www.innovationpolicyplatform.org (OECD)
Impediments to access to finance are huge obstacles for budding innovators and innovative entrepreneurs. However, market failures in markets for finance are often substantial, as innovative ventures can be risky and barriers to information can create challenges for innovation financing. IP can potentially help provide access to resources by providing a title over inventions, which signals the value of such inventions to financial markets, without exposing innovators to the risk of revealing the nature of their inventions to others. In practice, financial market development is necessary for IP to effectively be able to provide this type of service. Several large and successful companies have taken advantage of this and used their IP portfolios accordingly. Bank securitization backed by IP assets is one way to access finance. In this context, the need for monetary valuation of IP becomes particularly important when it is used as a financial tool by IP holders, and as an investment asset by financial institutions and venture capitalists.
Investing the Rights Way: A Guide for Investors on Business and Human Rights Dr Lendy Spires
This document provides an overview of why human rights should matter to investors. It notes that companies associated with human rights abuses face operational, legal, and reputational risks. Respecting human rights can also benefit companies financially. The fiduciary duties of company managers require them to identify and manage material risks like human rights issues. There is a growing body of research indicating that environmental, social, and governance factors including human rights should be considered in investment decision making. The UN Guiding Principles on Business and Human Rights provide a framework for investors to assess human rights risks across their portfolios and engage with companies on human rights.
Transforming Legal Profession To Legal Services (Legal Industry Analysis)Timothy LaBadie
This document analyzes trends transforming the legal profession into a legal services industry. It finds that the legal industry is fundamentally changing due to changes in client demand, technology, and globalization.
In terms of demand, corporate clients are insisting on cheaper legal services while demanding higher value. They are increasingly using alternative fee agreements and moving work in-house. Clients also refuse to pay high rates for junior associates.
Globalization, in the form of legal process outsourcers, is taking routine legal work from law firms. Technology allows individual clients to be served by online providers and allows lawyers new ways to market themselves online. Cloud-based practices are also transforming law practice.
The old law firm model of
Private banking in India has expanded since the 2008 financial crisis as India's wealth has grown. However, the industry remains limited by regulatory and technological factors. After 2008, Indian investors became more aware of global investment products and began demanding more sophisticated services from their private banks. In response, Indian banks have begun offering products more in line with global private banking, focusing on alternative investments and distributing third-party products. However, further development is needed to meet global private banking standards.
Private banking in India has expanded since the 2008 financial crisis as India's wealth has grown. However, the industry continues to be limited by regulations and technology. After 2008, Indian investors became more aware of global investment products and began demanding more sophisticated services from their private banks. In response, Indian banks have begun offering products more in line with global private banking, focusing on alternative investments and distributing third-party products. However, the industry still needs improvements in infrastructure, human capital, and regulatory support to meet global standards.
Crisis' Heritage Management - New Business Opportunities Out of the Financial...Hristian Daskalov
This presentation intends to present the opportunities emerging for the national economy, out of the financial crisis. In particular the management of those, which arise from the commercial real estate owned property sector, defined by the author as a „crisis’ heritage management”. On one hand, as real estate property prices are subject of wide fluctuations, the longer possession of such assets can seriously impact the financial condition of the already shattered financial institutions, but on the on other, with the help of professional and proactive management and the right kind of attitude by all the stakeholders, the „heritage”, left out of the financial collapse, can not only help stabilize the system - bringing liquidity into it, but can also support its healthy corporate governance in the long-term. The properties themselves (business buildings, warehouses, retail- and office spaces), being an object of optimization of maintenance costs, reengineering, intensive marketing, as a result of the crisis, can serve as a solid base for number of new and profitable business and investment opportunities, described in the present article, as a proof of the healing effect of the financial crisis and the „second chance” it gives.
BrundidgeStanger-IAM-magazine-2013QualityRankingMisung Lee
This document discusses patent quality and how law firms are rated based on the quality of patents they secure for clients. It provides context on changes in intellectual property and increasing focus on patent quality from corporations. The Ocean Tomo ratings system is described which analyzes characteristics of patents that were renewed versus abandoned to determine quality. Law firms that consistently secure high quality patents based on this system tend to rank at the top year after year. Close communication and understanding between law firms and their clients is emphasized as important to achieving quality patents.
Financial Technology is seen as a major disruptive force in banking but there are also examples where they are working together. Either way the banking business model will need to change profoundly.
The European Commission appointed a panel of experts to review IP valuation methods and identify bottlenecks. The panel found that while valuation standards and guidelines exist, there is limited understanding and confidence in the results. The bottleneck is not a lack of methods, but limited awareness and trust in the methods. The panel recommends establishing a shared data source for valuers, overseeing body for valuation practice, and introducing IP reporting standards to increase transparency and access to financing for IP-reliant firms.
Investing the Rights Way: A Guide for Investors on Business and Human Rights Dr Lendy Spires
This document provides an overview of why human rights should matter to investors. It notes that companies associated with human rights abuses face operational, legal, and reputational risks. Respecting human rights can also benefit companies financially. The fiduciary duties of company managers require them to identify and manage material risks like human rights issues. There is a growing body of research indicating that environmental, social, and governance factors including human rights should be considered in investment decision making. The UN Guiding Principles on Business and Human Rights provide a framework for investors to assess human rights risks across their portfolios and engage with companies on human rights.
Transforming Legal Profession To Legal Services (Legal Industry Analysis)Timothy LaBadie
This document analyzes trends transforming the legal profession into a legal services industry. It finds that the legal industry is fundamentally changing due to changes in client demand, technology, and globalization.
In terms of demand, corporate clients are insisting on cheaper legal services while demanding higher value. They are increasingly using alternative fee agreements and moving work in-house. Clients also refuse to pay high rates for junior associates.
