Assessing the impact of public venture capital programmes in the United Kingdom: Do regional characteristics matter?

Munari, Federico; Toschi, Laura

doi:10.1016/j.jbusvent.2014.07.009

Cited by 82 publications

(67 citation statements)

References 92 publications

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“…The fact that DVCs do not have innovation as their main objective does not mean that they are not interested in promoting innovation. Because innovation is instrumental to economic development (Munari and Toschi, 2014), even a DVC has, implicitly, the objective of supporting innovation.…”

Section: Technology-oriented and Development-oriented Governmental Vementioning

confidence: 99%

Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies

2015

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a b s t r a c tThis paper explores whether and how governmental venture capital investors (GVCs) spur invention and innovation in young biotech companies in Europe. To gauge invention we focus on the simple patent stock at the company level, while innovation is proxied by the citation-weighted patent stock. Our findings indicate that GVCs, as stand-alone investors, have no impact on invention and innovation. However, GVCs boost the impact of independent venture capital investors (IVCs) on both invention and innovation. We conclude that GVCs are an ineffective substitute, but an effective complement, of IVCs. We also distinguish between technology-oriented GVCs (TVCs) and development-oriented GVCs (DVCs). We find that DVCs are better at increasing firm's inventions, and that TVCs, combined with IVCs, support innovations.

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Section: Technology-oriented and Development-oriented Governmental Vementioning

confidence: 99%

Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies

2015

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“…Despite their commitment to act as commercial funds, various scholars (Mason and Harrison 2003; The role of venture capitalists in the regional innovation… Kanniainen and Keuschnigg 2004;Schäfer and Schilder 2009) suggest there is a lack of venture-capital skills in publicly backed venture capital funds, to enable effective fund management. According to Munari and Toschi (2010), even if the public intervention was targeted to companies with a real need for government aid, this financial support could be inefficiently managed by local venture capitalists due to their lack of experience and skills. In order to compensate for the lack of skills and experience necessarily to manage the day to day operation of the fund, it is expected that publicly backed VCs investment managers, will seek more actively support from the Business Support community such as patent attorneys, specialised experts, lawyers etc.…”

Section: Cost Theory and Geographical Proximitymentioning

confidence: 99%

The role of venture capitalists in the regional innovation ecosystem: a comparison of networking patterns between private and publicly backed venture capital funds

Pierrakis¹,

Saridakis²

2017

J Technol Transf

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This paper empirically examines the development of social networks among venture capitalists and other professionals of the regional innovation ecosystem. Using an online survey of venture capitalists, the article considers their networking behaviour, focusing particularly on the distinction between those employed by private and those employed by publicly backed venture capital funds, and on the composition and spatial search of their networks. It investigates whether the frequency of interaction between venture capitalists and other members of the innovation ecosystem is associated with the nature of the venture capital funds. The paper provides the first detailed investigation of the relationship between different types of venture capitalists and other players of the innovation ecosystem such as universities incubators, research institutes, and business support organisations. The results show that there are distinctive differences within the two seemingly similar professional groups (private and public venture capitalists), and public dependence of the venture capital fund is strongly and significantly associated with higher volumes of interactions. The more publicly dependent a fund is, the more it interacts with other players of the innovation system. This finding has important implications for both academics and practitioners and suggests that publicly backed funds have a wider role to play in mobilising the different players of the regional innovation ecosystem.

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“…Very few GVCFS have been deemed successful (Brander et al, 2008;Colombo et al, 2014;Lerner, 2009;Mason, 2016;Munari and Toschi, 2014). Many have experienced agency failures (Akerlof, 1976) leading to inadequate approaches to information asymmetries (e.g.…”

Section: Gvcfs and Emerging Role Of Cifsmentioning

confidence: 99%

“…Moreover, the demand-side is often overlooked in such evaluations (Wilson and Silva, 2013). The recent study of public UK VC by Munari and Toschi (2014), which focused on fund exits as a barometer of success, highlighted the problems of fund evaluation, whilst Baldock and Mason (2015) and Baldock (2016) note that it is even more difficult to evaluate funds at an early stage, prior to exits. However, as Lerner (2010) suggests, early stage evaluations are about addressing agency and programme design and delivery issues to refine schemes, ensuring that they are operating efficiently in addressing a market gap, demonstrating additionality, avoiding duplication and displacement and avoiding mission creep.…”

Section: The Emerging Role Of Angel-oriented Cifsmentioning

confidence: 99%

The role of government co-investment funds in the supply of entrepreneurial finance: An assessment of the early operation of the UK Angel Co-investment Fund

Owen

Mason

2016

Environment and Planning C: Politics and Space

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Co-investment funds -which invest alongside private investors, especially business angelsthereby leveraging their networks and experience and minimizing public sector transaction costs -are a recent approach by governments in various countries to address the early stage entrepreneurial funding gap which is perceived as a barrier to the ability of firms to scale-up. However, little literature exists on their operation, impact and effectiveness. This paper assesses the early operation of the UK's Angel Co-investment Fund, established in 2011. Interview evidence from angels and business managers suggests that the Angel Co-investment Fund is improving the availability of finance by enabling firms to raise funding rounds of between »500,000 and »2 m, hence addressing some aspects of the broken finance escalator model. However, our evidence suggests that it is not yet impacting the supply side, either in terms of stimulating the formation of new angel groups or enhancing learning amongst less experienced angels. Some aspects of the operation of the investment process have attracted criticism from angels and entrepreneurs which need to be addressed. Nevertheless, there is sufficient evidence for positive impact to justify the scheme's expansion.

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Assessing the impact of public venture capital programmes in the United Kingdom: Do regional characteristics matter?

Cited by 82 publications

References 92 publications

Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies

Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies

The role of venture capitalists in the regional innovation ecosystem: a comparison of networking patterns between private and publicly backed venture capital funds

The role of government co-investment funds in the supply of entrepreneurial finance: An assessment of the early operation of the UK Angel Co-investment Fund

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