Corporate Venture Capital (CVC) refers to company divisions that invest in innovative startups. In recent years, they have grown in importance in the world of investments, attracting the attention of various experts keen to investigate the benefits they provide to invested organizations. This thesis aims to evaluate the additional effect of CVC investment on companies supported by independent venture capital (IVC) by drawing a sample from a large number of European, British, and Israeli enterprises and venture capitals founded since 1988. Two performance variables are investigated: the exit valuation and the chance of a successful exit (M&A or IPO). Secondly, this thesis seeks to shed light on a relatively understudied topic: the classification of various forms of CVCs. Scholars believe that CVCs can have diverse goals, which can lead to varied investment behaviors and decisions. The mission statement or articles at the time of foundation of CVCs were used to conduct a categorization, into strategic or financial. The study assesses the various implications that these CVC typologies have on startups by analyzing the same datasets and the performance measures. The findings support CVC investment's favorable effect on startup valuation at acquisition and the likelihood of a successful exit. Concerning the various types of CVCs, the data indicate that strategic CVCs have a positive impact in both the performances analyzed, whereas financial CVCs do not appear to have a substantial influence on the final purchase value and even a negative impact on the exit probability.
I Corporate Venture Capital (CVC) sono divisioni di aziende che investono in startup innovative. Negli ultimi anni, hanno acquisito crescente importanza nel mondo degli investimenti, suscitando l'interesse di numerosi ricercatori desiderosi di studiare i benefici che offrono alle aziende investite. Prendendo come campione un gran numero di aziende e venture capital europee, britanniche ed israeliane, fondate dal 1988, questa tesi si pone l’obiettivo di valutare l’effetto aggiuntivo di un investimento di un CVC, in aziende supportate da venture capital indipendenti (IVC). Nel corso di questa ricerca, vengono esaminate due metriche di performance: il valore all'acquisizione delle startup e la probabilità di un exit di successo (M&A o IPO). In secondo luogo, questa tesi si pone l’obiettivo di fare luce su un argomento ancora poco trattato in letteratura come la classificazione dei diversi tipi di CVC. Gli studiosi concordano che i CVC possano avere obiettivi diversi, che si traducono in comportamenti e scelte d’investimento differenti. Utilizzando la mission o articoli alla fondazione del CVC, è stata condotta una classificazione di essi in strategici e finanziari. Analizzando lo stesso database e le stesse performance descritte precedentemente, sono stati valutati i diversi impatti che queste tipologie di CVC hanno sulle startup. I risultati confermano l’effetto benefico dell’investimento di un CVC, sia per quanto riguarda la valutazione all’acquisizione che la probabilità di exit. Per quanto riguarda i diversi tipi di CVC, i risultati suggeriscono un impatto positivo per i CVC con obiettivi strategici, mentre i CVC finanziari non sembrano influenzare significativamente il valore finale di acquisizione e, addirittura, hanno un effetto negativo sulla probabilità di exit
CVC Impact on the Exit Performances of Invested Companies: Difference between Strategically and Financially Driven CVCs
DALLA VAL, ALESSIO;GIORDANO, RITA
2022/2023
Abstract
Corporate Venture Capital (CVC) refers to company divisions that invest in innovative startups. In recent years, they have grown in importance in the world of investments, attracting the attention of various experts keen to investigate the benefits they provide to invested organizations. This thesis aims to evaluate the additional effect of CVC investment on companies supported by independent venture capital (IVC) by drawing a sample from a large number of European, British, and Israeli enterprises and venture capitals founded since 1988. Two performance variables are investigated: the exit valuation and the chance of a successful exit (M&A or IPO). Secondly, this thesis seeks to shed light on a relatively understudied topic: the classification of various forms of CVCs. Scholars believe that CVCs can have diverse goals, which can lead to varied investment behaviors and decisions. The mission statement or articles at the time of foundation of CVCs were used to conduct a categorization, into strategic or financial. The study assesses the various implications that these CVC typologies have on startups by analyzing the same datasets and the performance measures. The findings support CVC investment's favorable effect on startup valuation at acquisition and the likelihood of a successful exit. Concerning the various types of CVCs, the data indicate that strategic CVCs have a positive impact in both the performances analyzed, whereas financial CVCs do not appear to have a substantial influence on the final purchase value and even a negative impact on the exit probability.File | Dimensione | Formato | |
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2023_10_DallaVal_Giordano_02.pdf
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https://hdl.handle.net/10589/210551