Timo B. Poser shows that Corporate Venture Capital offers a broad set of advantages, but has a limited impact on sustainable competitive advantage of the investing firm.

Explanations to the inner workings of one of the least understood, but arguably most important, areas of business finance is offered to readers in this engaging volume: venture capital. Venture capitalists provide necessary investment to seed (or startup) companies, but the startup is only the beginning, there is much more to be explored. These savvy investors help guide young entrepreneurs, who likely have little experience, to turn their businesses into the Googles, Facebooks, and Groupons of the world. This book explains the often-complex methods venture capitalists use to value companies and to get the most return on their investments, or ROI. This book is a must-have for any reader interested in the business world.

Inhaltsangabe:Zusammenfassung: Immer mehr junge Unternehmungen erobern Märkte, die vormals von etablierten Konzernen dominiert waren. Innovationen können verhindern, dass Konzerne langfristig von solchen Unternehmungen verdrängt werden. Corporate Venture Capital (CVC) stellt eine geeignete Form dar das Innovationsmanagement zu unterstützen. Obwohl es eng mit dem Venture Capital Finanzierungskonzept verwandt ist, stellt CVC eine für Unternehmen variierte Form Innovation zu schüren dar. Die Diplomarbeit beschäftigt sich in einem empirischen Teil mit dem Einsatz dieses Instrumentes in einem Entwicklungsland, wo naturgemäß Innovationsaktivitäten weniger ausgeprägt sind. Deswegen stoßen Konzerne beim erfolgreichen Einsatz von CVC auf Hindernisse und Grenzen. Eine Analyse des Brasilianischen CVC Marktes und eine integrierte Fallstudie eines großen nationalen CVC Gebers offenbaren Unterschiede zu Industrieländern. Die gegenwärtige Forschung, welche meist auf Industrieländer beschränkt bleibt, stuft strategische CVC Aktivitäten als sehr sinnvoll sein. Die Analyse ergibt jedoch, dass finanzielle Zielsetzungen in Brasilien überwiegen. Unterschiedliche Markt und Regulierungsbedingungen, Kulturunterschiede, Schwachstellen im der Makroökonomischen Umwelt, im Anreizsystem sowie andere Herausforderungen, erfordern Anpassungen beim Einsatz von CVC, um mit erhöhten Risiken besser umzugehen, unabhängig in welcher Phase des CVC Prozesses. Nichtsdestotrotz erscheint CVC ein geeignetes Innovationsinstrument in Brasilien zu sein und besitzt noch Entwicklungspotential. Abstract: Corporations require innovation to maintain business, since small enterprises with new products can rapidly overtake slow established ones. Corporate venture capital seems attractive to generate radical innovation. While CVC is closely related to the financing concept of venture capital, corporations increasingly use corporate venture capital to foster innovation efforts. In developing countries, where innovation activities are scarce, corporations face many obstacles and barriers to deploy successfully corporate venture capital. An empirical study of Brazil's corporate venture capital market reveals business practices different from conventional concepts in industrialized countries. According to conventional knowledge, strategic corporate venture capital investments make most sense, but in practice financial objectives dominate in Brazil. Different market and regulatory conditions, [...]

Inhaltsangabe:Abstract: This paper evaluates how corporate venture capital investment can contribute to sustaining the competitiveness of large high technology concerns. In the first section the author sets the framework by explaining terminology in the context of technolgy and innovation as well as the market for technology companies. In addition, general issues regarding technology companies and their market environment are discussed. To obtain a means of evaluation, then issue of competitiveness of high technology concerns in the current market situation is examined in general. Competitiveness is discussed and explained by reviewing a substantial amout of literature along a framework developed by Feurer and Chaharbaghi. The chapter culminates in developing an approach to sustaining competitiveness for high technology concerns. As the aspects that determine competitiveness cover a broad spectrum, this section is the main part of the paper. Once an approach to sustaining competitiveness has been developed the third and last part examines in which way the efforts of high technology concerns to sustain competitiveness are advanced by corporate venture capital investment. Essentially, the conclusions drawn do not negate the effect of corporate venture capital, but set a limited and consise scope for corporate venture capital investment. Inhaltsverzeichnis:Table of Contents: List of abbreviations5 List of figures6 List of tables7 A.Introduction and methodology8 B.Basics regarding technology and high technology concerns10 I.Definitions and characteristics of technology and the technology market10 1.Science and research10 2.Technology10 3.Technique13 4.Types of research14 5.Innovation14 6.The concept of core technology15 7.Technology S-curve and life-cycle16 8.Technology intensity19 9.Customers22 10.Technology companies24 11.The field of research management of technology 25 12.The scope of this paper26 II.Target firms and the high technology market26 1.Market trends27 2.Strengths and weaknesses of target firms when compared with other types of technology companies28 a.Weaknesses28 b.Strengths29 3.Window on technology29 4.New technologies and new markets32 C.Competitiveness33 I.Customer values34 1.Real option values for customers36 2.Competitive values38 II.Shareholder values40 1.Real option values for shareholders42 2.Relation of customer and shareholder values42 III.The ability to act and react and the dynamism [...]

This dissertation examines the formation and outcomes of interorganizational partnerships between industry incumbents and new ventures. New ventures are often a powerful competitive force threatening established firms, but incumbent firms can also benefit from collaborating with them and acquiring external knowledge. Although there has been significant research on the topic, relatively little is known about relational factors that influence who partners with whom and how. Also, strategic benefits of partnering with new ventures for incumbent firm's learning have not been scrutinized; in particular, whether making such formal arrangements is the best way for incumbents to attain knowledge from new ventures, and whether there are any alternative learning mechanisms available have not been examined. I address these issues in the context of corporate venture capital (CVC) investments, typically the first relationships formed between new ventures and incumbent firms. First, I examined how new ventures' social ties with potential corporate investors based on founders' employment or prior co-investments of the lead venture capital firm influence the formation of CVC investment deals. Second, I examined the relative effects of multiple mechanisms including CVC investments on incumbent firm learning from new ventures. I find that 1) the formation of investment relationships between new ventures and incumbents is a joint function of social ties between them, an incumbent firm's integrity regarding the intellectual property of others, and technological links between them; 2) CVC investments have little independent effect on incumbent firm learning from new ventures when alternative knowledge transfer mechanisms such as hiring inventors from new ventures, prior knowledge spillover links and outbound inventor mobility are simultaneously accounted for.

Venture capital (also known as VC or Venture) is a type of private equity capital typically provided for early-stage, high-potential, growth companies in the interest of generating a return through an eventual realisation event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. It is typical for venture capital investors to identify and back companies in high technology industries such as biotechnology and ICT (information and communication technology). This book details the role of venture capital in innovation.