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New ventures are essential for developing innovations and generating economic and societal value, but they depend on external resources, especially from venture capitalists, who provide seed funding to make necessary advances in the development and commercialization of their innovative products. From the marketing discipline's perspective, the question is whether marketing actions play a role in this early acquisition of critical resources. Building on organizational legitimacy theory, the authors argue that trademark applications are important from day one, as they send important information cues to venture capitalists (e.g., on marketing-related professionalism) that foster the acquisition of venture capital (VC) seed funding. The authors build a dataset using Crunchbase and U.S. Patent and Trademark Office data that follows 5,370 ventures founded between 2007 and 2010 over several years up to 2018. They find that new ventures that file trademark applications have an increased likelihood of acquiring VC seed funding compared with firms that do not file trademark applications. This association is strongest during the first 100 days and diminishes about 1,000 days after foundation. The effect is particularly pronounced in industries characterized by low technological uncertainty and when new ventures do not operate from a location with a cluster of startups, such as Silicon Valley. [ABSTRACT FROM AUTHOR]

The interview with Silicon Valley venture capitalist Mark Coopersmith explores the current landscape of privately funded fusion energy efforts. Coopersmith discusses the challenges and optimism surrounding the commercialization of fusion energy, highlighting the different perspectives of physicists, engineers, entrepreneurs, and investors. The interview delves into the role of venture capital in funding fusion startups, the need for government support in basic research, and the potential spin-off technologies that could emerge from advancements in fusion science. The discussion also touches on the intersection of Silicon Valley culture and the portrayal of tech startups in popular media. [Extracted from the article]

Screening theory explains how decision-makers search for and use external cues to overcome information asymmetry problems under conditions of uncertainty. We introduce screen credibility, screen necessity, and screen salience to the screener as boundary conditions that determine screen efficacy. We test our ideas in the context of corporate venture capital (CVC) funding aimed at industries where firms do not yet compete. These decisions are fraught with uncertainty, so we suggest that CVC decision-makers use the industry shareholdings of a firm's quality shareholders, who are knowledgeable about many industries, as a screen to help them decide whether to continue or terminate CVC funding in that industry. We also hypothesize that screen credibility, screen necessity, and screen salience to the screener condition the fundamental screening relationship. Analysis of CVC funding termination over a period of two decades confirms our ideas. A policy-capturing study administered to executives with CVC experience offers additional support. Our study thus extends screening theory by identifying the factors that activate a screen within the decision-making process. We also add a unique element to the empirical body of CVC research as we uncover the influence of corporate ownership on CVC decision-making. [ABSTRACT FROM AUTHOR]

Startup accelerators, which aim to improve the set of choices representing a startup's entry strategy, have become increasingly influential in both regional development and the strategies of individual startups. This article explores an accelerator's impact on startup performance and whether that impact varies substantially by features of the startup's founding environment. Leveraging data from a leading startup accelerator, I use a regression discontinuity framework to hold startup quality constant so that I can compare the performance of admitted startups to those that do not make the cut, and I examine whether any observed performance differentials are driven by accelerator admission and by characteristics of the startup's earlier environment. I find evidence that startups from better pre-accelerator environments experience stronger gains from accelerator admission. I also find evidence of home bias, as local startups have a stronger treatment effect. These results provide evidence of ecosystem effects whereby the impact of one organizational sponsor in an ecosystem is strongly moderated by other features in the ecosystem. The findings help to explain the concentration of accelerator programs in already successful entrepreneurial ecosystems and reveal how such programs may interact with founding environments to complement resource abundance or magnify prior resource inequalities. [ABSTRACT FROM AUTHOR]