Globalization, in the form of legal process outsourcers, is taking routine legal work from law firms. Technology allows individual clients to be served by online providers and allows lawyers new ways to market themselves online. Cloud-based practices are also transforming law practice.
The old law firm model of
Private banking in India has expanded since the 2008 financial crisis as India's wealth has grown. However, the industry remains limited by regulatory and technological factors. After 2008, Indian investors became more aware of global investment products and began demanding more sophisticated services from their private banks. In response, Indian banks have begun offering products more in line with global private banking, focusing on alternative investments and distributing third-party products. However, further development is needed to meet global private banking standards.
Private banking in India has expanded since the 2008 financial crisis as India's wealth has grown. However, the industry continues to be limited by regulations and technology. After 2008, Indian investors became more aware of global investment products and began demanding more sophisticated services from their private banks. In response, Indian banks have begun offering products more in line with global private banking, focusing on alternative investments and distributing third-party products. However, the industry still needs improvements in infrastructure, human capital, and regulatory support to meet global standards.
Crisis' Heritage Management - New Business Opportunities Out of the Financial...Hristian Daskalov
This presentation intends to present the opportunities emerging for the national economy, out of the financial crisis. In particular the management of those, which arise from the commercial real estate owned property sector, defined by the author as a „crisis’ heritage management”. On one hand, as real estate property prices are subject of wide fluctuations, the longer possession of such assets can seriously impact the financial condition of the already shattered financial institutions, but on the on other, with the help of professional and proactive management and the right kind of attitude by all the stakeholders, the „heritage”, left out of the financial collapse, can not only help stabilize the system - bringing liquidity into it, but can also support its healthy corporate governance in the long-term. The properties themselves (business buildings, warehouses, retail- and office spaces), being an object of optimization of maintenance costs, reengineering, intensive marketing, as a result of the crisis, can serve as a solid base for number of new and profitable business and investment opportunities, described in the present article, as a proof of the healing effect of the financial crisis and the „second chance” it gives.
BrundidgeStanger-IAM-magazine-2013QualityRankingMisung Lee
This document discusses patent quality and how law firms are rated based on the quality of patents they secure for clients. It provides context on changes in intellectual property and increasing focus on patent quality from corporations. The Ocean Tomo ratings system is described which analyzes characteristics of patents that were renewed versus abandoned to determine quality. Law firms that consistently secure high quality patents based on this system tend to rank at the top year after year. Close communication and understanding between law firms and their clients is emphasized as important to achieving quality patents.
Financial Technology is seen as a major disruptive force in banking but there are also examples where they are working together. Either way the banking business model will need to change profoundly.
The European Commission appointed a panel of experts to review IP valuation methods and identify bottlenecks. The panel found that while valuation standards and guidelines exist, there is limited understanding and confidence in the results. The bottleneck is not a lack of methods, but limited awareness and trust in the methods. The panel recommends establishing a shared data source for valuers, overseeing body for valuation practice, and introducing IP reporting standards to increase transparency and access to financing for IP-reliant firms.
Accessing Capital, An Insight - RSM India publication (2011)RSM India
This publication by RSM India group, published in April 2011, is general in nature and endeavors to to analyse certain significant aspects of tapping capital.
Joint Ventures in China: Features and main issues of one of the most common and risky foreign investment vehicles in China. If the initial reasons for foreign investors to venture with a Chinese partner were basically the compulsoriness of the law, “tempting” low labor and production costs, tax incentives and friendly tax policies, and the “mirage” of a boundless market, it is important to understand, nowadays, that these reasons are disappearing and foreign enterprises have more safe alternatives, if a joint venture is still a useful and profitable vehicle to operate in China.
Broker Opportunity: Legal and Identity Theft Solutions as Voluntary BenefitsAntonio Muniz Olan
This white paper explores nine reasons for
benefits brokers to embrace this evolving
business model, and the competitive gains they
stand to make in offering their clients voluntary
products such as IDT protection and legal plans.
2009 India Offshoring: A New Model for Legal Servicesguest24bf50
1) The document discusses offshoring legal services to India as a way for law departments to reduce costs and increase capacity. It outlines different business models like outsourcing, insourcing, and hybrid models.
2) Key activities that are good candidates for offshoring include document reviews, research, drafting agreements, and intellectual property work. Activities should be scalable and costly.
3) Implementing policies, processes, templates, hiring criteria, training, and addressing quality concerns can help ensure work meets expectations when offshoring. Timing differences and increased turnaround times are also important considerations.
(1) The workshop presentation provides an overview of intellectual property (IP) valuation for the music industry. (2) Major benefits of the workshop include gaining an understanding of IP assets, value, and valuation methods. (3) IP valuation determines the monetary worth of IP assets and is important for managing them.
Private Banking in India After the 2008 Financial CrisisCognizant
Private banking (PB) services in India are expanding very rapidly in conjunction with a growth economy and many high et worth individuals seeking better returns on their investments through such PB offerings as REITs, third-party products, CDOs, mortgage-backed securuties, etc. We ofer a guide to investment options and options for IT infrastructure to enable banks to provide wide-ranging PB services.
The CIP’s measures for SMEs- the support for a sustainable growthimpulse.brussels
The European Competitiveness and Innovation Programme (CIP) provides three kind of tailor-made measures adapted to SMEs' needs, whatever their activity sectors are.
1.This programme contains several funding schemes supporting market-oriented, sustainable and eco-innovative products, process and services.
2.The CIP also proposes financial tools to reduce the risk for the start-up or to expand the innovative businesses
3. It promotes the internationalisation of SMEs, with the Enterprise Europe Network services portfolios.
The document summarizes key discussions from the 14th Annual ELFA/IMN Investor Conference. There was high confidence in the equipment finance sector. Competition in the industry was increasing due to more players entering the space, but this also fueled innovation. However, some panelists warned that rising competition could lead to weaker underwriting standards over time. Overall, the investor demand for equipment ABS was strong and continuing to grow the market.
