Shaver. 2009. “Limitations to Interorganizational Knowledge Acquisition: The Paradox of Corporate Venture Capital.” Strategic Management Journal 30 (10): 1045–1064. doi:10.1002/smj.781.
  • Dushnitsky, G., and L. Yu. 2022. “Why Do Incumbents Fund Startups? A Study of the Antecedents of Corporate Venture Capital in China.” Research Policy 51 (3): 104463. doi:10.1016/j.respol.2021.104463.
  • Grimes, M. G. 2018. “The Pivot: How Founders Respond to Feedback Through Idea and Identity Work.” Academy of Management Journal 61 (5): 1692–1717. doi:10.5465/amj.2015.0823.
  • Haltiwanger, J., R. S. Jarmin, and J. Miranda. 2013. “Who Creates Jobs? Small versus Large versus Young.” The Review of Economics and Statistics 95 (2): 347–361. doi:10.1162/REST_a_00288.
  • Hampel, C. E., P. Tracey, and K. Weber. 2020. “The Art of the Pivot: How New Ventures Manage Identification Relationships with Stakeholders as They Change Direction.” Academy of Management Journal 63 (2): 440–471. doi:10.5465/amj.2017.0460.
  • Hausman, J., B. H. Hall, and Z. Griliches. 1984. “Econometric Models for Count Data with an Application to the Patents-R & D Relationship.” Econometrica 52 (4): 909–938. doi:10.2307/1911191.
  • Hvide, H. K., and J. Møen. 2010. “Lean and Hungry or Fat and Content? Entrepreneurs’ Wealth and Start-Up Performance.” Management Science 56 (8): 1242–1258. doi:10.1287/mnsc.1100.1177.
  • Jeon, E., and M. Maula. 2022. “Progress Toward Understanding Tensions in Corporate Venture Capital: A Systematic Review.” Journal of Business Venturing 37 (4): 106226. doi:10.1016/j.jbusvent.2022.106226.
  • Katila, R., J. Rosenberger, and K. M. Eisenhardt. 2008. “Swimming with Sharks: Technology Ventures, Defense Mechanisms and Corporate Relationships.” Administrative Science Quarterly 53 (2): 295–332. doi:10.2189/asqu.53.2.295.
  • Kazanjian, R. K. 1988. “Relation of Dominant Problems to Stages of Growth in Technology-Based New Ventures.” Academy of Management Journal 31 (2): 257–279. doi:10.2307/256548.
  • Kazanjian, R. K., and R. Drazin. 1990. “A Stage-Contingent Model of Design and Growth for Technology Based New Ventures.” Journal of Business Venturing 5 (3): 137–150. doi:10.1016/0883-9026(90)90028-R.
  • Kim, K., A. Gopal, and G. Hoberg. 2016. “Does Product Market Competition Drive CVC Investment? Evidence from the U.S. IT Industry.” Information Systems Research 27 (2): 259–281. doi:10.1287/isre.2016.0620.
  • Kim, J. Y., and H. D. Park. 2017. “Two Faces of Early Corporate Venture Capital Funding: Promoting Innovation and Inhibiting IPOs.” Strategy Science 2 (3): 161–175. doi:10.1287/stsc.2017.0032.
  • Kim, J. Y., H. Steensma, and H. D. Park. 2019. “The Influence of Technological Links, Social Ties, and Incumbent Firm Opportunistic Propensity on the Formation of Corporate Venture Capital Deals.” Journal of Management 45 (4): 1595–1622. doi:10.1177/0149206317720722.
  • Knoben, J., and R. Bakker. 2019. “The Guppy and the Whale: Relational Pluralism and Start-ups’ Expropriation Dilemma in Partnership Formation.” Journal of Business Venturing 34 (1): 103–121. doi:10.1016/j.jbusvent.2018.05.008.
  • Kor, Y. Y. 2006. “Direct and Interaction Effects of Top Management Team and Board Compositions on R&D Investment Strategy.” Strategic Management Journal 27 (11): 1081–1099. doi:10.1002/smj.554.
  • Lane, P. J., and M. Lubatkin. 1998. “Relative Absorptive Capacity and Interorganizational Learning.” Strategic Management Journal 19 (5): 461–477. doi:10.1002/(SICI)1097-0266(199805)19:5<461:AID-SMJ953>3.0.CO;2-L.
