How time-inconsistent preferences influence venture capital exit decisions?A new perspective for grandstanding

Considering that the assumption of time consistency does not adequately reveal the mechanisms of exit decisions of venture capital(VC),this study proposes two kinds of time-inconsistent preferences(i.e.,time-flow inconsistency and time-point incon-sistency)to advance research in this field.Time-flow inconsistency is in line with the previous time inconsistency literature,while time-point inconsistency is rooted in the VC fund’s finite lifespan.Based on the assumption about the strategies guiding future behaviors,we consider four types of venture capitalists:time-consistent,time-point-inconsistent,naïve,and sophisticated venture capitalists,of which the latter three are time-inconsistent.We derive and compare the exit thresholds of these four types of venture capitalists.The main results include:(1)time-inconsistent preferences acceler-ate the exits of venture capitalists;(2)the closer the VC funds expiry dates are,t`he more likely time-inconsistent venture capitalists are to accelerate their exits;and(3)future selves caused by time-flow inconsistency weaken the effect of time-point inconsist-ency.Our study provides a behavioral explanation for the empirical fact of young VCs’grandstanding.

Incentive Contracts for Venture Capital Syndication

Aiming at the incentive problems of venture capital syndication at the second and later stages, an game model is set up by principal agent and incentive theory, given that the lead venture capitalist has already some knowledge of the project quality from his initial funding of the project. Under symmetric and asymmetric information, the model analyzes how the optimal syndication contracts induce venture capitalists to truthfully reveal their information to each other, and vary with the level of venture capitalists＇ expertise and information in evaluating projects.

China Venture Capital Review

Based on our joint survey with Zero2ipo.com, Ltd, we have gathered data from 175 domestic and foreign venture capital companies, and mainly focused on 125 companies (92 domestic and 33 foreign) in large scale. According to our research,

China Moves to Boost Venture Capital

The Chinese government recently announced measures to stimulate venture capital(VC)in an effort to sustain the ongoing entrepreneurial wave,To increase investment in cash-starved startups,China will nurture more VC investors,strengthen policy support,

国家竞争力、高技术产业化与金融创新

Under the background of economic globalization, the competitiveness of a country or a region depend no more on traditional basic elements,but on senior ones whose characteristic is high technology, especially on the capability of technique innovation and hi - tech industrialization. Venture capital is the seedbed for hi - tech industry and is most suitable for the growth of hi - tech industry. Second - board market and investment banks are also vital factors for the commercial running of high - tech industry. Thus develop high technology and quicken its industrialization is an imprortant way to raise competitiveness of China. To obtain that goal, we must establish such a mechanism that integrated venture capital,second - board market and investment bank as one to form the institutional foundation for hi - tech industrialization.

The impact of FinTech start-ups on incumbent retail banks’share prices

Background:This study aims to clarify the role of FinTech digital banking start-ups in the financial industry.We examine the impact of the funding of such start-ups on the stock returns of 47 incumbent US retail banks for 2010 to 2016.Methods:To capture the importance of FinTech start-ups,we use data on both the dollar-volume of funding and number of deals.We relate these to the stock returns with panel data regression methods.Results:Our results indicate a positive relationship exists between the growth in FinTech funding or deals and the contemporaneous stock returns of incumbent retail banks.Conclusions:Although these results suggest complementarity between FinTech and traditional banking,we note that our results at the banking industry level are not statistically significant,and that the coefficient signs for about one-third of the banks are negative,but not statistically significant.Since the FinTech industry is young and our sample period short,we cannot rule out that our findings are spurious.

ICT-based agricultural advisory services and nitrogen management practices:A case study of wheat production in China

Excessive use of nitrogen fertilizer in China and its adverse effects on agricultural production have been a national and global concern.In addition to massive public initiatives to promote sustainable farm practices,grass-rooted innovations are emerging in the niche,many of which take the forms of information and communication technologies(ICT)and digital services.This study examines the effects of ICT-based extension services provided by an entrepreneurial startup on adopting sustainable farming practices.We found no significant reduction in N-fertilizer use for wheat production.But the ICT-based services promoted farmers to adapt N-fertilizer use towards site-specific management.The business model of the entrepreneurial venture faces great challenges in becoming participatory and financially sustainable.