The Ecosystem of Early Stage Investment in China - presentation to BPI France...Bruno Bensaid
An overview of early-stage investment ecosystem in China (incubators, accelerators, new tech zones, Early stage VCs and angel investors), as well as some examples of successful French startups in China as of Q3 2015
This survey collected data from 194 commercial real estate owners and managers regarding investments in secondary and tertiary markets. Key findings include:
- 44% of respondents expect to make additional investments in non-core markets in 2011, seeing them as offering the best development opportunities.
- Nearly half of respondents plan to upgrade existing properties in these markets, while 40% plan to increase rents in 2011.
- Average cap rates seen in non-core markets range from 8-12.5%, offering higher yields than core markets.
- The strength of the local economy and availability of financing were the most important factors for considering investments in secondary/tertierary markets.
Yannis Pierrakis: Trends & Challenges of the Venture Capital Market in Europe...FITT
This presentation was held by Yannis Pierrakis during the FITT conference „ICT Innovations: Research > Business > Society“ on 10 May 2011 in Brussels.
www.fitt-for-innovation.eu
This document summarizes a research study that examines the relationship between R&D engagement, seeking finance, and perceived financial constraints in high-tech small and medium enterprises (SMEs). The study tests two hypotheses: 1) R&D engagement is positively related to seeking finance in high-tech SMEs, and 2) perceived financial constraints are negatively related to R&D engagement among high-tech SMEs that sought finance. Logistic and linear regression models are used to analyze data from 365 and 159 high-tech SMEs, respectively. The results support both hypotheses and indicate that R&D engagement predicts seeking additional finance, while higher perceived financial constraints are linked to lower R&D expenditures.
An Empirical Analysis of Relationship between Private Equity Investments and ...Dr. Amarjeet Singh
During the last decade the growth in the private
equity industry in India has been phenomenal, especially in
the recent five years. Private equity industry has become the
prime interest area for many researchers and academicians in
India. Private equity industry in India is burgeoning area of
research, which inherits many explorations and untapped
potential areas of research. One such untapped area of
research is the empirical research is relationship between
Private equity investments and exits in India. The research
question which has leaded the study is that Private equity
industry being in its transition stage, does the performance
and opportunities created by the early starters has proven the
potential and invites more investors and investments? In this
line, this study is an attempt to assess the interrelationship and
causal effect in the relationship using VECM (Vector Error
Correction Model) and Granger causality model. The results
of the study confer that existence of long run causal relation
between Private Equity Investments and Private Equity Exits.
Thereby, the study emphasis the impact of private equity exits
on private equity investments in India. Private Equity Exit
opportunities for the investments made plays crucial role in
attracting Private Equity investments in India.
Role of venture capital in the development of Rajasthan: Entrepreneurs perspe...inventionjournals
: Since independence there is significant improvement in the economic and social development of
Rajasthan for which role of venture capitalist is important. in this paper the researcher indented to highlight
the different industrial sector of Rajasthan which got benefited by different venture capitalist . and Also efforts
are made to determine the entrepreneurs perception regarding the role of venture capital for smooth
functioning of newly established companies. The research design used is exploratory in nature. The data is
being collected from the entrepreneurs of Rajasthan, RVCF and other websites, hence this research is based on
primary and secondary data. Correlation is used to determine the relationship between the role of venture
capital and development of Rajasthan . The results of this study would help venture capitalist to modify their
role and policies according to the changing needs of state’s entrepreneurs which will facilitate it’s adoption by
rural.
Key
A Bibliometric Review Of Research On Venture CapitalDarian Pruitt
This document presents a bibliometric review of research on venture capital. It analyzes 1,840 publications on venture capital indexed in the Web of Science Core Collection database from 2000 to 2018. The review examines publication trends over time, the most productive countries and institutions, influential authors, citations received, and the main topics addressed. It finds that the US and UK are the most impactful countries, Harvard University the most productive institution, and the Journal of Business Venturing the most active journal. The review aims to provide an overview of venture capital research and support future research and decision-making.
DealMarket Digest Issue137 - 17 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 137 - April 17th, 2014:
- Cravings for Direct Co-Investment Still Strong
- Narrow Niches and Big Returns
- Australian PE Backed IPOs Outperform
- The Traits of Family Wealth Managers That Make Money…. and Lose it
- CEOs Get M&A Fever Again
- Quote of the Week: Betting on Justice
This document summarizes a research paper that examines the relationship between product market strategies (innovator vs imitator), financing strategies (venture capital vs other), and product market outcomes. The authors find that innovator firms are more likely to obtain venture capital financing than imitator firms. They also find that venture capital is associated with a significantly faster time to market, especially for innovator firms. This suggests venture capital plays an important role in supporting innovative companies.
Suggested Citation: O Riordan, N. 2013. An initial exploration of Crowd Funding. NUIG Whitaker Institute Working Paper Series.
An overview of existing research on crowd funding platforms and the identification of key research questions that need to be addressed in future research
This document provides an overview of venture capital and its application in Islamic finance. It discusses the venture capital lifecycle including fundraising, investing, and exiting investments. It describes how venture capital funds are typically structured as limited partnerships. When structuring deals, venture capitalists prefer to use preferred stock, convertible preferred stock, or participating convertible preferred stock over common stock alone. Other mechanisms used include vesting of shares and including covenants to protect investors. The document aims to describe how this model could be adapted to comply with Sharia principles.
