Investment strategies of Venture Capital funds : tracking US and UK investment activities
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/35566 |
Resumo: | The advantages of Corporate Venture Capital (CVC) and Independent Venture Capital (IVC) on successful and profitable exit strategies have increasingly gained interest in VC literature during recent times and literature has found a CVC superiority relative to IVC. This study aims to do an international comparative analysis of the effects of CVC funding on fundraising, duration of investment, and exit strategies across the US and the UK. Through a set of 6562 US and UK formerly VC-backed ventures with first investment date between 1999 and 2014, strong evidence of a positive impact of CVC relative to fully IVC one is found. Results show that CVC-backed ventures receive larger funding amounts and the positive impact of CVC financing on funding is stronger for the UK, when compared to US. US CVC-backed firms host shorter durations before exit, whereas UK CVC-backed start-ups lean towards longer durations than IVC-backed ones. Additionally, CVC-funding decreases duration in US ventures. In addition, funding amount is positively correlated with the likelihood of an IPO exit, yet the impact of duration is ambiguous, in line with the conflicting existing literature. The positive effect of CVC-financing on the probability of an IPO exit is stronger in the UK, when compared to the US. Lastly, results suggest that the English and American VC markets are yet to be perfectly integrated and that theoretical models are more likely to hold in the US, rather than in the UK. |
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Investment strategies of Venture Capital funds : tracking US and UK investment activitiesCorporate Venture CapitalIndependent Venture CapitalFundingDurationExit strategiesCapital de Risco CorporativoCapital de Risco IndependenteFinanciamentoDuraçãoEstratégias de desinvestimentoDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe advantages of Corporate Venture Capital (CVC) and Independent Venture Capital (IVC) on successful and profitable exit strategies have increasingly gained interest in VC literature during recent times and literature has found a CVC superiority relative to IVC. This study aims to do an international comparative analysis of the effects of CVC funding on fundraising, duration of investment, and exit strategies across the US and the UK. Through a set of 6562 US and UK formerly VC-backed ventures with first investment date between 1999 and 2014, strong evidence of a positive impact of CVC relative to fully IVC one is found. Results show that CVC-backed ventures receive larger funding amounts and the positive impact of CVC financing on funding is stronger for the UK, when compared to US. US CVC-backed firms host shorter durations before exit, whereas UK CVC-backed start-ups lean towards longer durations than IVC-backed ones. Additionally, CVC-funding decreases duration in US ventures. In addition, funding amount is positively correlated with the likelihood of an IPO exit, yet the impact of duration is ambiguous, in line with the conflicting existing literature. The positive effect of CVC-financing on the probability of an IPO exit is stronger in the UK, when compared to the US. Lastly, results suggest that the English and American VC markets are yet to be perfectly integrated and that theoretical models are more likely to hold in the US, rather than in the UK.As vantagens de financiamento de fundos de Capital de Risco Corporativo (CRC) e de Capital de Risco Independente (CRI) em estratégias de desinvestimento lucrativas e bem-sucedidas têm ganho interesse na literatura inerente a Capital de Risco, existindo superioridade do CRC em relação ao CRI. Este estudo objetiva uma análise comparativa internacional dos efeitos do financiamento de CRC na captação de recursos, duração do investimento e estratégias de desinvestimento nos Estados Unidos (EUA) e Reino Unido (RU). Através de uma amostra de 6562 start-ups financiadas com capital de risco, com primeiro investimento entre 1999 e 2014, são encontradas fortes evidências de um impacto positivo do CRC em relação ao CRI. Resultados mostram que empresas financiadas por CRC recebem maior financiamento e o impacto positivo do CRC no financiamento é mais forte no RU, quando comparado aos EUA. Empresas americanas financiadas por CRC revelam durações de investimento mais curtas, enquanto start-ups inglesas financiadas por CRC ostentam investimentos mais longos que aquelas financiadas por CRI. O financiamento do CRC diminui a duração do investimento nos EUA. Resultados mostram que o financiamento está positivamente correlacionado com a probabilidade de saída através de OPI, embora o impacto da duração seja ambíguo, em linha com a conflitante literatura existente. O efeito positivo do financiamento CRC na probabilidade de saída por OPI é mais forte no RU. Por fim, os resultados sugerem que os mercados de capital de risco inglês e americano não estão perfeitamente integrados e modelos teóricos se sustentam melhor nos EUA.Shuwaikh, Fátima HussienVeritati - Repositório Institucional da Universidade Católica PortuguesaCastro, Rita Grego de2021-10-15T09:53:34Z2021-04-272021-042021-04-27T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/35566TID:202728811enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:41:05Zoai:repositorio.ucp.pt:10400.14/35566Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:28:53.046077Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Investment strategies of Venture Capital funds : tracking US and UK investment activities |
title |
Investment strategies of Venture Capital funds : tracking US and UK investment activities |
spellingShingle |
Investment strategies of Venture Capital funds : tracking US and UK investment activities Castro, Rita Grego de Corporate Venture Capital Independent Venture Capital Funding Duration Exit strategies Capital de Risco Corporativo Capital de Risco Independente Financiamento Duração Estratégias de desinvestimento Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Investment strategies of Venture Capital funds : tracking US and UK investment activities |
title_full |
Investment strategies of Venture Capital funds : tracking US and UK investment activities |
title_fullStr |
Investment strategies of Venture Capital funds : tracking US and UK investment activities |
title_full_unstemmed |
Investment strategies of Venture Capital funds : tracking US and UK investment activities |
title_sort |
Investment strategies of Venture Capital funds : tracking US and UK investment activities |
author |
Castro, Rita Grego de |
author_facet |
Castro, Rita Grego de |
author_role |
author |
dc.contributor.none.fl_str_mv |
Shuwaikh, Fátima Hussien Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Castro, Rita Grego de |
dc.subject.por.fl_str_mv |
Corporate Venture Capital Independent Venture Capital Funding Duration Exit strategies Capital de Risco Corporativo Capital de Risco Independente Financiamento Duração Estratégias de desinvestimento Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Corporate Venture Capital Independent Venture Capital Funding Duration Exit strategies Capital de Risco Corporativo Capital de Risco Independente Financiamento Duração Estratégias de desinvestimento Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
The advantages of Corporate Venture Capital (CVC) and Independent Venture Capital (IVC) on successful and profitable exit strategies have increasingly gained interest in VC literature during recent times and literature has found a CVC superiority relative to IVC. This study aims to do an international comparative analysis of the effects of CVC funding on fundraising, duration of investment, and exit strategies across the US and the UK. Through a set of 6562 US and UK formerly VC-backed ventures with first investment date between 1999 and 2014, strong evidence of a positive impact of CVC relative to fully IVC one is found. Results show that CVC-backed ventures receive larger funding amounts and the positive impact of CVC financing on funding is stronger for the UK, when compared to US. US CVC-backed firms host shorter durations before exit, whereas UK CVC-backed start-ups lean towards longer durations than IVC-backed ones. Additionally, CVC-funding decreases duration in US ventures. In addition, funding amount is positively correlated with the likelihood of an IPO exit, yet the impact of duration is ambiguous, in line with the conflicting existing literature. The positive effect of CVC-financing on the probability of an IPO exit is stronger in the UK, when compared to the US. Lastly, results suggest that the English and American VC markets are yet to be perfectly integrated and that theoretical models are more likely to hold in the US, rather than in the UK. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-10-15T09:53:34Z 2021-04-27 2021-04 2021-04-27T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/35566 TID:202728811 |
url |
http://hdl.handle.net/10400.14/35566 |
identifier_str_mv |
TID:202728811 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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