• Title, Summary, Keyword: Venture Capital

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An Empirical Analysis of Corporate Performance According to Existence and Types of Venture Capital (벤처캐피탈 투자기업의 성과에 관한 연구: 코스닥 IPO 기업을 중심으로)

  • Lee, Kwang Yong;Shin, Hyun-Han;Kim, So Yeon
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.14 no.2
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    • pp.15-30
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    • 2019
  • This study investigates the effects of venture capital investment and corporate venture capital investment on the performance of IPOs listed on KOSDAQ between 2000 and 2014. We classified venture firms with venture capital-backed companies and non-venture capital-backed companies, having the former of which further divided into corporate venture capital-backed companies and independent venture capital-backed companies. The time window of the analysis was set to between 2 years before and 3 years after IPO. Main results of this study reveal that there is little difference between venture capital-backed companies and non-venture capital-backed companies in terms of profitability before and after going public. However, we found out that after IPO venture capital-backed companies display higher ROA than independent venture capital-backed companies or non-venture capital-backed companies, suggesting that corporate venture capital-backed companies might be more advantageous in growing a venture capital ecosystem in Korea.

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Government-Backed Venture Capital as a Science, Technology and Innovation (STI) Policy Instrument: A Chinese Perspective

  • Li, Jun
    • STI Policy Review
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    • v.7 no.1
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    • pp.66-86
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    • 2016
  • This paper discusses government-backed venture capital as a science, technology and innovation (STI) policy instrument from the Chinese perspective. China aspires to overhaul its growth model by vigorously promoting technological innovation and entrepreneurship. Like many other countries, however, funding gaps constrain new technology ventures in the early stages of venture development. To plug this gap, China attempts to use government-backed venture capital as a policy instrument. Super-size central government-backed VCs were set up and dozens of similar schemes are in operation at local levels. This paper provides a case study of such government-backed venture capital schemes in China. It documents the background conditions explaining the country's need for public venture capital, describes the distinct features of program design in such schemes, and assesses the impact of government-backed venture capital.

A Study on the Activation Scheme for the Korean Venture Capitals (한국 벤처캐피탈의 현황과 활성화 방안;중소기업창업투자회사를 중심으로)

  • Nam, In-Hyun;Kim, Yong-Shik
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.1 no.2
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    • pp.157-192
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    • 2006
  • Since the late 1990s, the Korean Venture Capital Industry has been remarkably grown in the aspect of quality and quantity. Korean government expects that the Venture company and Venture Capital Industry would contribute to the recovery of depressed Korean economy and restructuring of the high cost and low efficiency economic structure. Korean government reinforces supporting policies for the Venture Capital and Venture Business. Venture Capital is defined as the form of high risk and high profit investment capital growing the small & medium enterprises to competitive ones through capital and management support and collecting the capital. According to the Gompers and Lerners the venture capital cycle consists of raising investment capital, screening the investment opportunity and invest the money. And later, sold the retained stock to the other investor or to the company. This stage called EXIT Consequently, the function of the venture capital, which supply the fund and the business consultation to venture business, have been emphasized and how to effectively run this capital have been recognized as the way to develop the venture business. In this regard, the problem in Korean Venture Capital Market is as follows. First, most of the sources of fund depends on the government support and this conflict with the nature of risk capital because the government capital emphasis the stability than profitability. And secondly, the efficiency of the venture capital system in Korea do not reach that of the advanced countries due to many kinds of restriction and the rack of support. Consequently, the Activation Schemes for Korean Venture Capital Firms are as follows. First, the sources of venture capital need to diversify from angels to institutional investors such as banks, pensions, fund of fund. And Lastly, the internal management and operational system of venture capital companies should be strengthened by quality to that of global Venture Capital Firms.

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Аnalysis of Venture Capital Trends in Russia

  • Chernova, Vera
    • International Journal of Advanced Culture Technology
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    • v.4 no.3
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    • pp.1-5
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    • 2016
  • The article discusses creation and development of venture investment mechanism in Russia. We analyze some tendencies of venture capital funds functioning which should be focused on the financing of development and production of high-tech products, for the period from the creation of the first funds of venture capital investment in 1994 to 2015. The study results may be of interest for business angels and venture capital funds, as well as for public authorities regulating the legal mechanisms to facilitate such investors.

The Effect of Venture Capital Investment on Corporate Innovation Performance (벤처캐피탈 투자가 벤처기업 혁신성과에 미치는 영향)

  • Park, Jiyoung;Shin, Hyun-Han
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.15 no.1
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    • pp.1-15
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    • 2020
  • This study analyzes the innovation performance of venture firms according to existence of venture capital investment, and according to type and ownership of venture capital. Venture firms are IPO firms that are registered on KOSDAQ between the year 2000 and 2016. They are categorized as corporate venture capital-backed firms (CVC) and independent venture capital-backed firms (IVC). Using patent data from KIPO (Korean Intellectual Property Office), we employ the number of patents and the citations per patent as the measurement of the innovation output. We find the positive association between the venture capital-backed firms and the number of patents before going public. Corporate venture capital-backed firms are positively associated with the number of patents before and after IPO. However, we do not find strong evidence between the number of citations and the existence of venture capital investment or the type of venture capital. Lastly, we provide an inverse U-shaped relationship between the innovation performance and venture capital's ownership. In other words, the innovation output, both the number of patents and the number of citations, gradually increases as the venture capitalist's ownership increases, but also shows a decrease pattern, suggesting that the venture capitalist's ownership does not only spur the innovation but also gives a negative effect on venture firm's innovation output such as excessive intervention. Overall, we reveal that the most important factor for the innovation performance is not the existence of venture capital investment or the type of venture capital, but the ownership of the venture capitalist.

