Philanthropic venture capital (PhVC) is a financing option available for social enterprises that, like traditional venture capital, provides capital and value-added services to portfolio organizations. Differently from venture capital, PhVC has an ethical dimension as it aims at maximizing the social return on the investment. This article examines the deal structuring phase of PhVC investments in terms of instrument used (from equity to grant), valuation, and covenants included in the contractual agreement. By content (...) analyzing a set of semistructured interviews and thereafter surveying the entire population of PhVC funds that are active in Europe and in the United States, findings indicate that the non-distribution constraint holding for non-profit social enterprises is an effective tool to align the interests of both investor and investee. This makes the investor behaving as a steward rather than as a principal. Conversely, while backing non-profit social ventures, philanthropic venture capitalists structure their deal similarly as traditional venture capital, as the absence of the non-distribution constraint makes such investments subject to moral hazard risk both in terms of perks and stealing and social impact focus. (shrink)

Frequent and open interaction between venture capitalists and entrepreneurs is necessary for venture capital investments to occur. Increasingly, these investments are made across jurisdictions. The vast majority of these cross-border investments are carried out in a syndicate of two or more VCs, indicating the effects of intra-industry networks needing further analysis. Using China as a model, we provide a novel multidimensional framework to explain cross-border investments in innovative ventures across developed and emerging economies. By analyzing a unique (...) international dataset, we examine worldwide venture capital investment flows from 2000–2012 and consider the effects of geographical, cultural, and institutional proximity as well as institutional and relational trust. We find trust to mitigate the negative effects of geographical and cultural distance, where institutional trust is more relevant for investments in emerging economies, and relational trust is more relevant for investments in developed economies. (shrink)

Firm managers make ethical decisions regarding the form and quality of disclosure. Disclosure can have long-term implications for performance, earnings manipulation, and even fraud. We investigate the impact of venture capital (VC) backing on the quality and informativeness of disclosure controls and procedures for newly public companies. We find that these controls and procedures are stronger, as evidenced by fewer material weaknesses in internal control under Section 302 of the Sarbanes–Oxley Act, when companies are VC-backed. Moreover, these disclosures (...) are informative and are more likely to be followed by subsequent financial statement restatements than are disclosures made by non-VC-backed IPO companies. (shrink)

In this article, we consider a recent trend whereby private equity available from venture capital firms is being deployed toward mission-driven initiatives in the form of impact investing. Acting as hybrid organizations, these impact investors aim to achieve financial results while also targeting companies and funds to achieve social impact. However, potential mission drift in these VCs, which we define as a decoupling between the investments made and intended aims, might become detrimental to the simultaneous financial and social (...) goals of such firms. Based on a content analysis of mission statements, we assess mission drift and the hybridization level of VC impact investors by examining their missions and their investment practices through the criteria of social and financial logic. After examining eight impact-oriented VC investors and their investments in 164 companies, we find mission drift manifest as a disparity between the means and ends in half of the VC impact investors in our sample. We discuss these findings and make suggestions for further studies. (shrink)

Philanthropic venture capital, like traditional venture capital, provides funding and value-added services to a portfolio of entrepreneurial firms. However, TVC differs from PhVC, as the primary goal of TVC is to maximize the economic return of its investments. In contrast, PhVC firms expect their portfolio companies to perform well in terms of both social and economic returns. Using both American and European firms, this paper explores and compares the human capital in PhVC and TVC firm (...) founders. Our results show that there are key differences in both general and specific human capital between these firm types. While both TVC and PhVC firm founders have high levels of commercial experience, TVC firm founders tend to hold degrees in science, engineering, business, and law more frequently than PhVC firm founders. PhVC founders also differ from TVC founders by having greater work experience in the social sector. (shrink)

Black and Gilson have argued that “venture capital can flourish especially – and perhaps only – if the venture capitalist can exit from a successful portfolio company through an initial public offering, which requires an active stock market.” But nothing in the Black and Gilson analysis requires that the exit option be a domestic capital market. In this article, I use the phenomenon of Israeli hi-tech companies going public on the Nasdaq as a case study to (...) explore the connection between a venture capital industry and domestic capital markets in a world of global capital and product markets. (shrink)

