- Consulting Editors
- The Capital Flow from Institutional Investors to Entrepreneurs
- Venture Capital and the Financial Crisis: An Empirical Study across Industries and Countries
- Venture Capital Reputation
- Keys to Fundraising Success in Nascent Venture Capital Firms
- Corporate Venture Capital in the Twenty-First Century: an Integral Part of Firms' Innovation Toolkit
- Corporate Venture Capital: From Venturing to Partnering
- Vipe Financing: Venture (Capital) Investments in Public Equity
- Philanthropic Venture Capital From A Global Perspective: Definition and Investment Strategy
- Venture Capital Before The First Dollar: Deal Origination, Screening, and Evaluation
- Capital Structure Determinants In Growth Firms Accessing Venture Funding
- Venture Capital Staging: Domestic Versus Foreign Vc-Led Investments
- Follow-On Financing of Venture Capital–Backed Companies
- Performance Implications of Venture Capital Syndication Networks
- Valuing Common and Preferred Shares in Venture Capital Financing
- Required Rates of Return and Financial Contracting for Entrepreneurial Ventures
- Financial Contracting in U.S. Venture Capital: Overview and Empirical Evidence
- Time-Inconsistent Preferences and Venture Capital Contracting
- Syndication of Vc Investments, Governance, and Contract Design
- Venture Capital in Germany: The Role of Venture Capital Firms' Experience, Ownership Structure, and Agency Problems
- Venture Capital Law Firms: An Analysis of Equity Investments and Networks
- From Ideas to Products: Financing Innovation and Getting Access to Innovation
- The Impact of Venture Capital on Innovation
- What Drives the Top Line?: Determinants of Sales Revenue in Private Venture–Backed Firms
- Value Added by Angel Investors through Postinvestment Involvement: Exploratory Evidence and Ownership Implications
- The Impact of Venture Capital on the Long-Term Performance of IPO Firms: Evidence from Korea
- Regional Impact of Venture Capital
- Spread, Scope, and Scale in Venture Capital Globalization: A Clustered Globalization Model
- The Development of Venture Capital: Macroeconomic, Political, and Legal Determinants
- A Comparative Analysis of Venture Capital Investment In the United States and Europe
- The Role of Geographic Proximity in Venture Capital
- Geography and Venture Capital Investment in the United States, 1995–2009
- The Role of Government, Venture Capital, and Banks in Closing Liquidity Gaps in the SME Sector of an Emerging Market
Abstract and Keywords
This article analyzes the importance of the rise of corporate venture capital and considers the role of government venture capital. It also studies the emergence of international industry clusters relative to regional clusters. Corporate venturing is on the resurgence as large corporations increasingly look to young entrepreneurial businesses for innovation. Corporations should pursue a strategic alliance approach when making corporate venturing decisions. For instance, allying directly with start-up companies or, indirectly, with traditional venture capitalists could lead to a win-win situation, provided that the incentives of the parties are aligned. Governments should co-invest in venture capital funds with one or more corporate investors. By doing so, governments pursue two main goals: co-investment signals the trustworthiness of venture capital initiatives and promotes the emergence of a sector-specific venture capital market.
Joseph A. McCahery is professor of international economic law at Tilburg University. He is also program director of the masters in finance and law at Duisenberg School of Finance. He has published widely in corporate law, corporate finance, and financial market regulation.
Erik P. M. Vermeulen is senior counsel corporate at Philips in the Netherlands. In this function, he works on matters of corporate governance and corporate structuring within the Philips group of companies, international M&A transactions, and corporate venturing. He is also professor of business law and finance at Tilburg University Law School and Tilburg Law and Economics Center (TILEC), and is chairman of the Department of Business Law. In addition to having held visiting positions at Ghent University in Belgium, Pontificia Universidad Javeriana in Colombia, Interdisciplinary Center (IDC) Herzliya in Israel, and TiasNimbas Business School in the Netherlands, he lectures regularly at the Brabant Center for Entrepreneurship in the Netherlands, the Duisenberg School of Finance in the Netherlands, and Kyushu University Faculty of Law in Japan. He has worked on international projects concerning financial markets, corporate law, and corporate governance in listed and non-listed companies. He has written extensively in the area of corporate law, partnership law, corporate governance, joint ventures, and venture capital. His current research looks at trends in corporate governance, jurisdictional competition, disclosure regimes, financial and venture capital markets, dispute resolution and enforcement, business law/lawyers and innovation, and listings on alternative stock markets. He is a member of the International Venture Club Council and a member of the Board of the Foundation for Education of Inhouse Lawyers in the Netherlands.
Andrew M. Banks is a New York attorney currently serving as legal counsel at Greenhills Ventures. He previously held various financial functions within ING, Lyondell Chemical, and Seagate Technology. He holds an LLM in Law and Finance from Duisenberg School of Finance, an MSc in International Finance from the University of Amsterdam, an LLM in International Law from Leiden University, and an LLB from the University of Strathclyde.
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