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A Study on the Effect of Venture Capitals' Investments Capabilities on the Investment Performance of Venture Company (벤처캐피탈 투자역량이 벤처기업의 투자성과에 영향을 미치는 요인에 관한 연구)

  • Chun, Yang-Woo;Ha, Kyu-Soo
    • Journal of the Korea Industrial Information Systems Research
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    • v.21 no.6
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    • pp.125-135
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    • 2016
  • It is well known that the encouraging startups play a major role for innovation in an economy. Thus, venture capital are indispensable for the growth of startups. The literature on investment performance of venture capital reveals that the investment strategies depend largely on the characteristics and capabilities of venture capital. Therefore, investment capability of venture capital is important. There are various investing roles that can be identified by venture capital when determining what kind of startup to invest in, whom to invest with, how to invest, how to post-investment management after investment, and so on. This research was conducted to understand the effect of investment capabilities of venture capital on investment performance. To do so, we surveyed 70 venture businesses in the Seoul and Gyeonggido region for an empirical analysis. The empirical results of this paper are summarized as follows. First, the financial performance of venture firms is influenced by the financial capacity of venture capitalists, and investment evaluation of venture capital. Second, the business performance of venture firms is influenced by the marketing support consulting of venture capital, and investment evaluation of venture capital.

An Analysis and Policy Issues of the Korean Venture Capital Markets (국내 벤처캐피탈시장의 현황과 개선방안)

  • 김희경
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.3 no.3
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    • pp.203-209
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    • 2002
  • The Korean venture industry showed a rapid growth due to various government incentive measures, development in information technology, and explosive growth of the KOSDAQ market. Recently, however, the Korean venture industry has revealed numerous side effects, which seemed to be coming from excessively aggressive government involvement in the industry, and fallen into a deep depression. This phenomenon may imply that the Korean venture industry has been established by the government policy rather than based on the venture capital market, whereas the venture industry in advanced nations has grown up autogenously based on it. This paper analyzes the Korean venture capital market and suggests policy recommendations to revitalize the domestic venture capital market. They include facilitating the supply of funds through limited partnerships and overseas venture capital, extending the direct equity investment, and actively promoting the KOSDAQ market.

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A Study on Selection Capability and Investment Efficiency of Korean Venture Capitals (한국 벤처캐피탈의 선별력에 대한 분석)

  • Sohn, Dong-Won;Hur, Wonchang
    • Korean Management Science Review
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    • v.29 no.3
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    • pp.91-105
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    • 2012
  • This paper examines the investment efficiency of Korean venture capitals during 1987~2006 (20 years), focusing on their selection capability. Despite the Korean government's efforts, venture capital industry has evolved in a slow speed. Since the genesis of venture paradigm in Korea at 1997, venture capital industry as a macro unit has been fully discussed in Korean contexts. But venture capital's activities at micro level regarding each investment's outcome have not been examined. This study attempts to fill the voids of micro knowledge about each investment success rates by venture capitals. We analyzed venture investment records in 4,791 venture startups and their success rates. Their investment criteria were relevant to high potential industries and amount of tangible assets. But their criteria were not relevant to R&D intensity and financial growth of venture firms, which may indicate low level of maturity about Korean venture capital industry. We found that Korean venture capital's investment pattern may be originated from the low return of investment, so that efficiency of IPO markets is a prerequisite for the upgrade of venture capitals' efficiency. Some policy implications are discussed.

Components and Interactions of Venture Ecosystems: A Focus on Korean Case Studies

  • Lim, Chae-Yoon;Kim, Yun-Young
    • STI Policy Review
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    • v.1 no.4
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    • pp.21-28
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    • 2010
  • This study analyzes the establishment of venture companies and the interaction of venture ecosystem components (the core factors of venture ecosystems) with a focus on venture companies, venture capital, and the return market. Government support policies are understood as a catalyst for the venture ecosystem and this study will analyze the implications of government involvement by identifying the role of government policies in the venture ecosystem. According to the results of the empirical analysis with data on confirmed venture businesses by the Small and Medium Business Administration (SMBA), policies that provide direct support to venture companies did not have a significant influence on the establishment of new ventures. However, new investments by venture capital show a statistically significant positive effect and signify that the new investment is an important factor in vitalizing the establishment of new venture businesses and that the economic conditions of the return market have a positive effect. The establishment of venture businesses responds to the changes in real and vertical markets with greater resilience compared to government policies. Given the unique nature of the Korean venture ecosystem that responds to the market with greater resilience than government policies, there must be increased efforts to recover the confidence of the capital markets for venture capital in order to promote improved efficiency.

How to Finance Fashion Venture Business at Start-up and Growing Stages

  • Kim, Moon-Sook
    • The International Journal of Costume Culture
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    • v.3 no.2
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    • pp.88-99
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    • 2000
  • Venture industry is becoming a driving force of Korean economy in the digital age of the 21 st century. The success of venture business depends on innovative technology, capital investment, and optimal environment providing industrial flexibility. Although venture business is starting to settle down in Korea, many barriers and challenges still remain. The current study analyzes the present status of venture business including fashion business and issues concerning the venture fund raising and provides prospective views to promote and improve venture industry in Korea.

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