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How do Corporate Venture Capitalists do Deals? An Exploration of Corporate Investment Practices
Author(s) -
Souitaris Vangelis,
Zerbinati Stefania
Publication year - 2014
Publication title -
strategic entrepreneurship journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.061
H-Index - 46
eISSN - 1932-443X
pISSN - 1932-4391
DOI - 10.1002/sej.1178
Subject(s) - corporate venture capital , business , venture capital , investment (military) , corporation , isomorphism (crystallography) , social venture capital , industrial organization , finance , accounting , chemistry , politics , political science , crystal structure , law , crystallography
How do corporate venture capitalists ( CVCs ) do deals? Conversations with CVCs suggest that the putative view of venture capital investing is incomplete. We draw on 13 cases of CVC programs to document eight ‘corporate investment practices’ that are unique to CVCs . These practices reflect pressure on the CVC units for strategic fit and engagement with the corporation and also an opportunity to utilize parental resources. We then show that CVCs vary their emphasis on corporate investment practices, diverging into two distinct investment logics, ‘integrated’ versus ‘arm's‐length.’ Focus of isomorphism on internal versus external stakeholders explains the emergence of the two logics. Copyright © 2014 Strategic Management Society.