Factors Influencing the Growth of Venture CapitalIntroduct.docxmecklenburgstrelitzh
Factors Influencing the Growth of Venture Capital
Introduction
Many people dream of starting their businesses. There are several reasons why entrepreneurs would be willing to start their businesses. However, many of them get stuck because of a lack of capital since many financial institutions don't lend in the absence of collateral security. Some get lucky enough to get financial support from their savings or families and friends. But for others, there is only one alternative to obtain funds and start their businesses, and that is through venture capital. This is a part of private equity capital that is normally given for new start-ups that promise potential growth in the aim of getting a return on investment. In other words, venture capital investment is generally refers to cash in exchange for a share in the invested business.
Structure of Venture Capital
Venture capitalists (VC) refer to an investment firm or a person making venture investments. Apart from the issuance of capital, venture capitalists (VCs) also play a role in managing the business at an early stage, thus adding expertise skills. Kwak (2019) tells us that because there is a high risk of losing all investment in a given start-up company, most venture capital investments are done a pool format, where investors combine their portfolios into one large fund that invests in different start-ups. By doing this, they spread out risks hence improve their return on investments
According to Wallmeroth, Wirtz & Groh (2018), venture capital is generally used as a tool for economic development in underdeveloped countries. For the past few decades, venture capital has attained substantial growth especially in the developing economies where a considerable increase in economic activities has been observed of late. The main reason for this could be the search for different profitable markets that have gone through economic maturity, given that the developed markets have shown a slight decrease in profitability levels due to trade wars currently at play. Despite venture capital being widely disseminated worldwide, but the activity is mostly concentrated in America. In this paper, I will aim to understand the factors that drive the growth of venture capital.
Motives that drive Venture Capital
The venture capital market contains three elements namely management organization, capitalists, and invested corporations. In simplifying the dynamic market, capitalists invest their investments which are controlled by management organizations, which in turn, buy a stake in investment firms for a specified period (Maula, Autio & Murray, 2010).
· Organization Innovativeness
To clearly illustrate motives for venture capital, it’s essential to analyze the level of growth and development as a result of the effectiveness of measures at the organizational level. Generally, the organizations’ interest in creating venture funds has been largely influenced by the venture capital climate. Most companies gene.
Factors Influencing the Growth of Venture CapitalIntroduct.docxlmelaine
Factors Influencing the Growth of Venture Capital
Introduction
Many people dream of starting their businesses. There are several reasons why entrepreneurs would be willing to start their businesses. However, many of them get stuck because of a lack of capital since many financial institutions don't lend in the absence of collateral security. Some get lucky enough to get financial support from their savings or families and friends. But for others, there is only one alternative to obtain funds and start their businesses, and that is through venture capital. This is a part of private equity capital that is normally given for new start-ups that promise potential growth in the aim of getting a return on investment. In other words, venture capital investment is generally refers to cash in exchange for a share in the invested business.
Structure of Venture Capital
Venture capitalists (VC) refer to an investment firm or a person making venture investments. Apart from the issuance of capital, venture capitalists (VCs) also play a role in managing the business at an early stage, thus adding expertise skills. Kwak (2019) tells us that because there is a high risk of losing all investment in a given start-up company, most venture capital investments are done a pool format, where investors combine their portfolios into one large fund that invests in different start-ups. By doing this, they spread out risks hence improve their return on investments
According to Wallmeroth, Wirtz & Groh (2018), venture capital is generally used as a tool for economic development in underdeveloped countries. For the past few decades, venture capital has attained substantial growth especially in the developing economies where a considerable increase in economic activities has been observed of late. The main reason for this could be the search for different profitable markets that have gone through economic maturity, given that the developed markets have shown a slight decrease in profitability levels due to trade wars currently at play. Despite venture capital being widely disseminated worldwide, but the activity is mostly concentrated in America. In this paper, I will aim to understand the factors that drive the growth of venture capital.
Motives that drive Venture Capital
The venture capital market contains three elements namely management organization, capitalists, and invested corporations. In simplifying the dynamic market, capitalists invest their investments which are controlled by management organizations, which in turn, buy a stake in investment firms for a specified period (Maula, Autio & Murray, 2010).
· Organization Innovativeness
To clearly illustrate motives for venture capital, it’s essential to analyze the level of growth and development as a result of the effectiveness of measures at the organizational level. Generally, the organizations’ interest in creating venture funds has been largely influenced by the venture capital climate. Most companies gene ...
Accessing Capital, An Insight - RSM India publication (2011)RSM India
This publication by RSM India group, published in April 2011, is general in nature and endeavors to to analyse certain significant aspects of tapping capital.
Joint Ventures in China: Features and main issues of one of the most common and risky foreign investment vehicles in China. If the initial reasons for foreign investors to venture with a Chinese partner were basically the compulsoriness of the law, “tempting” low labor and production costs, tax incentives and friendly tax policies, and the “mirage” of a boundless market, it is important to understand, nowadays, that these reasons are disappearing and foreign enterprises have more safe alternatives, if a joint venture is still a useful and profitable vehicle to operate in China.
Broker Opportunity: Legal and Identity Theft Solutions as Voluntary BenefitsAntonio Muniz Olan
This white paper explores nine reasons for
benefits brokers to embrace this evolving
business model, and the competitive gains they
stand to make in offering their clients voluntary
products such as IDT protection and legal plans.
2009 India Offshoring: A New Model for Legal Servicesguest24bf50
1) The document discusses offshoring legal services to India as a way for law departments to reduce costs and increase capacity. It outlines different business models like outsourcing, insourcing, and hybrid models.
2) Key activities that are good candidates for offshoring include document reviews, research, drafting agreements, and intellectual property work. Activities should be scalable and costly.
