The article discusses the role of organizational and governance design in a specific sector, namely the Corporate Venture Capital (CVC). This specific segment of the venture capital industry has so far proved to be at least as successful as venture capital investments carried out by “independent” or “pure” players, but corporate-sponsored initiatives tend to be more shortlived, cyclical and unstable. Unlike traditional venture capital funds, CVC established by corporations usually seek both financial returns and “strategic” benefits. We discuss the dilemma faced by corporations setting-up CVC programs in terms of governance design and ownership arrangements, showing that strategic and financial performances are unlikely to be conjointly maximized, thus leading to the inherent instability of such programs.

Partnership versus Corporation: Untangling the Governance Dilemma of Corporate Venture Capital

GIANFRATE, GIANFRANCO;ZANETTI, LAURA
2008

Abstract

The article discusses the role of organizational and governance design in a specific sector, namely the Corporate Venture Capital (CVC). This specific segment of the venture capital industry has so far proved to be at least as successful as venture capital investments carried out by “independent” or “pure” players, but corporate-sponsored initiatives tend to be more shortlived, cyclical and unstable. Unlike traditional venture capital funds, CVC established by corporations usually seek both financial returns and “strategic” benefits. We discuss the dilemma faced by corporations setting-up CVC programs in terms of governance design and ownership arrangements, showing that strategic and financial performances are unlikely to be conjointly maximized, thus leading to the inherent instability of such programs.
2008
Gianfrate, Gianfranco; Zanetti, Laura
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3245791
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact