Abstract
This study proposes a model on corporate venturing (CV) investment and examines the impact of venture capital (VC) activity in the economy on CV firms’ investment. The presence of VCs creates competition for entrepreneurs. This reduces CV firms’ expected venturing returns, and thus gives rise to a financial disincentive to CV investment. The empirical prediction of this result is that competition for talent should decrease CV investment. This prediction contradicts previous statements in the theoretical literature on CV.
JEL Codes
D86, G3, L26, M13
Keywords
Corporate venturing, Corporate venturing investment, Venture capital
Recommended Citation
Bade, Marco
(2020)
"The Impact of Competition from Venture Capitalists on Corporate Venturing Investment,"
The Journal of Entrepreneurial Finance:
Vol. 22:
Iss.
1.
DOI: https://doi.org/10.57229/2373-1761.1374
Available at:
https://digitalcommons.pepperdine.edu/jef/vol22/iss1/3
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Included in
Business Administration, Management, and Operations Commons, Corporate Finance Commons, Entrepreneurial and Small Business Operations Commons, Finance and Financial Management Commons
