Venture Capital

Venture Capital

 

Due to short innovation cycles, increasing digitalization and global competition, established companies need to constantly reinvent themselves. In order to keep up with the fast-paced environment and to be able to innovate frequently, many established companies are implementing strategies for external knowledge sourcing. One strategy that gained interest from practitioners and researchers alike is Corporate Venture Capital (CVC). CVC is the financing of entrepreneurial new ventures by established companies. While CVC offers corporate investors the opportunity to access new technologies, trends, and market segments, CVC also offers startups access to valuable knowledge, experiences, and resources that would otherwise not be available. However, many past efforts of capitalizing on the complementarities between startups and established companies have not met prior expectations. The differences between startups and established businesses (e.g. different cultures, work habits, and mindsets) pose challenges in making the CVC relationship work properly. Our goal of research is therefore to understand whether, how, and especially under which conditions CVC investments benefit the performance of startups and established companies. Another important research stream investigates how knowledge transfer processes occur in CVC, and what factors impede or foster successful knowledge transfers.

For more information about the research project, please contact Mrs. Daniela Piper (Daniela.Piper@whu.edu).