3) Implementing policies, processes, templates, hiring criteria, training, and addressing quality concerns can help ensure work meets expectations when offshoring. Timing differences and increased turnaround times are also important considerations.
(1) The workshop presentation provides an overview of intellectual property (IP) valuation for the music industry. (2) Major benefits of the workshop include gaining an understanding of IP assets, value, and valuation methods. (3) IP valuation determines the monetary worth of IP assets and is important for managing them.
Private Banking in India After the 2008 Financial CrisisCognizant
Private banking (PB) services in India are expanding very rapidly in conjunction with a growth economy and many high et worth individuals seeking better returns on their investments through such PB offerings as REITs, third-party products, CDOs, mortgage-backed securuties, etc. We ofer a guide to investment options and options for IT infrastructure to enable banks to provide wide-ranging PB services.
The CIP’s measures for SMEs- the support for a sustainable growthimpulse.brussels
The European Competitiveness and Innovation Programme (CIP) provides three kind of tailor-made measures adapted to SMEs' needs, whatever their activity sectors are.
1.This programme contains several funding schemes supporting market-oriented, sustainable and eco-innovative products, process and services.
2.The CIP also proposes financial tools to reduce the risk for the start-up or to expand the innovative businesses
3. It promotes the internationalisation of SMEs, with the Enterprise Europe Network services portfolios.
The document summarizes key discussions from the 14th Annual ELFA/IMN Investor Conference. There was high confidence in the equipment finance sector. Competition in the industry was increasing due to more players entering the space, but this also fueled innovation. However, some panelists warned that rising competition could lead to weaker underwriting standards over time. Overall, the investor demand for equipment ABS was strong and continuing to grow the market.
The Ecosystem of Early Stage Investment in China - presentation to BPI France...Bruno Bensaid
An overview of early-stage investment ecosystem in China (incubators, accelerators, new tech zones, Early stage VCs and angel investors), as well as some examples of successful French startups in China as of Q3 2015
This survey collected data from 194 commercial real estate owners and managers regarding investments in secondary and tertiary markets. Key findings include:
- 44% of respondents expect to make additional investments in non-core markets in 2011, seeing them as offering the best development opportunities.
- Nearly half of respondents plan to upgrade existing properties in these markets, while 40% plan to increase rents in 2011.
- Average cap rates seen in non-core markets range from 8-12.5%, offering higher yields than core markets.
- The strength of the local economy and availability of financing were the most important factors for considering investments in secondary/tertierary markets.
Yannis Pierrakis: Trends & Challenges of the Venture Capital Market in Europe...FITT
This presentation was held by Yannis Pierrakis during the FITT conference „ICT Innovations: Research > Business > Society“ on 10 May 2011 in Brussels.
www.fitt-for-innovation.eu
This document summarizes a research study that examines the relationship between R&D engagement, seeking finance, and perceived financial constraints in high-tech small and medium enterprises (SMEs). The study tests two hypotheses: 1) R&D engagement is positively related to seeking finance in high-tech SMEs, and 2) perceived financial constraints are negatively related to R&D engagement among high-tech SMEs that sought finance. Logistic and linear regression models are used to analyze data from 365 and 159 high-tech SMEs, respectively. The results support both hypotheses and indicate that R&D engagement predicts seeking additional finance, while higher perceived financial constraints are linked to lower R&D expenditures.
An Empirical Analysis of Relationship between Private Equity Investments and ...Dr. Amarjeet Singh
During the last decade the growth in the private
equity industry in India has been phenomenal, especially in
the recent five years. Private equity industry has become the
prime interest area for many researchers and academicians in
India. Private equity industry in India is burgeoning area of
research, which inherits many explorations and untapped
potential areas of research. One such untapped area of
research is the empirical research is relationship between
Private equity investments and exits in India. The research
question which has leaded the study is that Private equity
industry being in its transition stage, does the performance
and opportunities created by the early starters has proven the
potential and invites more investors and investments? In this
line, this study is an attempt to assess the interrelationship and
causal effect in the relationship using VECM (Vector Error
Correction Model) and Granger causality model. The results
of the study confer that existence of long run causal relation
between Private Equity Investments and Private Equity Exits.
Thereby, the study emphasis the impact of private equity exits
on private equity investments in India. Private Equity Exit
opportunities for the investments made plays crucial role in
attracting Private Equity investments in India.
Role of venture capital in the development of Rajasthan: Entrepreneurs perspe...inventionjournals
: Since independence there is significant improvement in the economic and social development of
Rajasthan for which role of venture capitalist is important. in this paper the researcher indented to highlight
the different industrial sector of Rajasthan which got benefited by different venture capitalist . and Also efforts
are made to determine the entrepreneurs perception regarding the role of venture capital for smooth
functioning of newly established companies. The research design used is exploratory in nature. The data is
being collected from the entrepreneurs of Rajasthan, RVCF and other websites, hence this research is based on
primary and secondary data. Correlation is used to determine the relationship between the role of venture
capital and development of Rajasthan . The results of this study would help venture capitalist to modify their
role and policies according to the changing needs of state’s entrepreneurs which will facilitate it’s adoption by
rural.
Key
A Bibliometric Review Of Research On Venture CapitalDarian Pruitt
This document presents a bibliometric review of research on venture capital. It analyzes 1,840 publications on venture capital indexed in the Web of Science Core Collection database from 2000 to 2018. The review examines publication trends over time, the most productive countries and institutions, influential authors, citations received, and the main topics addressed. It finds that the US and UK are the most impactful countries, Harvard University the most productive institution, and the Journal of Business Venturing the most active journal. The review aims to provide an overview of venture capital research and support future research and decision-making.