Based on the assumption that the long-term value of a venture capital satisfies the algebraic Brownian motion, we develop a continuous-time exit model of venture capital under different exit modes, namely, initial public offering and mergers and acquisitions. The employee incentive problem is analyzed jointly with the exit decision of the firm in terms of the exit timing and the exit mode. Further, the problem of capital exit is considered from two perspectives, namely, optimal (...) class='Hi'>venture capital and social welfare maximization, and the differences between these exit decisions are compared. Our model predicts that the timing of an IPO, the purpose of which is to maximize the utility of the capitalists, lags behind the exit timing, whose purpose is to maximize social welfare. Using a numerical analysis, this paper also proves that increasing the production efficiency, lowering the interest rates, and improving risk management can make the exit decision of venture capitalists converge with that of maximizing social welfare. (shrink)

Over the past decade, investments in agricultural and food technology startups have grown to previously unknown dimensions. Mushrooming agri-food tech startups that promise to solve critical issues in the agri-food system through technological innovation are increasingly perceived as an attractive new investment opportunity for venture capitalists and investors. This paper investigates how digital agri-food technologies are narrated, constructed, and promoted for financial investment. Through qualitative content analysis of agri-food tech industry reports, articles, and commentaries we trace the logic, rationales, (...) and narratives of this most recent investment rush, and reveal its immanent techno-finance fixes. We conceptualize the agri-food imaginaries produced within the agri-food tech discourse as financialized imaginaries, and argue that they are specifically tailored to construct, incentivize, and legitimize this new agri-food tech space for financial investment. In their attempt to raise money from investors, venture capital firms further fuel this development by discursively creating an ‘agri-food tech investment rush’—similar to the land and gold rushes of the past. Investments in agri-food tech startups, however, are presented to investors as both a profitable investment opportunity as well as a moral obligation, allowing for food production to cope with neo-malthusian and environmental threats. This paper contributes to our understanding of digitization as a socio-technical project, which includes the active envisioning and promotion of desirable agri-food futures. (shrink)

This paper is intended to investigate the role of Venture-Capital Syndication background in the relationship between intellectual capital and portfolio firm performance ; specifically, this article examines the moderating effect of VCS’s leading firm background and member heterogeneity on the effect of IC on PFP. This study used a modified VAIC model to measure IC to compose a 4-component variable including human capital, structural capital, relational capital, and innovation capital. The data were collected (...) from VCS-backed and listed firms in China during 2014 to 2018 applying the pooled OLS model for hypotheses test, Generalized Method of Moments to reduce endogeneity and unobserved factor control, and also return on equity instead of ROA for the robustness test. Empirical results showed that IC and its components can improve PFP for VCS-backed firms in China; in detail, IC showed greater impact on performance of firms invested by foreign lead investors than in private or government VCS, specially reflected in the impact of innovation capital on PFP. Furthermore, IC showed weaker impact on PFP of mixed VCS-backed firms compared to pure VCS-backed firms and showed diminished effect on higher VCS member heterogeneity mainly reflected in the impact of relational capital on firm performance. These findings propose a new way of combining IC and VC to improve firm performance and are beneficial to theoretical development of IC and VC as well as a perspective for VC firm managers to choose suitable partners prior to join a VCS. (shrink)

Amid great uncertainty along with the possibility of huge returns, venture investment decisions are both technical and artistic. Past studies have paid much attention to the influences of objective factors on venture investment. However, subjective factors have been relatively ignored. As a salient psychological mechanism, temporal focus is of great importance for venture capitalists when making their investment decisions. This study performed content analysis to investigate how temporal focus at the organizational level affects investment decisions of (...) class='Hi'>venture capital firms. The results revealed that VCs with higher level of long-term orientation prefer to invest in less popular industries and ventures in the expansion period. Meanwhile, they are less likely to invest in very new start-ups. Moreover, long-term oriented VCs tend to re-invest in start-ups in their portfolios instead of just shooting once on numerous single start-ups. However, the author did not find any support on preferences of VCs for ventures with high level of human capital. (shrink)

