The venture capital market and technological innovation

Given the growing economic impact of venture capital and the increasing amount of scholarly work in this field, an assessment of the relevance and value of venture capital research to practicing venture capitalists is appropriate. To better understand its usefulness, we employed a Delphi methodology to solicit professional venture capitalists’ insight on existing research, on expected changes in the venture capital environment, and on the most relevant research topics going forward. We found VCs seek more research in exit strategies and performance, and less in fundraising. VCs also indicated that ongoing structural changes in the industry can inform future research directions.

What do venture capitalists think of venture capital research

Venture capital is an alternative source of funding for SMEs in this country. Recognizing the importance of this industry toward economic growth, Malaysian government has initiated various strategic plans. Despite the promising growth of venture capital market here, past empirical findings reveal that the performance of venture capital backed companies (investee companies) over long run has been relatively poor, especially after venture capitalist exit. Thus, there is a need to understand the decision-making process practiced by Malaysian venture capitalists. Most decision making process evolve from classical decision-making model, hence current study purports to find the disparity between the current practice and classical venture capital decision-making model. The current study incorporates an exploratory research through survey of 16 venture capitalists. Findings reveal there are significant similarities in the decision making procedure and investment criteria used to select investment deal with the classical model. Similarities noted in the last two stages of decision-making. As for investment criteria, greater importance is given to management integrity and exit opportunity rather than to the business idea. Findings also reveal that VCs experience does not correspond to expertise in decision-making.

Venture Capital Pre-Investment Decision Making Process: An Exploratory Study in Malaysia

As American governors acquire enhanced regulatory and decision-making powers for economic development, the prevalence of statewide business scorecards and other factors are prompting voters to make these politicians and their agents responsible for the financial well-being of their states. Consequently, governors are expanding their policymaking authority and have gone to greater lengths to entice global executives to commit their increasingly mobile capital to their locales in efforts to increase jobs. More than any other sector, manufacturing is the area in which American incoming foreign direct investment is concentrated or what this study will refer to as international industry investment. Data has been collected from three global-manufacturing related Bureau of Economic Analysis datasets, namely FDI in the US-Employment of Nonbank U.S. Affiliates, by State, FDI in the US-Manufacturing Employment of Majority-Owned Nonbank U.S. Affiliates, and Gross Property, Plant, and Equipment of Nonbank U.S. Affiliates, by State. Based on a cross-sectional analysis of this information and gubernatorial tenure, it has been determined that global executives are most likely to devote their industry-based capital to a state in the year after the reelection of a governor and in the second term of an administration.

Robert Kirk Mueller

Papers

Venture capital movement

Metadevelopment: Beyond the bottom line in corporate growth

ECO and the CEO: Strategic retreat or strategic advance