DealMarket Digest Issue137 - 17 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 137 - April 17th, 2014:
- Cravings for Direct Co-Investment Still Strong
- Narrow Niches and Big Returns
- Australian PE Backed IPOs Outperform
- The Traits of Family Wealth Managers That Make Money…. and Lose it
- CEOs Get M&A Fever Again
- Quote of the Week: Betting on Justice
This document summarizes a research paper that examines the relationship between product market strategies (innovator vs imitator), financing strategies (venture capital vs other), and product market outcomes. The authors find that innovator firms are more likely to obtain venture capital financing than imitator firms. They also find that venture capital is associated with a significantly faster time to market, especially for innovator firms. This suggests venture capital plays an important role in supporting innovative companies.
Suggested Citation: O Riordan, N. 2013. An initial exploration of Crowd Funding. NUIG Whitaker Institute Working Paper Series.
An overview of existing research on crowd funding platforms and the identification of key research questions that need to be addressed in future research
This document provides an overview of venture capital and its application in Islamic finance. It discusses the venture capital lifecycle including fundraising, investing, and exiting investments. It describes how venture capital funds are typically structured as limited partnerships. When structuring deals, venture capitalists prefer to use preferred stock, convertible preferred stock, or participating convertible preferred stock over common stock alone. Other mechanisms used include vesting of shares and including covenants to protect investors. The document aims to describe how this model could be adapted to comply with Sharia principles.
Factors Influencing the Growth of Venture CapitalIntroduct.docxmecklenburgstrelitzh
Factors Influencing the Growth of Venture Capital
Introduction
Many people dream of starting their businesses. There are several reasons why entrepreneurs would be willing to start their businesses. However, many of them get stuck because of a lack of capital since many financial institutions don't lend in the absence of collateral security. Some get lucky enough to get financial support from their savings or families and friends. But for others, there is only one alternative to obtain funds and start their businesses, and that is through venture capital. This is a part of private equity capital that is normally given for new start-ups that promise potential growth in the aim of getting a return on investment. In other words, venture capital investment is generally refers to cash in exchange for a share in the invested business.
Structure of Venture Capital
Venture capitalists (VC) refer to an investment firm or a person making venture investments. Apart from the issuance of capital, venture capitalists (VCs) also play a role in managing the business at an early stage, thus adding expertise skills. Kwak (2019) tells us that because there is a high risk of losing all investment in a given start-up company, most venture capital investments are done a pool format, where investors combine their portfolios into one large fund that invests in different start-ups. By doing this, they spread out risks hence improve their return on investments
According to Wallmeroth, Wirtz & Groh (2018), venture capital is generally used as a tool for economic development in underdeveloped countries. For the past few decades, venture capital has attained substantial growth especially in the developing economies where a considerable increase in economic activities has been observed of late. The main reason for this could be the search for different profitable markets that have gone through economic maturity, given that the developed markets have shown a slight decrease in profitability levels due to trade wars currently at play. Despite venture capital being widely disseminated worldwide, but the activity is mostly concentrated in America. In this paper, I will aim to understand the factors that drive the growth of venture capital.
Motives that drive Venture Capital
The venture capital market contains three elements namely management organization, capitalists, and invested corporations. In simplifying the dynamic market, capitalists invest their investments which are controlled by management organizations, which in turn, buy a stake in investment firms for a specified period (Maula, Autio & Murray, 2010).
· Organization Innovativeness
To clearly illustrate motives for venture capital, it’s essential to analyze the level of growth and development as a result of the effectiveness of measures at the organizational level. Generally, the organizations’ interest in creating venture funds has been largely influenced by the venture capital climate. Most companies gene.
Factors Influencing the Growth of Venture CapitalIntroduct.docxlmelaine
Factors Influencing the Growth of Venture Capital
Introduction
Many people dream of starting their businesses. There are several reasons why entrepreneurs would be willing to start their businesses. However, many of them get stuck because of a lack of capital since many financial institutions don't lend in the absence of collateral security. Some get lucky enough to get financial support from their savings or families and friends. But for others, there is only one alternative to obtain funds and start their businesses, and that is through venture capital. This is a part of private equity capital that is normally given for new start-ups that promise potential growth in the aim of getting a return on investment. In other words, venture capital investment is generally refers to cash in exchange for a share in the invested business.
Structure of Venture Capital
Venture capitalists (VC) refer to an investment firm or a person making venture investments. Apart from the issuance of capital, venture capitalists (VCs) also play a role in managing the business at an early stage, thus adding expertise skills. Kwak (2019) tells us that because there is a high risk of losing all investment in a given start-up company, most venture capital investments are done a pool format, where investors combine their portfolios into one large fund that invests in different start-ups. By doing this, they spread out risks hence improve their return on investments
According to Wallmeroth, Wirtz & Groh (2018), venture capital is generally used as a tool for economic development in underdeveloped countries. For the past few decades, venture capital has attained substantial growth especially in the developing economies where a considerable increase in economic activities has been observed of late. The main reason for this could be the search for different profitable markets that have gone through economic maturity, given that the developed markets have shown a slight decrease in profitability levels due to trade wars currently at play. Despite venture capital being widely disseminated worldwide, but the activity is mostly concentrated in America. In this paper, I will aim to understand the factors that drive the growth of venture capital.
Motives that drive Venture Capital
The venture capital market contains three elements namely management organization, capitalists, and invested corporations. In simplifying the dynamic market, capitalists invest their investments which are controlled by management organizations, which in turn, buy a stake in investment firms for a specified period (Maula, Autio & Murray, 2010).
· Organization Innovativeness
To clearly illustrate motives for venture capital, it’s essential to analyze the level of growth and development as a result of the effectiveness of measures at the organizational level. Generally, the organizations’ interest in creating venture funds has been largely influenced by the venture capital climate. Most companies gene ...