We exploit the staggered introduction of liability waivers when investors hold stakes in conflicting business opportunities as a shock to venture capital (VC) investment and director networks. After the law changes, we find increases in within-industry VC investment and common directors serving on startup boards. Despite the potential for rent extraction, same-industry startups inside VC portfolios benefit by raising more capital, failing less, and exiting more successfully. VC directors serving on other startup boards are the primary mechanism associated with positive outcomes, consistent with common VC investment facilitating informational exchanges in VC portfolios. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Despite substantial investments into new technologies, the adoption of systemic innovations such as construction robotics remains limited. Therefore, this study investigates the discrepancy between the assumed advantages of construction technologies and their actual performance during practical implementation, using construction robotics as the empirical case. Through an abductive thematic analysis of 127 interviews across Europe and North America, we identify six enablers of institutional misalignment: cognitive frame differences, divergent time horizons, conflicting market strategies, product versus revenue focus, varying risk tolerances, and information asymmetry. These misalignments between startup founders' technological logic and investors' economic logic constrain adoption, emphasizing the influence of institutional dynamics over technological feasibility. Our findings suggest these challenges are not unique to construction robotics but may extend to other emerging construction technologies. This highlights the critical need for aligning institutional logics to fully harness the potential of innovation in construction. [ABSTRACT FROM AUTHOR]

The relatively high vulnerability of young Europeans in the labour market compared to other age groups has led many to seek alternative employment solutions, such as entrepreneurship. While not a comprehensive solution, entrepreneurial initiatives among youth can offer a valuable opportunity for their integration into stable and decent work. This research uses Flash Eurobarometer 513—Social Entrepreneurship and Youth to explore entrepreneurial intentions among European Union youth. The study's novelty consists of the division of the target population into four distinct categories based on educational and employment status. The results indicate that EU youth are not a homogeneous group. While the motivation to create their own jobs—is a common feature of all young individuals with entrepreneurial intentions, suggesting a necessity-driven entrepreneurial intention, significant differences emerge among sub-groups. Young people who are only studying exhibit an interest in exploiting business opportunities, highlighting the role of education in fostering opportunity-driven entrepreneurship, while NEETs and employed youth are primarily motivated by better income prospects in the intention to start a business. Additionally, youth engaged in education and those integrated into the labour market are better informed about financing and training opportunities Perceived barriers include a lack of education for NEETs and financial risks for others. Funding preferences also differ: NEETs would rely on personal savings, while those balancing study and work would explore diverse sources, including venture capital and incubator support for starting businesses. Our study enhances the understanding of entrepreneurial intentions among EU young people, offering insights that can guide more effective support strategies for fostering entrepreneurial success. [ABSTRACT FROM AUTHOR]

Venture capital is vital for developing capital markets and the low-carbon transformation of the economy. We used panel data from 27 cities in the Yangtze River Delta urban agglomeration from 2011 to 2022 to investigate how the scale and structure of venture capital influence the intensity of urban carbon emissions using spatial econometric models. We show that an increase in the scale of venture capital can inhibit the increase in the intensity of urban carbon emissions, and the effect is more pronounced in cities with higher pollution and better geographical location. Heterogeneity exists in the carbon-reduction effects of venture capital across industries. The direct carbon reduction effect of venture capital flowing to mid- and low-end industries is stronger and more prominent in cities with higher pollution and less favourable geographical locations. The long-term carbon reduction effect of venture capital flowing to high-end industries is stronger. The mediating effect of technological innovation is prominent, while the effect of industrial structure upgrade is not prominent. The enterprises' willingness and ability to engage in green transformation acts as a positive moderator, whereas the positive moderating effect of the government in that respect is insufficient. This study clarifies the mechanism of venture capital on urban carbon emissions and offers valuable insights for optimising the structure and system of venture capital. [ABSTRACT FROM AUTHOR]

