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Author: Heli A. Koski Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
The competitive effects of acquisitions made by large US-based technology companies have come under increased regulatory scrutiny over recent years because their acquisition patterns have been viewed as potentially harming competition. This paper studies the impact of acquisitions by large US-based technology companies on the entry dynamics and venture capital financing in their target product markets. We use data from Crunchbase, a start-up directory listing more than 700,000 start-up companies from 742 product markets globally, distinguishing the US and European markets for 2003-2018. Our difference-in-differences estimation results suggest that the technology giants' buyouts subsequently reduced market entry rates and decreased the available venture capital funding in the product markets of the acquired companies. The acquisitions of technology giants seem to generate a so-called “kill zone,” which dissuades the market entry of new companies. The kill zone effect is intense and evident in the product markets close to the data giants' core business areas, where the technology companies have the best prospects of exploiting their existing (consumer) data and competence. We do not find any short-term decline in the market entry or venture capital finance after the data giants' first acquisitions in unconnected markets. In these markets, though, the data giants seem to build up entry barriers in the longer run through their acquisitions. These findings highlight the negative long-term consequences of the tech giants' increased market power through their acquisition behavior in relation to firm entry, competition, and innovation in technology-intensive markets.
Author: Heli A. Koski Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
The competitive effects of acquisitions made by large US-based technology companies have come under increased regulatory scrutiny over recent years because their acquisition patterns have been viewed as potentially harming competition. This paper studies the impact of acquisitions by large US-based technology companies on the entry dynamics and venture capital financing in their target product markets. We use data from Crunchbase, a start-up directory listing more than 700,000 start-up companies from 742 product markets globally, distinguishing the US and European markets for 2003-2018. Our difference-in-differences estimation results suggest that the technology giants' buyouts subsequently reduced market entry rates and decreased the available venture capital funding in the product markets of the acquired companies. The acquisitions of technology giants seem to generate a so-called “kill zone,” which dissuades the market entry of new companies. The kill zone effect is intense and evident in the product markets close to the data giants' core business areas, where the technology companies have the best prospects of exploiting their existing (consumer) data and competence. We do not find any short-term decline in the market entry or venture capital finance after the data giants' first acquisitions in unconnected markets. In these markets, though, the data giants seem to build up entry barriers in the longer run through their acquisitions. These findings highlight the negative long-term consequences of the tech giants' increased market power through their acquisition behavior in relation to firm entry, competition, and innovation in technology-intensive markets.
Author: Koski Heli Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper empirically studies the effect of acquisitions made by the large US-based technology companies on the entry dynamics and venture capital financing in dif-ferent product markets. We use data from 742 prod-uct markets globally, distinguishing the US and Euro-pean markets, for the years 2003-2018. The estimation results based on the difference-in-differences estima-tion suggest that the technology giants' buyouts sub-sequently reduced market entry rates and decreased available venture capital funding in the target product markets of tech giants' acquisitions. In other words, the acquisitions of technology giants seem to generate the so-called kill zone effect. Our empirical analysis further suggests that this effect was strengthened during the 2010s when large technology companies gained increas-ing access to user data. Furthermore, we find that tech-nology giants' acquisitions of platform companies have decreased market entry in non-platform markets. In the US, unlike in the EU area, also available venture capital financing has declined in such non-platform markets from which technology giants have acquired companies.
Author: Daniel Schmidt Publisher: Anchor Academic Publishing (aap_verlag) ISBN: 3954896907 Category : Business & Economics Languages : en Pages : 54
Book Description
The study extends the literature on venture capital by examining whether entrepreneur’s choice for an external investor and certain firm characteristics have an impact on venture success or not. The focus is set on the differences in value creation by venture capitalists and business angels for ventures of the high- and low-technology sector. The assessment of a data set including 252 Series A financing rounds by venture capitalist firms, business angels and collaborative investments of both investors conducted between 2005 and 2012 unveils value enhancing aspects for all three financing solutions. Overall, start-ups initially financed by venture capitalist firms perform best with regard to general venture success, whereas start-ups collaboratively supported by venture capitalists and business angels have the highest chances to exit successfully through a trade sale. It becomes further apparent that ventures located in one of the high-technology industries ‘internet’, ‘pharmaceuticals’ and ‘high-tech’, ventures that are longer established in the market and ventures whose Series A financing round was executed more recently indicate an enhanced likelihood of success.