  • Lane, P. J., J. E. Salk, and M. A. Lyles. 2001. “Absorptive Capacity, Learning, and Performance in International Joint Ventures.” Strategic Management Journal 22 (12): 1139–1161. doi:10.1002/smj.206.
  • Lei, Z., A. K. Gupta, and B. Hallen. 2017. “The Conditional Importance of Prior Ties: A Group-Level Analysis of Venture Capital Syndication.” Academy of Management Journal 60 (4): 1360–1386. doi:10.5465/amj.2013.1088.
  • Luzzi, A., and A. Sasson. 2016. “Individual Entrepreneurial Exit and Earnings in Subsequent Paid Employment.” Entrepreneurship Theory & Practice 40 (2): 401–420. doi:10.1111/etap.12225.
  • March, J. G. 1991. “Exploration and Exploitation in Organizational Learning.” Organization Science 2 (1): 71–87. doi:10.1287/orsc.2.1.71.
  • Ma, D., M. Rhee, and D. Yang. 2013. “Power Source Mismatch and the Effectiveness of Interorganizational Relations: The Case of Venture Capital Syndication.” Academy of Management Journal 56 (3): 711–734. doi:10.5465/amj.2010.0832.
  • Maula, M., E. Autio, and G. Murray. 2009. “Corporate Venture Capital and the Balance of Risks and Rewards for Portfolio Companies.” Journal of Business Venturing 24 (3): 274–286. doi:10.1016/j.jbusvent.2008.10.012.
  • Murray, A., and G. Fisher. 2022. “When More is Less: Explaining the Curse of Too Much Capital for Early-Stage Ventures.” Organization Science, Online first. doi:10.1287/orsc.2021.1568.
  • Neffke, F., and M. Henning. 2013. “Skill Relatedness and Firm Diversification.” Strategic Management Journal 34 (3): 297–316. doi:10.1002/smj.2014.
  • Neffke, F. M. H., A. Otto, and A. Weyh. 2017. “Inter-Industry Labor Flows.” Journal of Economic Behavior & Organization 142: 275–292. doi:10.1016/j.jebo.2017.07.003.
  • Pahnke, E., R. Katila, and K. M. Eisenhardt. 2015. “Who Takes You to the Dance? How Partners’ Institutional Logics Influence Innovation in Young Firms.” Administrative Science Quarterly 60 (4): 596–633. doi:10.1177/0001839215592913.
  • Paik, Y., and H. Woo. 2017. “The Effects of Corporate Venture Capital, Founder Incumbency, and Their Interaction on Entrepreneurial Firms’ R&D Investment Strategies.” Organization Science 28 (4): 670–689. doi:10.1287/orsc.2017.1133.
  • Park, S., J. A. LiPuma, and S. S. Park. 2019. “Concentrating Too Hard? Foreign and Corporate Venture Capital Involvement in Syndicates.” Journal of Small Business Management 57 (2): 327–342. doi:10.1111/jsbm.12322.
  • Park, H. D., and H. Steensma. 2012. “When Does Corporate Venture Capital Add Value for New Ventures?” Strategic Management Journal 33 (1): 1–22. doi:10.1002/smj.937.
  • Park, H. D., and H. Steensma. 2013. “The Selection and Nurturing Effects of Corporate Investors on New Venture Innovativeness.” Strategic Entrepreneurship Journal 7 (4): 311–330. doi:10.1002/sej.1165.
  • Park, H. D., and D. Tzabbar. 2016. “Venture Capital, CEOs’ Sources of Power, and Innovation Novelty at Different Life Stages of a New Venture.” Organization Science 27 (2): 336–353. doi:10.1287/orsc.2016.1054.
  • Polidoro, F., and W. Yang. 2021. “Corporate Investment Relationships and the Search for Innovations: An Examination of Startups’ Search Shift Toward Incumbents.” Organization Science 32 (4): 909–939. doi:10.1287/orsc.2020.1421.
  • Rivkin, J. W. 2000. “Imitation of Complex Strategies.” Management Science 46 (6): 824–844. doi:10.1287/mnsc.46.6.824.11940.
  • Rossi, M., J. Chouaibi, D. Graziano, and G. Festa. 2022. “Corporate Venture Capitalists as Entrepreneurial Knowledge Accelerators in Global Innovation Ecosystems.” Journal of Business Research 142: 512–523. doi:10.1016/j.jbusres.2022.01.003.
