Factors influencing venture capital perforsmance in emerging technology: The case of China

Wang, Shuai; Wareewanich, Thitinant; Chankoson, Thitinan

doi:10.1016/j.ijis.2022.08.004

Cited by 12 publications

(8 citation statements)

References 42 publications

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“…On the contrary, if a project is financed totally by debt,

will be the same as

without debt because of the same risk level. Analogically,

will rise as high as venture capital if debt consists most capital, so that we set

at 45% 91 when debt share close to 100%.

and

can be obtained by the following equations:

Where

is the initial cost of equity without debt and is set at 9.04%;

is the initial cost of debt when debt share close to zero and is set as 3.27%, the risk-free rate;

and

are conversion factors to adjust margin and are set at 25 and 4 respectively.…”

Section: Methodsmentioning

confidence: 99%

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Wang,

Wang

2023

iScience

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“…On the contrary, if a project is financed totally by debt,

will be the same as

without debt because of the same risk level. Analogically,

will rise as high as venture capital if debt consists most capital, so that we set

at 45% 91 when debt share close to 100%.

and

can be obtained by the following equations:

Where

is the initial cost of equity without debt and is set at 9.04%;

is the initial cost of debt when debt share close to zero and is set as 3.27%, the risk-free rate;

and

are conversion factors to adjust margin and are set at 25 and 4 respectively.…”

Section: Methodsmentioning

confidence: 99%

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Wang,

Wang

2023

iScience

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“…VC portfolio diversity, measured by the complement of the Herfindahl index based on the distribution of past investments in startups across different industries, indicates a VC's past investments in broader sectors [63], which may enhance the firm's ability to identify the potential of AI across diverse applications. The percentage of a VC firm's investments in the first round could signify the firm's risk preference for early investments [64], which may correlate with their tendency to invest in emerging technologies [65].…”

Section: Control Variablesmentioning

confidence: 99%

Overcoming Uncertainty in Novel Technologies: The Role of Venture Capital Syndication Networks in Artificial Intelligence (AI) Startup Investments in Korea and Japan

Hyun,

Kim

2024

Systems

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This paper investigates how historical inter-firm syndication networks influence venture capitalists’ (VCs) propensity to invest in startups pursuing novel, uncertain technologies, with a focus on artificial intelligence (AI). We theorize that VCs’ positional attributes within cumulative syndication networks determine their access to external expertise and intelligence that aid AI investment decisions amidst informational opacity. Specifically, reachability to prior AI investors provides referrals and insights transmitted across short network paths to reduce ambiguity. Additionally, VC brokerage between disconnected industry clusters furnishes expansive, non-redundant information that is pivotal for discovering and assessing AI opportunities. Through hypotheses grounded in social network theory, we posit network-based mechanisms that equip VCs to navigate uncertainty when engaging with ambiguous innovations like AI. We test our framework, utilizing comprehensive historical records of global venture capital investments. Analyzing the location information of VC firms in this database, we uncovered a history of 14,751 investments made by Korean and Japanese firms. Using these data, we assembled an imbalanced panel dataset from 1984 to 2022 spanning 230 Korean and 413 Japanese VCs, with 4508 firm-year observations. Negative binomial regression analysis of this dataset reveals how historical relational patterns among venture capital firms foster readiness to evaluate unfamiliar innovations.

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“…Venture capital is designed for the 5-10-year development cycle of the main areas represented in developing economies [21]. Examples of these areas are tourism services and hotel business, political and non-governmental organizations (addressing human rights, gender equality, and other socioeconomic aspects), the technological sphere, and industrial development (in particular, agro-industry and animal husbandry) [22,23]. Basically, venture capital focuses on human abilities.…”

Section: Literature Reviewmentioning

confidence: 99%

Prospects for the Development of Venture Capital as an Economic Institution in Post-Soviet Countries

Kovshova,

Ayulov,

Lomakina

et al. 2024

IJSDP

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The development of venture capital in the post-Soviet countries has features of its historical formation. This field of activity is relatively new in the region, although it has deep roots in the history of such developed economies as the United States, the European Space, and Japan. However, the relevance of the research lies in the study of this phenomenon in the region of Central Europe, Asia, and the Caucasus. The paper aims to assess the benefits, risks, and prospects associated with venture capital in the post-Soviet space. The methods and materials used in the study included statistical material processed with statistical programs (SPSS) and mathematical modeling of forecasting results; calculations of economic indicators (ROE, IRR) and the level and required size of venture capital for business development; and the consideration of hypothetical situational models and the level and number of innovations. The chaotic and unstable development of the economic state of the EECCA countries creates various contradictions. Nevertheless, the study confirms the need for venture capital as a driving factor in the development of these economies. This research also covered such categories as crowdfunding and angel investors at the initial stages, even before venture investment. The results of the study find practical applications in stimulating business organizations that, for various reasons, search for new business methods. Venture organizations encourage entrepreneurs to open new business units to solve existing problems in society and various spheres of its functioning. These also organizations motivate investors to promote innovative enterprises in the developing economies of the studied region.

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Factors influencing venture capital perforsmance in emerging technology: The case of China

Cited by 12 publications

References 42 publications

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Influence of carbon derivatives on carbon capture investments in coal-based power sector, a China perspective

Overcoming Uncertainty in Novel Technologies: The Role of Venture Capital Syndication Networks in Artificial Intelligence (AI) Startup Investments in Korea and Japan

Prospects for the Development of Venture Capital as an Economic Institution in Post-Soviet Countries

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