Author: Ruthann Quindlen Publisher: Warner Books (NY) ISBN: 0446526800 Category : Venture capital Languages : en Pages : 245
Book Description
"The woman who was an early champion of Microsoft and America Online, Ruthann Quindlen, unveils the names and faces, the deals and the dollars, and the vital role of venture capital in creating companies, jobs, and wealth for the 21st century." "Where do you fit in? Confessions of a Venture Capitalist helps you bypass the most common errors made by start-up entrepreneurs. And it provides everyone, businesspersons and casual readers alike, with an intimate, front-row understanding of how the venture capital economy and Silicon Valley are radically changing the world we all inhabit."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved
Author: Tom Eisenmann Publisher: Currency ISBN: 0593137027 Category : Business & Economics Languages : en Pages : 370
Book Description
If you want your startup to succeed, you need to understand why startups fail. “Whether you’re a first-time founder or looking to bring innovation into a corporate environment, Why Startups Fail is essential reading.”—Eric Ries, founder and CEO, LTSE, and New York Times bestselling author of The Lean Startup and The Startup Way Why do startups fail? That question caught Harvard Business School professor Tom Eisenmann by surprise when he realized he couldn’t answer it. So he launched a multiyear research project to find out. In Why Startups Fail, Eisenmann reveals his findings: six distinct patterns that account for the vast majority of startup failures. • Bad Bedfellows. Startup success is thought to rest largely on the founder’s talents and instincts. But the wrong team, investors, or partners can sink a venture just as quickly. • False Starts. In following the oft-cited advice to “fail fast” and to “launch before you’re ready,” founders risk wasting time and capital on the wrong solutions. • False Promises. Success with early adopters can be misleading and give founders unwarranted confidence to expand. • Speed Traps. Despite the pressure to “get big fast,” hypergrowth can spell disaster for even the most promising ventures. • Help Wanted. Rapidly scaling startups need lots of capital and talent, but they can make mistakes that leave them suddenly in short supply of both. • Cascading Miracles. Silicon Valley exhorts entrepreneurs to dream big. But the bigger the vision, the more things that can go wrong. Drawing on fascinating stories of ventures that failed to fulfill their early promise—from a home-furnishings retailer to a concierge dog-walking service, from a dating app to the inventor of a sophisticated social robot, from a fashion brand to a startup deploying a vast network of charging stations for electric vehicles—Eisenmann offers frameworks for detecting when a venture is vulnerable to these patterns, along with a wealth of strategies and tactics for avoiding them. A must-read for founders at any stage of their entrepreneurial journey, Why Startups Fail is not merely a guide to preventing failure but also a roadmap charting the path to startup success.
Author: K.S.V. Menon & Garima Malik Publisher: Notion Press ISBN: 1945400803 Category : Business & Economics Languages : en Pages : 549
Book Description
This is a pioneering effort to provide in one place, alternative sources of funding, professionally structured business plan and other related aspects of raising start-up funds. Beginning with a detailed analysis of the Startup Ecosystem, the role of Incubators, Mentors & Accelerators (IMA) from the stage of ideation to the actual setting up of a project, principal players in this process like Universities, IITs, IIMs, Indian Business Houses, Multinational Corporations and reputed professionals and intrapreneurs have been identified and listed. Pros and cons of angel finance, seed capital, venture capital, crowdfunding, impact investment, hedge fund, debt fund, private equity, valuation, recent deals & exits, emerging trends and ideas in the startup scenario are some of the areas discussed in detail in the publication. Existing success stories and the government’s thrust on creating India as a hub of startups is drawing many students to entrepreneurship. B-schools and IITs are rolling out enthusiastic professionals, accelerators etc. A unique feature of the publication is a section on case studies, which demonstrate bird’s eye view of their birth pain, how they traversed the thorny path, faced failure after failure, changed their ideas and strategies and finally how they reached their destination successfully.
Author: Richard D. Harroch Publisher: Law Journal Seminars Press ISBN: 9781588520319 Category : Business & Economics Languages : en Pages : 1500
Book Description
Here's all the practical information you need to organize, finance and run a new enterprise. Start-Up and Emerging Companies:Planning, Financing and Operating the Successful Business brings you the legal and business savvy of leading experts from law, investment banking and venture capital firms. You'll find extensive coverage of significant topics, such as: the venture financing process and negotiating strategies; corporate, securities and tax laws; the interplay between business and legal considerations; limited liability companies; strategic alliances; employee benefit plans; stock options; contracts; accounting procedures; intellectual property strategies; and developments in Internet law and e-commerce.