Are there any business decisions that do not have an ethical dimension? Who decides that a decision is unethical? What impact does ethics have in today’s business environment? The case focuses on the development of Hawaii’s first public-private venture capital fund by three very different entities: the State of Hawaii economic development corporation; a US mainland-based private equity investment firm; and a partnership of two serial entrepreneurs. The case uses a progressive disclosure format so students only read and (...) analyze the actions and ethical issues that occur at a specific point in time: creation of the venture capital fund; selection of startups to be included in the fund’s investment portfolio; and public reaction to decisions and actions by the fund. The case frames the issues confronted at each point as ethical dilemmas. Analysis includes answering questions and formulating recommendations or solutions to each dilemma. (shrink)

Venture capital syndication, an investment model, is gaining increasing attention. This paper uses a new perspective on knowledge transfer to explore the influence mechanism of knowledge heterogeneity in VCS on the innovation performance of entrepreneurial firms. We use firm-year panel data from the Shenzhen Stock Exchange for 2000–2017 and find that the knowledge heterogeneity of VCS includes, at least, management knowledge heterogeneity, investment knowledge heterogeneity, and technical knowledge heterogeneity. In particular, management knowledge heterogeneity and technical knowledge heterogeneity positively (...) affect the IP of entrepreneurial firms. We further find that the intellectual capital of entrepreneurial firms mediates these positive relationships. Moreover, the equity concentration of VCS positively moderates the relationship between knowledge heterogeneity and IP and negatively moderates the relationship between knowledge heterogeneity and IC. This paper provides a new theoretical explanation of the relationship between VCS and IP of entrepreneurial firms from a knowledge transfer perspective and explores the impact paths of this relationship. (shrink)

By creating new ventures and new job opportunities venture capital is essential to a dynamic economy. But it should also be fair and ethical at every stage. Professor Fassin explores the various ethical issues which arise between venture capitalists, entrepreneurs and investors. He teaches at the University of Mons and has written widely on management. From 1988‐1991 he was Secretary General of the European Venture Capital Association. He is partner of the Veerick School of Management (...) of the University of Ghent. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

Successful formation of a new venture is not the most critical indicator of the real success of an entrepreneurial venture. Instead, the sustainability of an entrepreneurial venture (i.e., entrepreneurial sustainability) is the most critical but the most difficulty goal. Entrepreneurial sustainability relies largely on positive collective psychology. This article offers systematic and detailed discussion of the effects of psychological capital on the critical elements of entrepreneurship sustainability – not just that on a successful formation of a (...) new venture. The goal is to shed light on potential practical designs and theoretical improvement in the future. (shrink)

Although early-stage finance is critical to the growth of most ventures, it is even more important for social ventures as they face the challenges of balancing their social and commercial objectives. Drawing on institutional logics and signaling theory, this study uses a panel data set of 3,401 nascent social ventures to investigate the important role philanthropic grant funding plays in the organizational and financial development of social ventures. We find mixed results, with positive effects on employment and subsequent access to (...) debt finance, but no effects on revenues and access to equity. Our findings connect these theories by suggesting philanthropic grants provide social ventures with flexibility to invest in human capital without pushing them to pursue short-term financial objectives, and that receiving a philanthropic grant provides a signal that is interpreted differently by debt and equity financiers. These findings are especially relevant as funders increasingly use grants to support social entrepreneurship. (shrink)

The economic restructuring and rapid rise of the economy in Northeast China have resulted in a proliferation of new ventures. Studying the psychology of new entrepreneurs is conducive to understanding the relationship between human capital and economic growth. The work reported here aims to explore the impact of human capital on economic growth in Northeast China and the influencing factors of psychological capital of new entrepreneurs in the entrepreneurial process. Based on Cobb–Douglas production function, the relationship between (...) labor, physical capital, or human capital and economic growth in Northeast China is analyzed by econometric methods, and a model of human capital and economic growth in Northeast China is constructed. Besides, a psychological capital intervention model is proposed to develop the psychological capital of new entrepreneurs, and the psychological quality structure model of entrepreneurial entrepreneurs and its operation mechanism. The results of the empirical analysis demonstrate that the elasticity coefficient of human capital in Northeast China is 0.15902, five times smaller than that of labor and physical capital. Moreover, 70% of new ventures are willing to accept higher education. The fitting degree of using the PCI model to develop the psychological capital of new ventures is only 0.3%. In addition, the modified external environment PCI instead of the external environment PCI model has a huge operating potential in the macro-entrepreneurial environment. In conclusion, the impact of human capital on economic growth in the northeast is smaller than the impact of labor and material capital investment on regional economic growth. The development of human capital and research on the composition and mechanism of psychological quality of entrepreneurial entrepreneurs are of significant theoretical and practical values to promote the economic growth in the northeast. (shrink)