  • Rossi, M., G. Festa, L. Solima, and S. Popa. 2017. “Financing Knowledge-Intensive Enterprises: Evidence from CVCs in the US.” The Journal of Technology Transfer 42 (2): 338–353. doi:10.1007/s10961-016-9495-2.
  • Sahlman, W. A. 1990. “The Structure and Governance of Venture-Capital Organizations.” Journal of Financial Economics 27 (2): 473–521. doi:10.1016/0304-405X(90)90065-8.
  • Sakhartov, A. V., and T. B. Folta. 2014. “Resource Relatedness, Redeployability, and Firm Value.” Strategic Management Journal 35 (12): 1781–1797. doi:10.1002/smj.2182.
  • Santamaria, S. 2022. “Portfolio Entrepreneurs’ Behavior and Performance: A Resource Redeployment Perspective.” Management Science 68 (1): 333–354. doi:10.1287/mnsc.2020.3929.
  • Shankar, R. K., and D. A. Shepherd. 2019. “Accelerating Strategic Fit or Venture Emergence: Different Paths Adopted by Corporate Accelerators.” Journal of Business Venturing 34 (5): 105886. doi:10.1016/j.jbusvent.2018.06.004.
  • Sørensen, J. B. 2004. “Recruitment-Based Competition Between Industries: A Community Ecology.” Industrial and Corporate Change 13 (1): 149–170. doi:10.1093/icc/13.1.149.
  • Sterk, V., P. Sedláček, and B. Pugsley. 2021. “The Nature of Firm Growth.” The American Economic Review 111 (2): 547–579. doi:10.1257/aer.20190748.
  • Tavassoli, S., V. Jienwatcharamongkhol, and P. Arenius. 2022. “Colocation of Entrepreneurs and New Firm Survival: Role of New Firm Founder’s Experiential Relatedness to Local Entrepreneurs.” Entrepreneurship Theory & Practice, Online first 104225872110570. doi:10.1177/10422587211057029.
  • Teece, D. J. 1986. “Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy.” Research Policy 15 (6): 285–305. doi:10.1016/0048-7333(86)90027-2.
  • Terza, J., A. Basu, and P. Rathouz. 2008. “Two-Stage Residual Inclusion Estimation: Addressing Endogeneity in Health Econometric Modeling.” Journal of Health Economics 27 (3): 531–543. doi:10.1016/j.jhealeco.2007.09.009.
  • Tzabbar, D., and J. Margolis. 2017. “Beyond the Startup Stage: The Founding Team’s Human Capital, New Venture’s Stage of Life, Founder–CEO Duality, and Breakthrough Innovation.” Organization Science 28 (5): 857–872. doi:10.1287/orsc.2017.1152.
  • Uzuegbunam, I., B. Ofem, and S. Nambisan. 2019. “Do Corporate Investors Affect Entrepreneurs’ IP Portfolio? Entrepreneurial Finance and Intellectual Property in New Firms.” Entrepreneurship Theory & Practice 43 (4): 673–696. doi:10.1177/1042258717738247.
  • Van de Vrande, V., and W. Vanhaverbeke. 2013. “How Prior Corporate Venture Capital Investments Shape Technological Alliances: A Real Options Approach.” Entrepreneurship Theory & Practice 37 (5): 1019–1043. doi:10.1111/j.1540-6520.2012.00526.x.
  • von Krogh, G., B. Battistini, F. Pachidou, and P. Baschera. 2012. “The Changing Face of Corporate Venturing in Biotechnology.” Nature Biotechnology 30 (10): 911–915. doi:10.1038/nbt.2383.
  • Wang, X. A., and W. P. Wan. 2013. “Explaining the Variance in Underpricing Among Venture Capital- Backed IPOs: A Comparison Between Private and Corporate VC Firms.” Strategic Entrepreneurship Journal 7 (4): 331–342. doi:10.1002/sej.1163.
  • Wooldridge, J. 2010. Econometric Analysis of Cross Section and Panel Data. 2nd ed. Cambridge: MIT Press.
  • World Bank. 2019. Employment in service sector, agriculture and industry (ILOSTAT database).
  • Yang, Y., V. K. Narayanan, and S. Zahra. 2009. “Developing the Selection and Valuation Capabilities Through Learning: The Case of Corporate Venture Capital.” Journal of Business Venturing 24 (3): 261–273. doi:10.1016/j.jbusvent.2008.05.001.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.