This chapter examines the role of corporate venture capital (CVC) in enabling companies to gain access to innovations created by startups. These innovations can be a substitute or complement to a firm’s own innovations and ongoing market activities. Dushnitsky and Shaver reason that incumbents who use CVC typically rely on the disclosures made by the entrepreneurial startups themselves and, therefore, can fairly reliably assess the potential effect of their technologies. Using data from over 2500 startups, the authors identify 167 CVC investments. Their analyses reveal that CVC investments are likely to occur where there is complementarity in the products of corporate investors and startups. Their results also reinforce the importance of strategic objectives that companies have when they make their CVC investments. Interestingly, their results reflect a fundamental difference between CVC activities and other modes of venturing; in CVC investments, companies typically transact with startups with which they have no relationship, and thus focus more on what these new ventures have to offer in terms of complementarity.
Gary Dushnitsky and Diego Zunino
The authors provide a broad overview of our knowledge on crowdfunding, particularly bridging two important issues in contemporary crowdfunding research: the ‘problem of riches’, that is, crowdfunding has been popular across scholarly disciplines and knowledge is embedded in disciplinary silos; and the ‘dearth of evidence’ in crowdfunding research, that is, although there exist thousands of platforms, most studies analyse funding patterns using data from a single platform.