Although music is commonly conceived of as a humanities, in a wider sense, music is a spiritually infused business – a profession redolent of priceless eternal illumination and beauty. Hence the stories of the life and work of great composers and performers are, in a profound sense, stories about businesspeople of a peculiarly enlightened and noble ilk, dedicated to the creation and perpetuation of an enduring form of incorporeal wealth that I shall designate as sapiential capital. It is notable (...) that whereas some renowned composers are not necessarily deemed to be financial successes as measured within the span of their own mortal lifetimes, the (financial and nonfinancial) heritage of their work for posterity can be colossal. Thus, seen from augmented temporal, spiritual, non-egoistic, and non-materialistic vantage points, many great musicians were (and still are) monumental successes – both qua their humanities legacies and qua their business endeavors. The thrust of the paper is to draw spiritually significant insights that are pertinent for businesspeople aspiring to venture beyond the secular confines of conventional business life attached to materialistic norms and values. The study seeks to examine – from a faith and spirituality standpoint – interdisciplinary linkages between music-qua-humanities and music-qua-business that point to higher purposes and meanings for business life and beyond. (shrink)

In early 2020, Sobeys—one of Canada’s largest food retailers—partnered with Infarm Indoor Vertical Farming to install hydroponic vertical farming units in their retail locations. This partnership aims to build a resilient agri-food ecosystem in the face of climate change. Infarm is one of few vertical farming start-ups to reach ‘unicorn’ status in the recent boom of venture capital-backed urban farming solutions. Working to mitigate the climate crisis is critical, but I take venture capital as the spokesperson (...) for green technologies as intuitively strange. Actor-network theory is a powerful tool for describing networks in which modern technical objects are embedded. By mapping the nodes of Infarm’s actor-network and analyzing how and by what the expertise of a ‘black-boxed’ vertical farm is negotiated, we can identify obligatory points of passage that render the epistemology of the network durable. Ultimately, Infarm’s vertical farming practice and its climate change mitigation logics are moulded by venture capital and its biopolitical epistemology of valuation—a way of thinking that conceptualizes ‘life’, biology and, therefore, the climate in terms of political economy. (shrink)

In case of failure, entrepreneurs could endure various financial, psychological, and social costs. These intertwined costs could affect their learning from failure. All individuals do not react in the same way when dealing with adversity. Rather than focusing on consequences of business failure, we took a more positive approach by using the Conservation of Resources model theory to build our conceptual model. Psychological capital, which refers to “an individual’s positive psychological state of development characterized by high levels of self-efficacy, (...) optimism, hope, and resilience,” could be considered as a resource to recover from entrepreneurial setbacks. We suggest that a high level of psychological capital plays a mediating role in the relationship between the negative consequences of failure and learning from failure. By learning from this experience, failed entrepreneurs will increase their intention to re-create a venture and pursue their entrepreneurial career. This theoretical research, by building a conceptual model based on resources, offers a more positive approach of entrepreneurial failure and investigates key psychological assets, such as psychological capital, that support the development of entrepreneurial resilience rather than the prevention of business failure. (shrink)

Family financing has become a powerful channel for entrepreneurs to obtain entrepreneurial funding. How do family members use intent and quality signals to select new ventures to provide lending support? Building on the signaling theory, this study provides the first quantitative evidence using a sample of 166 samples of family lenders in China. Our findings reveal that psychological capital can support entrepreneurs to obtain family lending. As an intent signal, psychological capital becomes more influential when quality signals, corporate (...) competitive advantage, and firm performance perform more positively. This study emphasizes that family financing support is not only out of love or altruism and extends the literature concerning the influence of positive psychological capital in financial investment decisions. (shrink)

