Developmental venture capital: conceptualizing the field

Rubin, Julia Sass

doi:10.1080/13691060903184829

Cited by 18 publications

(12 citation statements)

References 33 publications

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“…The administration has proposed to continue to operate the program at this enhanced level in subsequent years. Rubin () presents context on the variety of social objectives of community development venture capital funds.…”

Section: Community Development Venture Capital Fundsmentioning

confidence: 99%

Doing Well by Doing Good? Community Development Venture Capital

Kovner

Lerner

2015

Economics Manag Strategy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper examines the investments and performance of community development venture capital (CDVC). We fi nd substantial differences between CDVC and traditional venture capital (VC) investments: CDVC investments are far more likely to be in nonmetropolitan regions and in regions with little prior venture capital activity. Moreover, CDVC is likely to be in earlier-stage investments and in industries outside the venture capital mainstream that have lower probabilities of successful exit. Even after we control for this unattractive transaction mix, the probability of a CDVC investment being successfully exited is lower. One benefi t of CDVCs may be their effect in bringing traditional VC investment to underserved regions: When we control for the presence of traditional VC investments, each additional CDVC investment results in an additional 0.06 new traditional VC fi rm in a region.

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Section: Community Development Venture Capital Fundsmentioning

confidence: 99%

Doing Well by Doing Good? Community Development Venture Capital

Kovner

Lerner

2015

Economics Manag Strategy

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“…According to Rubin's (2009, p. 336) framework, ''funds with corrective objectives are designed to address inadequate access to traditional venture capital by specific geographies and populations,'' while ''funds with additive objectives are meant to further specific social goals, such as fighting poverty or environmental degradation.'' Corrective development venture capital funds thus provide capital to populations and geographies that are not served by traditional venture capital funds; additive developmental venture capital funds, on the other hand, invest in companies that manufacture or distribute socially beneficial products and encourage their investees to employ progressive employee and environmental processes (Rubin 2009). Lastly, developmental venture capital funds that combine additive and corrective objectives invest in enterprises in distressed geographies that simultaneously generate additional social impact, for example, by producing environmentally friendly products (Rubin 2009).…”

Section: Sector and Impact Objectivementioning

confidence: 98%

What’s in a Name: An Analysis of Impact Investing Understandings by Academics and Practitioners

2014

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Recently, there has been much talk of impact investing. Around the world, specialized intermediaries have appeared, mainstream financial players and governments have become involved, renowned universities have included impact investing courses in their curriculum, and a myriad of practitioner contributions have been published. Despite all this activity, conceptual clarity remains an issue: The absence of a uniform definition, the interchangeable use of alternative terms and unclear boundaries to related concepts such as socially responsible investment are being criticized. This article aims to contribute to a better understanding of impact investing, which could help foster this specific investment style and guide further academic research. To do so, it investigates a large number of academic and practitioner works, highlighting areas of similarity and inconsistency on three levels: definitional, terminological, and strategic. Our research shows that, on a general level, heterogeneity-especially definitional and strategic-is less pronounced than expected. Yet, our research also reveals critical issues that need to be clarified to advance the field and increase its credibility. First and foremost, this includes the characteristics required of impact investees, notably whether they need to be (social sector) organizations that prioritize their non-financial mission over the business side. Our results indicate that there may be different schools of thoughts concerning this matter.

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“…However, as in any case where money is the lingua franca, it is only a matter of time until social and economic disaster strikes (de Swaan [2008]; Achterhuis [2010]). This seems to be why the quality and depth of the relationships with these stakeholders are among the most critical success factors for its future growth (Mouwen [2004] Rubin [2009). This change depends on the impact of the interaction between the values and interests of people and organizations (Dekker and Burger [2001]).…”

Section: Different Worlds Meetmentioning

confidence: 99%