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Innovation’s Role in Mobilizing Private Financing Javier Mozó
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Intellectual Property and Markets for Finance - Innovation Policy Platform (OECD)
1. IP and markets for finance
Summary: Impediments
to access to finance are huge obstacles for
budding innovators and innovative entrepreneurs. However, market failures in
markets for finance are often substantial, as innovative ventures can be risky
and barriers to information can create challenges for innovation financing. IP
can potentially help provide access to resources by providing a title over
inventions, which signals the value of such inventions to financial markets,
without exposing innovators to the risk of revealing the nature of their
inventions to others. In practice, financial market development is necessary
for IP to effectively be able to provide this type of service. Several large and
successful companies have taken advantage of this and used their IP
portfolios accordingly. Bank securitization backed by IP assets is one way to
access finance. In this context, the need for monetary valuation of IP becomes
particularly important when it is used as a financial tool by IP holders, and as
an investment asset by financial institutions and venture capitalists.
Keywords: IPRs, venture capitalist, start-up, patents, R&D funding
Main Contributing Author(s): Ashish Bharadwaj
Main Contributing Institution: OECD
Page Contents:
What is meant by access to finance for innovation?
How does IP relate to access to finance?
What is the evidence to support the role of IP in access to finance?
2. What is meant by access to finance for innovation?
Financial instruments and fiscal mechanisms help transform an idea into an
invention, and an invention into an innovation. These can be divided into
internal sources of finance, i.e. resources used for investments in innovation
within the firm, and also diverse external sources of finance (Figure
1)(see Financing innovation).
Figure 1: Major financing instruments for promoting innovation
Source: OECD (2012). See reference for sources.
Impediments in access to finance are huge obstacles for budding innovators
and innovative entrepreneurs. This is particularly the case for small and young
businesses
and,
therefore,
affects
innovative
entrepreneurs
disproportionately. From an investor’s perspective, the risk associated with a
product or idea that requires funding is of paramount importance. A riskier
venture is likely to result in either a lack of willingness to lend or relatively
higher lending costs to compensate for the above average risk.
3. How does IP relate to access to finance?
IP rights can deal with two potentially important sources of market failures in
markets of finance and in this way can help improve access to finance for
innovation:
First
is the challenge of trading a non-rival knowledge that, once
revealed, can be appropriated by other parties without returns to the
inventor. This might lead to deals not being consummated because
inventors do not reveal sufficient information to financiers.
The second type of market failure is an information asymmetry
challenge, in that financial markets cannot adequately assess the
value of the invention, which might be partly signaled by an IP title. In
this way, IP can support the commercial application of inventions.
Moreover, IP can support access to finance by providing needed collateral.
Start-ups based on technological breakthroughs have, in most cases, no other
asset than their IP. Their financing needs and access to it is based on how
these intangible assets can be leveraged. IP can serve as collateral for credit.
Bank securitization backed by IP assets is another way to access finance. It is
essentially the “process of taking an intangible asset (such as a patent being
licensed to a third party) and utilizing the future cash flows from the license
payments or royalties to secure current financing for the licensor” (EC, 2006).
The 1997 asset-backed securities called “Bowie Bonds”, which were the first
ever music royalties securitization based on future receivables, gave rise to IP
securitization as a valuable financial vehicle.
Commercialization of research innovation (in some cases referred to as
“technology transfer activities”) entails building strategic partnerships. This
acts as a catalyst in the development of IP markets (Pelly and Cramer-Eis,
2011). For example, the objective of the European Investment Fund’s IP
financing programme is “to provide European universities, research
laboratories, innovative SMEs and corporations a viable mechanism for
monetizing their inventions. The design of this IP fund is based on the
assumption that by gathering a large number of patents it will be possible to
establish IP clusters, which are increasingly necessary for large companies,
4. as well as SMEs developing innovative products and services” (Pelly and
Cramer-Eis, 2011). This IP fund invests in patents via licensing and
acquisition, to allow SMEs access to critical intellectual property assets.
A critical step is to get valuation of the IP done in order to decide finance
avenues the IP holder can take. Angel investors and venture capitalists are
very interested in knowing the value of the IP, on the basis of which (along
with other indicators) they make an informed decision to invest. The need for
monetary valuations becomes particularly relevant when they are used as
financial tools by IP holders, and as investment assets by financial institutions
and venture capitalists (EC, 2006).
What is the evidence to support the role of IP in
access to finance?
There is evidence to suggest that IP titles are indeed important for access to
finance. A propriety product or one that can be protected by legal means is
considered to be an important selection criterion for venture capitalists.
Studies have shown that patent applications have a high and positive
correlation with pre-IPO financing, i.e. VC financing and private investments
(MacMillan at al., 1985; Baum and Silverman, 2004). Haeussler et al. (2008)
find that in the presence of patent applications, VC financing occurs relatively
earlier. Lerner (1994) has shown a positive relationship between patents and
the valuation of the company. Hsu and Ziedonis (2008) confirmed this, finding
that patents increase the value of start-up companies, as estimated by
venture capitalists in the semiconductor industry. Bottazzi (2009) claims that
along with financial performance, VCs may also consider such indicators as
product performance, approvals by the Federal Drug Administration (FDA)
and patent approvals (emphasis added).
Moreover, Hoenen et al. (2012) empirically demonstrate that biotechnology
firms with pending patent applications substantially increase the level of
funding they receive during their first round of financing. Further, they find that
once the initial investment has materialized, patents (both applications and
grants) have no effect on the growth of venture capital funds raised during the
second round of financing. Sichelman and Graham (2010) provide evidence
suggesting that investors weight patents more heavily in biotechnology when
they decide to invest in a particular firm (compared to other high tech firms).
5. According to Wild (2011), R&D tax credits are important for encouraging
investment in innovation and should be very relevant to creative industries.