The current research presents and tests a new model: The Vicious Cycle of Status Insecurity. We define status insecurity as doubting whether one is respected and admired by others. Status insecurity leads people to view status as a limited and zero-sum resource, where a boost in the status of one individual inherently decreases that of other individuals. As a result, the insecure become reluctant to share status in the form of highlighting the contributions of others. However, we suggest this reluctance to give others credit is often counterproductive. In contrast to the zero-sum beliefs of the insecure, we propose that giving credit to others boosts the status of both the sharer and the recipient, expanding the overall status pie. Because the insecure miss opportunities to gain status by not elevating others, they reinforce their initial insecurity. We provide evidence for this vicious cycle across 17 studies, including a content analysis of people's personal experiences with status insecurity, an archival analysis of the final speeches held on the reality TV show Survivor (using ChatGPT), and more than a dozen experimental studies. To enhance generalizability and external validity, our experimental contexts include consulting pitches, venture capital competitions, and idea generation contests. To demonstrate discriminant validity, we differentiate status insecurity from self-esteem insecurity. Across the studies, status insecurity consistently decreased status sharing while status sharing reliably increased one's status. Ultimately, status insecurity paradoxically lowers one's status because it reduces the propensity to elevate and celebrate others. [ABSTRACT FROM AUTHOR]

Venture capital (VC) plays a vital role in advancing spinal surgery technologies, driven by the growing burden of spinal disorders and high healthcare costs. Despite increasing interest, trends in VC funding for spinal surgery remain understudied. This study aimed to examine temporal and thematic trends in VC investments in spinal surgery companies from 2000 to 2023. A retrospective cross-sectional study analyzing VC investment trends in privately held US-based spinal surgery companies. Using the PitchBook database, we analyzed 1001 VC investments in 227 spinal surgery companies between 2000 and 2023. Investments were categorized into surgical devices, noninvasive devices, biotechnology, surgical software, and clinical services. Total and annual investments were quantified in USD. From 2000 to 2023, $5.37 billion was invested in spine surgery, with nonsurgical devices receiving the largest share (42.6%), followed by surgical devices (26.3%) and biotechnology (22.2%). Annual investment increased by 1782%, with a decline in 2023 likely due to macroeconomic factors. VC funding in spinal surgery has grown significantly, especially in noninvasive technologies. Further research is needed to assess the long-term impact of these investments and explore alternative financing models. [ABSTRACT FROM AUTHOR]

In recent years, a group of rapidly growing technology-based entrepreneurial enterprises have emerged in China, playing an increasingly important role in the national economy. However, small and mediumsized technology startups have low profitability and high risk, making it difficult to obtain sufficient funds from traditional financing channels. At present, research on venture capital evaluation mainly focuses on the evaluation of projects before venture capital, and empirical methods are mostly used to study the promoting effect of venture capital on performance after investment, ignoring the issue of continuous evaluation after investment. The performance evaluation of risk investment in small and medium-sized high-technology venture enterprises is MADM. In such study, the generalized weighted geometric Bonferroni mean (GWGBM) technique is illustrated for MADM under single-valued neutrosophic sets (SVNSs). We begin by constructing the single-valued neutrosophic number GWGBM (SVNNGWGBM) operator, followed by the introduction of the MADM based on this technique. Subsequently, we provide an illustrative example that evaluates the performance of risk investment in small and medium-sized high-technology venture enterprises, supplemented by some comparative analyses to demonstrate the SVNNGWGBM technique. The principal contributions of this research are highlighted: (1) The maximizing deviation method is employed to derive the weight; (2)The GSVNNWBM technique is developed, setting the stage for the introduction of MADM methods based on GSVNNWBM technique; (3) Numerical example is presented that focuses on the performance evaluation of risk investment in small and medium-sized high-technology venture enterprises, along with a comparative decision analysis. [ABSTRACT FROM AUTHOR]

The article delves into the life and criminal activities of William Wynne Ryland, an artist and engraver in 18th-century London. Ryland's involvement in forgery and financial schemes led to his bankruptcy and eventual arrest for forgery, reflecting the financial uncertainties of the time. His case highlights the intersection of art, finance, and fraud in 18th-century London, shedding light on the strict forgery laws developed to protect the emerging financial system based on trust and speculation. Ryland's story underscores the delicate balance between artistic and monetary value in a complex and interconnected society. [Extracted from the article]

