• Home
• Issues
• 1941

Corporate Venture Capital Value Added through Synergy Creation between Parent Firm & Startups

Select Volume / Issue:

• Volume 9,Issue 5, Sept. 2022

Year:

2022

Type of Publication:

Article

Keywords:

Strategic Alliance, Entrepreneurial Financing, Startup, Value Creation, Venture Capital

Authors:

• Widyasthana, G. N. Sandhy
• Pramuwidyatama, M. Gilang

Journal:

IJIRES

Volume:

9

Number:

5

Pages:

169-181

Month:

September

ISSN:

2349-5219

BibTex:

@article{1941, author = "G.N. Sandhy Widyasthana and M. Gilang Pramuwidyatama", abstract = "Amid high uncertainty and disruption, for mature corporations, product service innovation and business development initiatives can be risky. Corporations are mitigating the risks and looking for a new corporate innovation engine by establishing corporate venture capital (CVC) to fuel firms long-term growth and sustainability. CVC is not only investing in potential startups but also conducting non-financial value add activity with its portfolios to bolster the capabilities of its parent firm. Business synergy among startup portfolios and CVC networks can also fundamentally support a startups growth, consequently leading to the growth of the startups and a preferred chance to exit at a suitable valuation for the CVC. This paper shows that CVC outside-in partnership activity can bring new businesses to the parent firm and benefit startups to get more appreciation for raising later-stage funds.", issn = "23495219", journal = "IJIRES", keywords = "Strategic Alliance, Entrepreneurial Financing, Startup, Value Creation, Venture Capital", month = "September", number = "5", pages = "169-181", title = "{C}orporate {V}enture {C}apital {V}alue {A}dded through {S}ynergy {C}reation between {P}arent {F}irm {\&}amp; {S}tartups", volume = "9", year = "2022", }

Abstract:

Amid high uncertainty and disruption, for mature corporations, product service innovation and business development initiatives can be risky. Corporations are mitigating the risks and looking for a new corporate innovation engine by establishing corporate venture capital (CVC) to fuel firms long-term growth and sustainability. CVC is not only investing in potential startups but also conducting non-financial value add activity with its portfolios to bolster the capabilities of its parent firm. Business synergy among startup portfolios and CVC networks can also fundamentally support a startups growth, consequently leading to the growth of the startups and a preferred chance to exit at a suitable valuation for the CVC. This paper shows that CVC outside-in partnership activity can bring new businesses to the parent firm and benefit startups to get more appreciation for raising later-stage funds.

Full text: IJIRES_1941_FINAL.pdf Online version [Bibtex]