This research aims to identify the investor’s decision-making styles and their impact on entrepreneurial opportunities through the mediation role of entrepreneurial intention and moderation effect of social capital in the healthcare sector of Pakistan. This study applied a structural equation modeling to test the hypotheses on a sample of 400 healthcare investors. Our findings reveal that the conditional indirect relationship of entrepreneurial intention through social capital was significant on opportunity creation and an insignificant influence on opportunity discovery from (...) decision-making styles. This study provides implications for policymakers to enhance entrepreneurial opportunity creation by providing robust social environment investors and encouraging them to create business ventures in the healthcare sector. (shrink)

This study aims to help enterprises enhance their innovation capabilities in the environment of knowledge economy globalization and stand out in the fierce industry competition. Firstly, data on existing higher education theories and innovation theories are analyzed. Secondly, two companies in the sample data are selected for detailed analysis. Finally, research conclusion and corresponding talent management strategies are presented. The results show that the cumulative contribution value of employees is 87.496%. The cumulative contribution value of human capital is 70.322%. (...) The contribution value of cumulative innovation performance is 61.658%. The cumulative contribution value of R&D investment is 45.306%. The coefficient for the overall sample size is 0.509. The employee quality coefficient is 0.452. The correlation coefficient for educational attainment is 0.598. The high-tech service industry has the highest correlation coefficient at 0.504. The auto industry has the highest coefficient at 0.669. The experimental research has drawn the following conclusion: Talents positively affect enterprise innovation performance; Research and Development investment has a positive correlation with enterprise innovation performance; R&D investment has a positive correlation with talents. Through experimental research, the education level of employees is measured by academic qualifications, but the essence of academic qualification measurement is the level of knowledge and skills that employees have. In summary, the study can extend the strategic analysis of the cultivation of innovative talents and play a valuable auxiliary role in cultivating innovative talents. (shrink)

University spin-outs, creating businesses from university intellectual property, are a relatively common phenomena. As a knowledge transfer channel, the spin-out business model is attracting extensive attention. In this paper, the impacts of six equities on the acquisition of USOs, including founders, university, banks, business angels, venture capitals, and other equity, are comprehensively analyzed based on theoretical and empirical studies. Firstly, the average distribution of spin-out equity at formation is calculated based on the sample data of 350 UK USOs. According (...) to this distribution, a radial basis function neural network model is employed to forecast the effects of each equity on the acquisition. To improve the classification accuracy, the novel set-membership method is adopted in the training process of the RBF NN. Furthermore, a simulation test is carried out to measure the effects of six equities on the acquisition of USOs. The simulation results show that the increase of university’s equity has a negative effect on the acquisition of USOs, whereas the increase of remaining five equities has positive effects. Finally, three suggestions are provided to promote the development and growth of USOs. (shrink)

Psychedelic or ecodelic medicines (e.g., psilocybin, ayahuasca, iboga) for the care and treatment of addiction, post‐traumatic stress disorder, cancer, cluster headaches, anxiety, and depression have surged to the forefront of discussions about mental health in the US, leading to the emergence of well‐capitalized biotech companies offering multimillion‐dollar IPOs. Venture capital website Pitchbook reports “continuing investor interest and growing acceptance of what until recently was seen as a fringe area of medicine.” As scholars, activists, and practitioners who have been (...) healed by these medicines and applaud the recent wave of decriminalization after a long, strange trip of mass incarceration and widespread dangerous misinformation, we look forward to a culture that makes these medicines available in a safe and affordable way that respects the lineages of the knowledges that are essentially and not accidentally bundled with these plants—Indigenous and counterculture wisdoms for whom these medicines were never “fringe,” but always foundational. In place of corporadelia's pursuit of standardization, we emphasize the care and wisdom of the Indigenous and countercultural teachings—traditions that have made psychedelics available to the emerging corporate/research partnership in the first place. These knowledge traditions offer foils to the ongoing translation of university peer‐reviewed research into market copy, technical articles, and IPOs, and the concomitant emergence of psychedelic pundits. In particular, we examine instances where prominent researchers have overstated the findings of existing clinical trials in public‐facing representations of the field. We argue that these corporate priorities and tactics are being aided by a new wave of psychedelic “thought leaders” who seek to delegitimize non‐hierarchical approaches to knowledge production and community support within a psychedelic commons. While prominent psychedelic psychiatrists and behaviorists are focused on rooting out and transforming individual habits of mind, we argue that there is another, latent potential for psychedelics to draw attention to—and transform—the invisible, hegemonic infrastructures and ideologies that subtly naturalize and perpetuate deeply unequal societies. (shrink)

