This thesis explores institutions under which venture capital investment operates in China and whether and how these institutions affect venture capitalists’ (VCs) investment preferences, ex-ante project screening strategies, and ex-post monitoring activities in China. Based on an analysis of about 50 unstructured and semi-structured interviews and an examination of more than 800 venture capital backed deals, this study finds that regulations on corporate governance impact VCs’ investment activities in China. Due to regulatory restrictions, most foreign venture capital firms are structured under limited partnerships, whereas all domestic venture capital firms (VCFs) are structured as limited companies in China. The difference in corporate governance of VCFs heavily affects VCs’ investment strategies in China. VCFs under limited partnerships show more risktaking capability than those structured as limited companies by investing more in younger projects with higher R&D intensity. Associated with the difference in investment preferences, VCFs under limited partnerships employ stage financing more frequently than those structured as limited companies do. At the same time, the stage financing strategies deployed by VCFs under limited partnerships are closely related to agency problems and transaction uncertainties. The more serious agency problems are the more intensive stage financing will be. However, VCFs structured as limited companies rarely employ stage financing and there is no visible pattern shown in their stage financing arrangements. Finally, similar to the practices in developed countries, VCs in China also take human capital factors as the utmost important criteria. However, they are more demanding in project screening by imposing additional criteria. Further, VCFs under limited partnerships are more demanding and more sensitive to market growth rate and financial returns, and more concerned about public policies. These results may be explained by the weak regulatory institutions in China and the incentives provided by different governance structures. VCFs structured as limited companies are organized hierarchically. Their incentive structure is designed to discourage risk taking and responsibilities. VCFs under limited partnership are more independent in governance that their incentive structures are designed to encourage risk taking and responsibilities.

The objective of this research is to investigate the role of geography in the venture capital investment in the US biotechnology industry. Data include 4,409 quarterly investment deals from the MoneyTree Survey during 1995 and 2008. Strong spatial concentration patterns are identified. Using both ordinary squares regressions and geographically weighted regressions, we find that as the geographic distance between biotechnology firms and their investors decreases, deal size increases. Location in established biotechnology clusters, such as New England and California, helps to bring a larger deal into individual firms as well. Also, the impact of distance decay in these two clusters is more significant than that in other regions. In addition, we find that a global venture capital investing syndication network brings large deals. Furthermore, firms in later stages of development, and/or with few financing rounds, tend to receive more capital per deal.

This thesis explores the role of corporate venture capital (CVC) investment in business growth strategy. It is particularly concerned with identifying the CVC investment options for business development and growth. Business growth strategy involves choices of products (and services) or markets for an organisation to enter or exit. An organisation has a choice between penetrating its existing markets, developing new products for its existing markets, bringing its existing products into new markets, or diversifying its activities by introducing new products into new markets. A framework linking CVC investment with business growth strategy is developed and is used for identifying the relevant contribution which the different CVC investments make to business growth. Firms interested in diversifying their investment portfolio utilise CVC for this purpose. These investments, however, support organisational growth when they are aligned to business strategy, defined by the goal of increasing demand for existing products (or services), bringing new products to existing markets faster, protecting against a competitive threat which involves offering existing products to new markets, and developing new products in new markets. There are instances where CVC investments can be used as a channel for later stage funding of corporate venturing projects. This thesis highlights the fact that contrary to both popular wisdom and academic arguments, CVC funds can still be successful when they function like independent venture capital funds, with reliance on financial return on investment as critical to their success. They are, however, able to endure by executing this practice in line with the corporation’s business growth strategy. Using archival data collected from three case studies over a 34-year period, the framework developed from literature review is applied as a basis for understanding how CVC investment can be linked to business growth strategy.

Venture Capital can play a key role for our future by placing their capital in sustainable investments. They have the capacity to fuel new ventures, sprung from ideas on how to solve the sustainability challenges we face today. In this paper we research the drivers and barriers for sustainable venture capital investment decisions. Our findings show that increased knowledge on sustainability issues is affecting the general public opinion, policies and governance and the way we choose to live, consume and do business. This in turn increases the market potential for sustainable businesses. Therefore, sustainable investments are more and more considered as a good investment, not only in regard to social and ecological aspects but also financial returns. A model with our findings showing the drivers and barriers for sustainable venture capital investment decisions will be presented aiming encourage and push toward a more sustainable future.

Small and medium-sized enterprises (SMEs) contribute to China's economic growth and help maintain social stability. However, SME business leaders have cited access to finance as an obstacle of SMEs' survival and success. The purpose of this multiple case study was to identify main strategies SME entrepreneurs and business leaders used to attract venture capital (VC) investments to achieve financial sustainability and business expansion. Data were collected from a purposive sample of 23 entrepreneurs and leaders from 4 SMEs in China and an analysis of organizational artifacts. The resource-based view theory served as the primary conceptual framework. The data analysis process entailed using coding techniques to identify keywords, narrative segments, and concepts. Member checking ensured the credibility and trustworthiness of the data interpretation and analysis. The process led to 4 themes including developing a unique and pioneering business model, assembling a management team with industry experience, indicating use of raised capital in investing in technology, and engaging with superior principal endorsements during the fund-raising efforts. The implication for positive social change included the potential to enhance the capability of SME entrepreneurs and business leaders to obtain VC funding to support their businesses, which can increase economic development and improve the social stability of local communities in China. The findings from the study may contribute to the development of the SME sector in China and benefit their owners, business leaders, employees, future entrepreneurs, the local community, as well as economy of China.