Venture capitalists maximize profits not by 'squeezing' efficiencies out of established companies, but instead by promoting ceaseless experimentation aimed at helping startups achieve 'hypergrowth'. To date, there is limited empirical evidence of both how startups achieve hypergrowth, and the impact of these practices on organizations and workers. This article draws on 19 months of participant-observation research inside a venture-backed startup I call AllDone to trace the links between the institution of venture capital and the organization of work. Although AllDone executives engaged in cost-cutting strategies common to other financialized firms, they also developed distinctive corporate strategies and organizational structures. Each of the company's three work teams was organized to perform interdependent functions in support of venture capital's imperative for rapid and exponential asset value inflation. I conclude with a discussion of the article's implications for research on venture capital, startup work, and the relationship between financialization and work more broadly. [ABSTRACT FROM AUTHOR]

In the rapidly evolving landscape of open innovation, understanding the dynamics of learning is pivotal for corporate success. Yet, the constraints and thresholds inherent in the novel technology sourcing processes remain under-explored. We study 163 firms during the third wave of corporate venture capital activity characterized by the primary focus on innovation to investigate the effects of technology sourcing ambidexterity (the simultaneous pursuit of internal and external sources of innovative ideas) on corporate patenting and realized innovation. Acknowledging limitations of organizational learning, our results indicate the presence of the inverted U-shaped relationship between technology sourcing ambidexterity and innovation and suggest that beyond a certain threshold, increases in ambidexterity are detrimental to organizational learning and corporate innovation because boundary conditions to experimentation as a key element to learning arise. Such restrictions are alleviated by organizational slack, which enhances organizational abilities to orchestrate resources and take calculated risks to go beyond existing internal competencies. Plain English Summary: Proponents of open innovation suggest that combining internal and external sources of innovative ideas often leads to success. We demonstrate that this may be true in some circumstances, but there is a learning threshold for organizations. We argue and demonstrate that this combination, known as technological sourcing ambidexterity, is only beneficial up to a certain point, beyond which further investments in the dual internal–external search for innovative ideas are detrimental for reasons that have to do with organizational learning. Moreover, for those same reasons, the benefits are most likely to be observed for firms with substantial organizational slack. Lean organizations that do not have much slack are less likely to gain strategically from investing in technology sourcing ambidexterity. [ABSTRACT FROM AUTHOR]

This study investigates how venture capitalists (VCs) balance upside potential and downside risk across investment stages. Drawing on the attention-based view, we propose a situated attention mechanism—that is, the investment stage represents a situational consideration affecting VC's attention allocation to different risk dimensions. We argue that varying staging situations drive VCs to prioritize upside potential in the initial stage yet downside risk in the subsequent stage. As such, VCs may initially favor a risky project, but subsequently devalue it. We further propose that these effects are contingent on number of VCs on market, start-up maturity, and VC attention constraints. Our empirical results support our predictions. [ABSTRACT FROM AUTHOR]

This article examines the evolving investment behavior of private equity funds in acquiring venture-capital-backed companies in the United States from 2005 to 2022. Historically, strategic acquisitions by corporate buyers have dominated venture capital exits, with financial acquisitions by private equity funds being less emphasized. Using a dataset of 5,530 acquisitions, we conducted multivariate logistic regression analyses to explore the impact of venture capital fund maturity and industry alignment on the likelihood of a private equity acquisition. Our findings reveal a significant relationship between mature venture capital funds and private equity acquisitions, particularly in earlier periods (2005–2010), with industry alignment becoming a stronger predictor in recent years (2017–2022). This shift underscores the increasing importance of industry expertise in private equity funds' acquisition strategies. The research contributes to the literature by highlighting the changing dynamics of venture capital exits and offering insights into the strategic adaptations of private equity funds over time. The findings highlight that the behavioral shift offers opportunities for both venture capital funds, by opening profitable exit avenues, and private equity funds, by leveraging their industry expertise to access valuable deal flow. [ABSTRACT FROM AUTHOR]