Investor recommendation is a critical and challenging task for startups, which can assist startups in locating suitable investors and enhancing the possibility of obtaining investment. While some efforts have been made for investor recommendation, few of them explore the impact of startups’ features, including partners, rounds, and fields, to investor recommendation performance. Along this line, in this paper, with the help of the heterogeneous information network, we propose a FEatures’ COntribution Measurement approach of startups on investor recommendation, named FECOM. Specifically, (...) we construct the venture capital heterogeneous information network at first. Then, we define six venture capital metapaths to represent the features of startups that we focus on. In this way, we can measure the contribution of startups’ features on the investor recommendation task by validating the recommendation performance based on different metapaths. Finally, we extract four practical rules to assist in further investment tasks by using our proposed FECOM approach. (shrink)

In our global economy knowledge-based industry is takingmore importance. Recent years have seen the success of anincreasing number of start-up companies, most technology-basedenterprises financed by private persons or companies, or through venture capital funds and public offering. In manyyears, those companies are faced at certain critical momentswith matters involving intellectual property rights, insiderinformation and raising money. These facts all have an ethicaldimension. There is an increasing need for ethical behaviourfrom all parties involved. A code of conduct of all (...) partiesshould be applied. This paper describes the growth processof a company and the valuation of an innovation project. Itwill overview a number of ethical issues, at different stagesin the innovation business, and in the lifetime of a start-upcompany, such as the problems of intellectual property, theconfidentiality of information, the negotiation processbetween the entrepreneur and the financier, the marketingof raising funds and of an IPO, and finally the informationand insider trading. The paper concludes with aplea for increased ethical ethical behaviour and the needfor rules of best practice for all parties: the inventor,the entrepreneur, the financial investor, and other stakeholders. (shrink)

We are currently living through a period of ‘psychedelic renaissance’, with an increased interest, both in clinical research and in society at large, in the use of psychedelic substances such as LSD, psylocybin, DMT and mescaline. This interest, however, has recently led to an increased influx of venture capital and a fast emerging psychedelic start-up ecosystem. In this article, I will discuss the metaphysical presuppositions of this psychedelic renaissance, and examine how these constitute the ‘pitfalls’ of a psychedelics (...) ideology. I will argue in favour of a new materialism, by and large inspired by Deleuze and Guattari, as a more suitable metaphysical framework to understand psychedelics. New materialism implies both a monistic as well as a political framework, in which the challenges of cognitive capitalism vis-à-vis the psychedelic renaissance can be framed more accurately. (shrink)

After nearly three decades of scientific research, digital mental health (DMH) is having its moment. Millions of dollars of venture capital funding are entering this space (Shah and Berry 2021; Wan...

We examine the issue of entrepreneurial gender bias by focusing on the underlying mechanisms that impact the likelihood of receiving external venture-capital financing. We claim that gender bias negatively affects socially attributed dimensions (such as the stigma ascribed to entrepreneurs who have previously suffered a failure), while it has no effect on objective dimensions (such as the experience gained by entrepreneurs). Our results, based on 2088 US firms, show that female entrepreneurs are less likely to attract external funds (...) if they have previously encountered failure. This negative effect becomes less impactful when novel or serial successful entrepreneurs are considered. Consequently, novel or serial successful entrepreneurs are expected to suffer less from gender bias if compared to peers who experienced a failure during their entrepreneurial career. (shrink)