Funding is one of the most critical resources high potential technology startup (HPTS) ventures need to achieve success. Some startup founders lack access to capital, a critical resource for HPTS founders to create value for customers and capture value for their organizations. Capital constraints can hinder business performance, endanger growth and the ability to grow and scale into the global markets. This multiple case study explored the strategies HPTS firms used to access capital to grow and scale into global markets. Mishra's venture capital investment model and Blank's customer development model served as the conceptual framework for this study. Data were collected from semistructured face-to-face interviews, direct observations, member checking, and a reflective journal. Participants were selected using a purposive sampling of 5 founders from the Silicon Valley of California, who were involved in equity finance decisions in the last 5 years. Yin's 5-step data analysis plan was used in the final data analysis. Eight themes emerged from the study: capital constraint; identification of potential investors; collaboration, guidance, and support; investment potential; investment thesis; measurement of success; passion and preparedness; and prevention of stock dilution. The findings of this study have implications for positive social change. HPTS ventures can use the study findings to gain approval of investment proposals and increase ventures that create value for customers and for the organizations.

This thesis will discuss the role of government in venture capital market and illustrate the national difference of that through a comparative study of government expenditure supporting policies of venture capital investment in the USA, Canada and China. Firstly, the prototype programs designed by Small Business Administration (SBA) of the United States and Canadian policies by the Business Development Bank of Canada (BDC) will be discussed. Secondly, the current Chinese government expenditure supporting policies will then be studied in the context of the Chinese venture capital market’s unique political, economical and legislative background. Ultimately, potential improvements in the future expenditure incentive programs in China will be explored.

This thesis will discuss the role of government in venture capital market and illustrate the national difference of that through a comparative study of government expenditure supporting policies of venture capital investment in the USA, Canada and China. Firstly, the prototype programs designed by Small Business Administration (SBA) of the United States and Canadian policies by the Business Development Bank of Canada (BDC) will be discussed. Secondly, the current Chinese government expenditure supporting policies will then be studied in the context of the Chinese venture capital market’s unique political, economical and legislative background. Ultimately, potential improvements in the future expenditure incentive programs in China will be explored.

Der Erfolg von Innovationen ist unsicher. Wer Kapital in Innovationen investiert, möchte etwas über die Risiken wissen. Mit diesem Wissen können Fondsmanager von Venture-Capital-Gesellschaften ihre Investitionsentscheidung begründen und die Höhe ihrer Renditeforderung ermitteln. In der vorliegenden Arbeit wird untersucht, wie Patente über Investitionsrisiken von Venture-Capital-Beteiligungen informieren. Fondsmanager können die Patente der eigenen Portfoliounternehmen und die Patente der Wettbewerber nutzen, um systematisch Risiken in der Entwicklung ihrer Portfoliounternehmen zu erkennen und zu bewerten. Der Autor definiert und klassifiziert zunächst sowohl Patentdaten als auch Risiken. Er erklärt, wie die relevanten Informationen durch die Verknüpfung von Patentdaten, Risiken und Portfoliounternehmen entstehen und welche Rolle Indikatoren spielen. In der Hauptuntersuchung prüft er, durch welche Patentinformationen sich konkrete Gefahren erkennen lassen und welche Indikatoren sich zu diesem Zweck eignen. Für die Prüfung nutzt er in explorativer Weise die theoriebildende und empirische Literatur bisheriger Patentindikatorenforschung. Im Ergebnis zeigt sich, dass eine Reihe rechtlicher Risiken gut durch Patentinformationen erkennbar ist. Teilweise ist für ihre Bewertung jedoch nach wie vor qualitatives Fachwissen spezialisierter Patentanwälte unumgänglich. Risiken des technologischen Wandels lassen sich nach Meinung des Autors kaum durch Patentinformationen im Voraus erkennen. An einem Beispiel werden die theoretischen und methodischen Schwächen in der Literatur vorherrschender Technologielebenszyklusmodelle verdeutlicht. Wettbewerbsrisiken hingegen können mit Patentinformationen nicht nur gut erkannt werden, sondern die indizierenden Patendaten lassen sich auch statistisch gut erfassen, auswerten und direkt in Scoringmodelle übertragen. Abschließend hinterfragt der Autor kritisch die Zuverlässigkeit und Aussagekraft der Befunde durch grundlegende Klassifizierungsprobleme und gibt Anstöße für weiterführende Forschung auf dem Gebiet der Risiko- und Performancemessung von Venture-Capital-Investments. / The success of innovations is uncertain. People investing capital in innovations would like to know something about their risks. If fund managers of venture capital firms knew these risks, they would be able to justify their investment decisions and to determine the height of their claim for yield. In this thesis, the author examines how patents inform about investment risks of ven-ture capital participations. Fund managers can use those patents of their own portfo-lio companies and the patents of the competitors in order to recognize and evaluate risks systematically in the development of their ventures. First, the author defines and classifies both patent data and risks. He explains how the relevant information arises by linking patent data, risks and venture and he ex-plains the importance of indicators. In the main part of this thesis, he examines by which patent information concrete dangers could be recognized and which indicators are suitable to this purpose. For this examination, he uses theory grounding and em-pirical literature of past patent indicator research in an explorative way. It shows up that a couple of legal risks are well recognizable by patent information. However, in part, the qualitative knowledge of specialized patent lawyers is still needed. According to the author's opinion, risks of technological changes are hardly to recognize by patent information in advance. An example shows the theoretical and methodical weaknesses of the technology life cycle models, predominating in the lit-erature. However, competitive risks can be well recognized by patent information. Furthermore, the indicating patent data can be well seized statistically, evaluated and transferred directly in scoring models, too. Finally, the author discusses the reliability and explanatory power of the results using basic classification problems and gives hints for further research in the area of risk and performance measuring of venture capital investments.