Several large and successful companies have taken advantage of this, and
have used their IP portfolios accordingly. Small and medium firms, however,
still face challenges in signaling their technological potential in financial
markets, including the use of IP as collateral. There are also differences
regarding how IP titles will serve in markets. For example, a report on how
businesses in creative industries raise finance found that finance providers
readily lend to music businesses with back catalogues, as these assets are
viewed as good security. In contrast, intellectual property held by software
firms was viewed as lower quality security because it quickly becomes
obsolete (Fraser, 2011). A study by the UK Department of Culture, Media &
Sports (DCMS) also stated that the intangible nature of the music industry,
trading on its intangible knowledge and contributing over GBP 3 billion in
sales (DCMS, 2001, p.2), actually made it difficult for financing institutions
(such as banks) to make lending decisions.
In Europe, financing institutions have been more skeptical about such
financing methods based on IP. This is partly because of a lack of consensus
on the best methods to assess the value of intangibles. Intellectual property,
in this context, was often seen as an unreliable form of collateral in Europe.
The EC Report of the Independent Expert Group on R&D and Innovation
stated that easy financing requires an effective VC industry and highlighted
the importance of innovative financial instruments tailored for knowledgebased industries relying on IP.
References:
Audretsch,
D.B., Bönte, W. and Mahagaonkar, P. (2012), “Financial signaling by
innovative nascent ventures: The relevance of patents and prototypes”,
Research Policy, 41, pp. 1407-1421.
Baum, J. and Silverman, B. (2004), “Picking winners or building them? Alliance,
intellectual, and human capital as selection criteria in venture financing and
performance of biotechnology startups”, Journal of Business Venturing, 19, pp.
411-436.
Bottazzi, L. (2009), “The role of venture capital in alleviating financial constraints
of innovative firms”, EIB Papers, 14(2), European investment Bank.
Darcy, J., H. Kramer-Eis, D. Guellec and O. Debande (2009), “Financing
technology transfer”, EIB Papers, 14(2), European investment Bank.
6. DBJ Financial Platform. http://www.dbj.jp/en/co/csr/property/platform1.html
DCMS (2001), “Creative industries economic estimates”, UK Department
of
Culture, Media & Sports, available at www.culture.gov.uk.
EC/Gallop (2006), “2006 Innobarometer on cluster’s role in facilitating innovation
in Europe”, Analytical Report prepared by the Gallop Organization, DG
Enterprise and Industry.
EC (2006), Creating an Innovative Europe, Report of the Independent Expert
Group on R&D and Innovation appointed following the Hampton Court Summit,
Brussels.
EC (2006), “Intellectual property and access to finance for high growth SMEs”,
Discussion paper for the workshop, Financing SMEs, entrepreneurs and
innovators, Brussels, Nov 14, 2006. DG for Enterprise and Industry.
Engel, D., and M. Keilbach (2007), “Firm-level implications of early stage venture
capital investment: an empirical investigation”, Journal of Empirical Finance,
14, pp. 150–167.
Fraser (2011), “Access to finance for creative industry businesses”, Report
prepared for BIS and DCMS, Section on econometric analysis from the UK
survey
of
SME
finances.
Available
at https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil
...
Haeussler, C., Harhoff, D. and Schirge, M. (2008), “Stock market reactions to
patent oppositions in biotechnology and pharmaceutical”, Working Paper,
Ludwig-Maximilians Universität Munich, mimeo.
Hall, B. (2009), “The financing of innovative firms”, Chapter in Handbook of
Research on Innovation and Entrepreneurship, Ed. D. Audretsch, O. Falck and
S. Heblich (2011), Edward Elgar Publishing.
Harhoff, D. (2009), “The role of patents and licenses in securing external finance
for innovation”, Chapter in Handbook of Research on Innovation and
Entrepreneurship, Ed. D. Audretsch, O. Falck and S. Heblich (2011), Edward
Elgar Publishing.
Hellman, T., and M. Puri (2000), “The interaction between product market and
financing strategy: The role of venture capital”, Review of Financial Studies,
13, pp. 959–984.
Hoenen, S., C. Kolympiris, W. Schoenmakers and N. Kalaitzandonakes (2002),
“Do Patents Increase Venture Capital Investments between Rounds of
Financing?” Manuscript presented to Patent Statistics for Decision Makers
2012,
OECD
Paris,
November
2012.
Available
at http://www.oecd.org/site/stipatents/5-3-Patents-signal.pdf
Hsu, D. and Ziedonis, R.H. (2008), “Patents as quality signals for entrepreneurial
ventures”, Academy of Management Best Paper Proceedings.
Kortum, S. and J. Lerner (2000), “Assessing the contribution of venture capital to
innovation”, RAND Journal of Economics, (31), pp. 674-692.
MacMillan, I., Siegel, R. and Subbanarasimha, P. (1985), “Criteria used by
venture capitalists to evaluate new venture proposals”, Journal of Business
Venturing, (1), pp. 119-128.
7. Mann,
R.J. and Sager, T.W. (2007), “Patents, venture capital, and software startups”, Research Policy, (36), pp. 193-208.
OECD (2012), “Building competences and capacity to innovate”, OECD Science,
Technology and Industry Outlook 2012, OECD, Paris.
Pelly, R. and H. Kramer-Eis (2011), “Creating a better business environment for
financing business, innovation and green growth”, OECD Journal: Financial
Market Trends, Vol. 2011(1).
Sichelman, T. and S. Graham (2010), “Patenting by entrepreneurs: An empirical
study”, Michigan Telecommunications and Technology Law Review, Vol. 17,
pp. 111-180.
Source URL: https://innovationpolicyplatform.org/content/ip-and-markets-finance
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