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dc.contributor.authorDe bettignies, Jean-Etienne
dc.contributor.authorChemla, Gilles
dc.date.accessioned2011-05-30T12:57:42Z
dc.date.available2011-05-30T12:57:42Z
dc.date.issued2003-12
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/6366
dc.language.isoenen
dc.subjectfailureen
dc.subjectcompetitionen
dc.subjectmanageren
dc.subjectentrepreneuren
dc.subjectcorporate venture capitalisten
dc.subject.ddc332en
dc.subject.classificationjelM13en
dc.subject.classificationjelM12en
dc.subject.classificationjelG32en
dc.subject.classificationjelG24en
dc.titleCorporate Venture Capital: The Upside of Failure and Competition for Talenten
dc.typeDocument de travail / Working paper
dc.contributor.editoruniversityotherUniversity of British Columbia;Canada
dc.description.abstractenWe consider the motives for a firm to engage in corporate venturing. We argue that in case of failure of a new venture, corporate venture capitalists (CVC) have a strategic advantage relative to traditional venture capitalists (VC) in creating rents after rehiring or refinancing the entrepreneurs. Hence, corporate venturing induces the would-be entrepreneur to exert an effort that is higher than within the corporation, but lower than under traditional venture capital financing. Ceteris paribus, the entrepreneur ends up with fewer shares and less control under CVC financing than under traditional VC financing. Competition from venture capitalists increases corporate venturing activity, the salaries of potential entrepreneurs, and total economic output. Our results are consistent with the observed pro-cyclicality of corporate venture capital activity with venture capital activity.en
dc.publisher.nameCentre for Economic Policy Researchen
dc.publisher.cityLondresen
dc.identifier.citationpages26en
dc.relation.ispartofseriestitleDISCUSSION PAPER SERIESen
dc.relation.ispartofseriesnumber4139en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelEconomie financièreen


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