The study between the environment and internationalization was conducted around two conflicting arguments. The first issue to be discussed in the present situation is the environment. Interest in sustainability is increasing, and research on ESG management continues. In addition, it adds insights into corporate behavior in new business domain expansion. It also suggests that PE invests differently than VCs and provides new added value to the startup ecosystem. These results connect previous studies on VC and PE and deepen our understanding of later-stage startup investment.
Based on Crunchbase’s data on EU startup investments from 2011 to the first half of 2021, we find that: (1) later-stage VC-backed startups and PE-backed startups differ in terms of the industry domain, (2) PE-backed startups tend to have higher revenue when they receive investments, and (3) VC-backed startups are more likely to exit via Initial Public Offering (IPO) and slightly less likely to exit via Mergers and Acquisitions (M&A) than PE-backed startups. PEs, which have traditionally invested in mature companies, have been increasingly investing in later-stage startups in recent years. This paper studies the difference between startup investments by private equity funds (buyout funds PE) and venture capital funds (VC). This effect is due to companies from less developed environmentsīeing able to use their embedded capabilities to better navigate faulty institutional However, we confirmed that the quality of the home country's institutional environment positively moderates the effects of the host environment over ownership choice The literature on the subject points out that lessĭeveloped host environments lead to fewer shares of ownership acquired in CBAs. We analyzed a dataset of 1,390 cross-border acquisitions performed by Latin American firms. Institutionally developed countries are more influenced by poor institutional conditionsįound in host countries.
Interplay between these two important factors. However, most of what is known about CBA strategies relies on the effects of the hostĬountry's environment or the home country's conditions. We also find that as firms gain more international experience, they are more likely to overcome constraints related to these institutions.Ĭross-border acquisitions (CBAs) are one of the key strategies for internationalization. We find that venture capital firms invest in host countries characterized by technological, legal, financial, and political institutions that create innovative opportunities, protect investors’ rights, facilitate exit, and guarantee regulatory stability, respectively. We report results on 216 American venture capital firms potentially investing in 95 countries during the 1990–2002 period. This paper contributes to international business research by examining the features of the institutional environment that influence venture capital firms’ foreign market entry decisions, and how their effect changes as firms acquire experience. Given the specific nature of venture capital investing, a new theoretical perspective is needed to understand foreign venture capital investments. The cross-border expansion of venture capital firms presents an interesting case of internationalization, because they are at variance with both conventional portfolio and direct investment models. In recent years, venture capital firms have increasingly turned to foreign countries in search of investment opportunities.
0 kommentar(er)