A plethora of books and articles have appeared recently that announce the global triumph of corporate capitalism and its attendant ideologies. Nowhere are these articles more scathing in their critique of corporatization than in the field of education. However, few have taken a historical perspective in examining the institutional policies and practices that paved the way for private‐sector influence and the adoption of business and administrative sensibilities in higher education. This article examines the University of Michigan between 1945 and the (...) early 1960s as a case study of the kinds of physical and philosophical changes that occurred to usher in the process of corporatization at a major research university. I focus predominantly on one major research effort‐‐the Phoenix Memorial Project‐‐that set in motion many of the forces that would effectively reshape the school's philosophy and practices. The article begins with a discussion of the ideological and political tensions that characterized the course of U‐M scientific research after World War II, particularly the complex intermingling of university, government and corporate interests. Next, I document the Phoenix Project itself and the emphasis on institutional restructuring for capital investment that it inspired. Despite conflicting and contradictory ideas about links between education and both military and corporate research interests, U‐M's top administrators restructured the university to attract venture capital by constructing innovative mechanisms for integrating investors’ needs into the work of academic inquiry. Finally, I want to look at some of the cultural narratives that enabled this triumph of corporate interests to infuse itself into the U‐M's institutional and social mission. (shrink)

The discovery and development of new therapeutics has always been central to improving health worldwide. However, there is ongoing concern regarding the current state of medical innovation. Output from the pharmaceutical industry has been criticized for not being “transformative,” that is, offering substantial improvements in patient outcomes over existing therapeutics. While the cost of drug development continues to rise, breakthrough therapies remain elusive and one half of Phase 3 studies fail. Venture capital, a traditional source of funding for (...) new breakthrough biomedical innovations, has decreased investment by 30% in the biotechnology and medical device sectors from 2007 to 2013. Stakeholders question whether the new drugs approved each year by the FDA —many criticized as marginal improvements over existing therapies — justify the enormous investment. (shrink)

This article considers an international sample of venture capital and private equity funds to assess the role of law, corruption, and culture in setting fund manager fees. With better legal conditions, fixed fees are lower, carried interest fees are higher, clawbacks are less likely, and share distributions are more likely. Countries with lower levels of corruption have lower fixed fees and higher performance fees, and are less likely to have clawbacks and cash-only distributions. Hofstede's measure of power distance (...) is negatively related to fixed fees and the use of cash-only distributions, but positively related to performance fees and clawbacks. Overall, the data strongly indicate that corruption, culture, and legal settings are much more significant in determining fees than fund manager characteristics and/or market conditions. (shrink)

In both the philosophical and visual sense, ‘seeing is believing’ does not apply to nanotechnology, for there is nothing even remotely visible to create proof of existence. On the atomic and molecular scale, data is recorded by sensing and probing in a very abstract manner, which requires complex and approximate interpretations. More than in any other science, visualization and creation of a narrative becomes necessary to describe what is sensed, not seen. Nevertheless, many of the images generated in science and (...) popular culture are not related to data at all, but come from visualizations and animations frequently inspired or created directly from science fiction. Likewise, much of this imagery is based on industrial models and is very mechanistic in nature, even though nanotechnology research is at a scale where cogs, gears, cables, levers and assembly lines as functional components appear to be highly unlikely. However, images of mechanistic nanobots proliferate in venture capital circles, popular culture, and even in the scientific arena, and tend to dominate discourse around the possibilities of nanotechnology. The authors put forward that this new science is ultimately about a shift in our perception of reality from a purely visual culture to one based on sensing and connectivity. (shrink)

Narcosis responds to a call for papers concerning contemporary discourses on disruptors, convergences and addictions. It concerns Martin Heidegger’s distinction between history and the historiographical as an essential thinking on contemporary understandings of technology. The paper’s critical milieu is the still recent uptake of education startups, funded from venture capital, in particular Coursera and Age of Learning. The paper, in four segments, introduces a methodological consideration from Michel Foucault, on the reading of historical discourses. It then introduces the (...) grounding emergence for Heidegger on the historical and the historiographical. It thirdly provides contexts to both Coursera and Age of Learning as global education delivery systems. The concluding section addresses this recent education phenomenon in light of earlier discussion on Foucault and Heidegger. (shrink)