Purpose: The literature suggests that increasing the intensity of compensation incentives for corporate venture capital (CVC) managers can contribute to successful exits of direct CVCs. This study explores the impact of compensation incentives on the successful exits of indirect CVCs under different geographical distances between parent companies and indirect CVC managers. Design/methodology/approach: The authors observed the compensation terms of CVC managers through investment announcements made by listed companies and used a probit regression model to test the hypotheses from a sample of 241 investment events with indirect CVCs in China. Findings: The results show that if parent companies are geographically close to the managers of indirect CVCs, increasing the intensity of compensation incentives for managers will help the successful exit of indirect CVCs. However, if parent companies are not geographically close to indirect CVC managers, increasing the intensity of compensation incentives for managers will not promote the successful exit of indirect CVCs. Originality/value: This study contributes significantly to the CVC literature. First, it sharpens our understanding of the differences in operational mechanisms between direct and indirect CVCs. Second, we find that the threshold returns of indirect CVC managers are non-negligible compensation incentives. Finally, the empirical evidence supports that in indirect CVC investments, the geographical distance between parent companies and managers is concerning because it affects whether compensation incentives contribute to the successful exit of indirect CVCs. [ABSTRACT FROM AUTHOR]

This study provides insights into the criteria applied by entrepreneurs in selecting venture capital investors. Building upon interviews with entrepreneurs, we outline a framework that categorizes the decision-making process into three principal criteria clusters: (1) financial aspects, with a focus on valuation; (2) value-added services; and (3) personal fit attributes. We identify key factors within these categories, such as valuation, network, expertise, reputation, empathy, trust, and the personal connection between investors and entrepreneurs, as pivotal in guiding entrepreneurs" choices for the "right" investor. Our analysis reveals the interrelatedness of these criteria, notably how they align with the valuation aspect. Entrepreneurs exhibit a readiness to accept lower valuations if compensated with enhanced value-added services. Additionally, we uncover novel insights into deal breakers within the financing, decision-making and negotiation processes. Entrepreneurs predominantly halt negotiations due to perceived unfair valuations, inadequate investor expertise, and overly rigorous control measures, including stringent reporting requirements. These findings provide a deeper understanding of the entrepreneurs' decision-making paradigms during financing scenarios, offering valuable implications for entrepreneurs, venture capital managers, and policymakers and addressing gaps in existing research on the adverse functions of specific selection criteria. [ABSTRACT FROM AUTHOR]

National economies can grow and develop depending on the development, application and export of innovative technology. Innovative technologies can emerge as a result of the evaluation of new ideas. The financing required by entrepreneurs in the process of transforming new ideas into a tangible product and obtaining a technological output can be provided through venture capital. Venture capital is a form of financing that refers to providing funds to entrepreneurs with a new idea but not sufficient financial resources, using equity or foreign resources. While venture capital contributes to the growth and development of entrepreneurial companies with an innovative technology product idea, it also contributes to economic development by accelerating the production and export of technological products. Venture capital funds and Venture Capital Investment Trusts are of great importance in encouraging venture capital. Venture Capital Investment Trusts are partnerships that make venture capital investments to a large extent together with capital market instruments and contribute to the growth of entrepreneurial companies. This study aims to evaluate the financial performance of Venture Capital Investment Trusts operating in Turkey and whose shares are traded in Istanbul Stock Exchange. In this context, the current ratio, asset turnover rate, financial leverage ratio, return on asset and return on equity ratios of six Venture Capital Investment Trusts, whose data were available for the 2019 - 2023 period, were calculated and analysed using CRITIC and TOPSIS methods. The findings obtained as a result of the analysis show that the current ratio is the most important and the profitability ratios are less important for Venture Capital Investment Trusts. However, findings were obtained in the study that the financial performance of Hedef and Verusatürk Venture Capital Investment s was better. In order to improve the financial performance of Venture Capital Investment Trusts, it may be beneficial to increase liquid assets, benefit from financial leverage and increase the equity level. [ABSTRACT FROM AUTHOR]