Author: Michael Mödl Publisher: Springer Nature ISBN: 3658315903 Category : Business & Economics Languages : en Pages : 207
Book Description
Michael Mödl examines the impact and signaling effects of crowd-based start-up financing on subsequent venture capital funding rounds. The digital era has substantially expanded the entrepreneurial financing landscape and crowdfunding is emerging as a novel way for young innovative firms to secure scarce early-stage funding. As the evaluations of venture capitalists and business angels remain to be consequential for securing critical resources in later stages, questions on the interactions between new and traditional forms of venture financing arise. Drawing on choice experimental research designs the author provides causal empirical evidence that while “the crowd” is generally seen as a negative signal, it can generate certain positive signals which increase the likelihood of professional venture investors to consider crowdfunded start-ups for investment. The presented findings yield important implications for capital-seeking entrepreneurs, investors and public policy. Dr. Michael Maximilian Mödl completed his dissertation under supervision of Prof. Dietmar Harhoff, Ph.D. at Ludwig-Maximilians-Universität München and at the Max Planck Institute for Innovation and Competition.
Author: Jamal Nassar Publisher: ISBN: 9781731208859 Category : Languages : en Pages : 169
Book Description
As Malaysia embarks on the journey to become a high-income, knowledge base country, Jamal Nassar's book, Technopreneurship Financing and Startup Eco-System, provides an important reference reading for government officials, venture capitalist, corporates, founders, etc., and must read for universities, students, etc., interested in contributing to the building out of digital economy aspirations. For viewing startups, its important to understand the difference between iteration ('repetition of a function'), innovation ('something new or to a change made to an existing product, idea, or field') and disruption ('significantly alter the way businesses or entire industries operate').To appreciate the road ahead, one must review the starting point, and Mr Nassar's provides a historical context of the multi-ethnic (including ethnicity and motivation/risk taking), racial and religious country and, importantly, linkage with number of scholarly/academic studies on innovation, entrepreneurship and technology, from Ibn Khaldun to Joseph Schumpeter, is appreciated. Although sampling size is acknowledged small and shallow, the 'guts' of the book are the interviews and connectivity to the attributes of a start eco-system within the context of Malay culture, ethnicity, and diversity. This section is the matrix blue-print 'to do-list' for the above-mentioned stakeholders, where vital issues of access to funding (seeds for start-up), markets/partnerships (scaling), mentoring/accelerators (developing soft skills), etc., are discussed in colorful details. It must not be forgotten that VC investing is about returns, as may be 66% to 75% of portfolio company investments will fail, even amongst Silicon Valley VC funds, but there will be 5X (ponies), 10X (horses) and 20X+ (unicorns) returns from the few, hence, calculated risk-based investing worth the returns. Important segway to Islamic finance. The coverage on Islamic finance and funding start-up ecosystem is 'light,' a proxy for the state of the situation, where there is more hype and less delivery...plus an unsettling (preliminary?) conclusion that the 'risk sharing' element (of Islamic finance) is deterrence to providing risk/growth capital for (early stages of) the start-up eco-system. Though, Islamic finance is more comfortable at Series B/C and beyond, where much of risks associated with product (MVP firmly established), operational (process and people in place), market (addressable market confirmed and CAC is manageable), etc., are reduced/contained. At this stage, its more Islamic PE than Islamic VC. Thus, the book addresses, three most important questions would-be entrepreneurs must ask themselves: (1) do I have what it takes to be a founder of a startup; (2) do I understand the process from startup to scale-up, as book emphasis on universities as important stakeholder in start-up ecosystem, is the Islamic University relevant, feeder of educated Islamic entrepreneurs, for the Islamic digital economy aspirations?; and (3) what are venture investors looking for in entrepreneurs (or founders) and the business model?Rushdi SiddiquiMentor - Islamic Economy StartupsQUEST VENTURES
Author: Heli A. Koski
Author: Heli A. Koski
Author: Koski Heli
Author: Daniel Schmidt
Author: Ruthann Quindlen
Author: Tom Eisenmann
Author: K.S.V. Menon & Garima Malik
Author: William A. Benjamin
Author: Richard D. Harroch
Author: Michael Mödl
Author: Jamal Nassar