Organizational virtue orientation (OVO), an organizational-level construct, refers to the integrated set of beliefs and values that support ethical character traits and virtuous behaviors. To advance the study of organizational virtue, we examine OVO in firms making their initial public offerings (IPOs), with respect to key external stakeholders that serve as financial intermediaries (i.e., venture capital firms and underwriting banks). Drawing on stakeholder and resource dependence theories, we argue that mutual interdependencies occur between financial intermediaries and IPO firms (...) such that venture capital firms’ ownership levels and underwriter reputation are positively associated with the selection of more virtuous IPO firms. We also argue for the moderating relationship of IPO firm age on these main relationships; since IPO firms have more history and information availability, less importance will be placed on OVO in the selection process. In support of our hypotheses, the results of this study suggest the organizational virtue of IPO firms influences the selection decisions of financial intermediaries by reflecting positively on these key stakeholders to improve legitimacy and reputation. (shrink)

The article begins with an overview of the innovation process and the entrepreneurial process, each treated as separate but interrelated phenomena. The innovation process tracks the evolution of a new idea through time, whereas the entrepreneurial process tracks the activities that entrepreneurs develop to promote and defend the idea against its detractors. The model of innovation and entrepreneurship introduced distinguishes between individual and collective entrepreneurship and identifies two types of collective entrepreneurship: team entrepreneurship and functional entrepreneurship. A Minnesota case study (...) demonstrates the power of both team and functional entrepreneurship. It also illustrates how important the linkages are between the entrepreneurs and their larger community. An innovative idea's development and survival depends on an "ecology of organizations" that provide "venture" capital for analysis and experimentation. The vast networks of contacts and associations represent a form of social capital just as important as the community's economic capital. In this case, both aspects of social creativity - the community resources and the network of social relations - were found to be instrumental in passing and implementing the first public school choice program in the country. (shrink)

Nowadays, many countries are promoting entrepreneurial education or the “innovation, entrepreneurship, and creativity” education. Entrepreneurial education can enhance a nation’s economic competitiveness and give rise to new business. At the moment, entrepreneurial courses are mostly designed by school teachers; however, while school teachers may possess business experience, they lack in entrepreneurial experience. Hence, entrepreneurial education courses call for experts with entrepreneurial experience to contribute to course designs and assist with course teachings. Entrepreneurial education not only improves a student’s entrepreneurial skills, (...) but also enables each student to explore their personal characteristics in order to advance the collaboration efficacy of the team as a whole. This study asked six experts with entrepreneurial experience in the information industry to work with school teachers in course design as well as teaching collaboration. The course design starts with three talk sessions given by professionals who share with students their thoughts and experiences in entrepreneurial products, team organization, fund raising, and profit calculation. Following that, each student is asked to share their own thoughts on entrepreneurial products and start searching for team members and planning their project. During the course, each team receives six individual advising sessions from the professionals, with topics ranging from product modeling, feasibility, product market estimation, fundraising methods, and profit calculation. The experts also provide each team member with personal trait analysis. Last but not least, the course invites five management-level industry professionals to play the role of venture capital investor and evaluate each team’s product modeling based on their presentation. This study reviews the grades given by the experts as well as the evaluations given by the three industry managers to assess whether the entrepreneurial education course’s student entrepreneur teams satisfy the industry’s expectations. (shrink)

Studies show that research and development may not always benefit entrepreneurial firms. This paper focuses on the double-edged effect of R&D activities on attracting institutional investment in entrepreneurial firms. Based on a panel dataset of 700 listed entrepreneurial firms in ChiNext, we document: an inverted-U relationship between R&D intensity and future institutional investment, which we argue is evidence that institutional investors are concerned about R&D overinvestment; an inverted-U relationship between R&D capitalization and future institutional investment, which we argue shows suspicion (...) of the institutional investors towards high R&D capitalization. Furthermore, by splitting institutional investors into venture capitals and non-venture capitals, we confirm that VCs have higher acceptance of both R&D intensity and capitalization as VCs have more expertise to alleviate a certain level of risks. (shrink)