Exit Channels of Venture Capital : Cross-Border Venture Capital Investments and Globalization of Enterprises
Nakatani, Nao (2019)
Nakatani, Nao
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019120525031
https://urn.fi/URN:NBN:fi:amk-2019120525031
Tiivistelmä
The thesis was written to study the impact of the involvement of venture capitalists on young companies: especially on internationalization of young businesses, when the investments were done by venture capitalists with foreign backgrounds. This was done with primary aim of encouraging entrepreneurs to strategically select investors for their nascent business by analyzing what ‘value-added’ venture capitalists would possibly bring, other than the money they invest. Moreover, the thesis gave particular focus on the changes in exit channel of domestic investments and of cross-border investments. The outcome was essentially addressed to venture market in Finland, since the research was conducted with Finnish venture capitalists.
The theoretical framework included the symbolic value-adding activities of venture capital, geographic distance investments and the risk management methods of venture capital: specialization and diversification and such. The basics of venture financing and venture capital were also described in the paper.
The research took qualitative approach; interviews with Finnish venture capitalists were carried out. Data of annual flow of Finnish venture capital was provided by FVCA (Finnish Venture Capital Association).
The result of the research suggested no direct linkage between the presence of foreign venture capitalists in investments and the foreign exit of the portfolio companies. However, it supported the theory of accelerated market expansion of portfolio companies in foreign countries when it was backed by foreign venture capitalists because of the wider reach and advanced knowledge in those markets that foreign venture capitalists could provide. Additionally, the thesis raised a proposal of less defined concept or, weakening definition of cross-border investment especially in Europe.
The theoretical framework included the symbolic value-adding activities of venture capital, geographic distance investments and the risk management methods of venture capital: specialization and diversification and such. The basics of venture financing and venture capital were also described in the paper.
The research took qualitative approach; interviews with Finnish venture capitalists were carried out. Data of annual flow of Finnish venture capital was provided by FVCA (Finnish Venture Capital Association).
The result of the research suggested no direct linkage between the presence of foreign venture capitalists in investments and the foreign exit of the portfolio companies. However, it supported the theory of accelerated market expansion of portfolio companies in foreign countries when it was backed by foreign venture capitalists because of the wider reach and advanced knowledge in those markets that foreign venture capitalists could provide. Additionally, the thesis raised a proposal of less defined concept or, weakening definition of cross-border investment especially in Europe.