Edited by Alain Fayolle, Paula Kyrö, Tonis Mets and Urve Venesaar
Chapter 12: Corporate venture capital choices setting and investment behaviors: analysis at corporate, venture and business environment levels
The modern business landscape is characterized by fast technological changes, dynamic and complex competitive environments and a race towards new knowledge (Kuratko and Audretsch, 2009). That suggests to well-established companies the need for entrepreneurial adaptability. Indeed, in the last decades, many path-breaking innovations have tended to be implemented outside large entities by entrepreneurial ventures. To succeed in such a dynamic business environment and stay ahead of the competition, it is necessary for large corporations to innovate and to be part of those disruptive and changing technologies and markets (Weber and Weber, 2007; Souza et al., 2004). They have to be very proactive by opening their innovation process strategically and initiating entrepreneurial activities through, for instance, a corporate venture capital (CVC) program (OECD, 2008). CVC refers to “equity or equity-linked investments in young, privately held companies, where the investor is a financial intermediary of a non-financial corporation” (Maula, 2007). In other words, established corporations make direct minority equity investments in privately-held entrepreneurial ventures (Gompers and Lerner, 1998).
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.