Initial coin offerings(ICOs):Why do they succeed?

Recent literature has addressed initial coin offering(ICO)projects,which are an innovative form of venture financing through cryptocurrencies using blockchain technology.Many features of ICOs remain unexplored,leaving much room for additional research,including the success factors of ICO projects.We investigate the success of ICO projects,with our main purpose being to identify factors that influence a project’s outcome.Following a literature review,from which several potential variables were collected,we used a database comprising 428 ICO projects in the banking/financial sector to regress several econometric models.We confirmed the impacts of several variables and obtained particularly valuable results concerning project and campaign variables.We confirmed the importance of a well-structured and informative white-paper.The proximity to certain markets with high availability of financial and human capital is also an important determinant of the success of an ICO.We also confirm the strong dependency on cryptocurrency and the impact of cryptocurrency valuations on the success of a project.Furthermore,we confirm the importance of social media in ICO projects,as well as the importance of human capital characteristics.Our research contributes to the ICO literature by capturing most of the success factors previously identified and testing their impacts based on a large database.The current research contributes to the building of systems theory and signaling theory by adapting their frameworks to the ICO environment.Our results are also important for regulators,as ICOs are mainly unregulated and have vast future potential,and for investors,who can benefit from our analysis and use it in their due diligence.

Factors influencing venture capital perforsmance in emerging technology:The case of China

This study aims to identify the systematic factors influencing venture capital performance in emerging technology.Emerging technologies are the driving force of contemporary economic and social development,but their technologies and markets are subject to great uncertainty.As a high-risk,high-yield investment method,venture capital plays an extremely important role in supporting technological innovation and promoting the upgrading of industrial structures.Following information processing theory,this study applies a quantitative analysis to data from 61 venture capitalists in Beijing,China using structural equation modeling(SEM).The sample firms were established since 2015 and invested mainly in emerging technology startups.The model passed the goodness-of-fit indices test and reveals that information acquisition,venture capital executives,and venture capital strategies have a positive impact on venture capital performance,and venture capital strategies played a partial mediating role.

Refining the Art of Reforming the Corporate Governance of Chinese State-Controlled Listed Companies： Venture Capital and Adaptive Efficiency

The corporate governance of Chinese state-controlled listed companies （SCLCs） has attracted much scholarly attention. Through reviewing the extant literature in this field, it is clear that the overwhelming majority is theoretically underpinned by the lens of agency costs. Another important perspective, adaptive efficiency, has yet to be equally emphasized by scholars. Reflecting on the experience of American venture capital （VC）, this article puts forth that the corporate governance of SCLCs has weakened the fundraising ability of Chinese domestic VC. Taking account of the positive link of a vibrant VC sector and the enhancement of adaptive efficiency, an obvious conclusion is that the corporate governance of SCLCs has already jeopardized the adaptive efficiency of the Chinese economy. Further, the normative implication of this finding is that the refined art of reforming the corporate governance of SCLCs ought to combine and harmonize agency costs with adaptive efficiency.

How to Better Identify Venture Capital Network Communities:Exploration of A Semi-Supervised Community Detection Method

In the field of Venture Capital(VC),researchers have found that VC companies are more likely to jointly invest with other VC companies.This paper attempts to realize a semi-supervised community detection of the VC network based on the data of VC networking and the list of industry leaders.The main research method is to design the initial label of community detection according to the evolution of components of the VC industry leaders.The results show that the community structure of the VC network has obvious distinguishing characteristics,and the aggregation of these communities is affected by the type of institution,the source of capital,the background of personnel,and the field of investment and the geographical position.Meanwhile,by comparing the results of the semi-supervised community detection algorithm with the results of community detection using extremal optimization,it can be shown to some extent that the semi-supervised community detection results in the VC network are more accurate and reasonable.

THE LEGAL INFRASTRUCTURE FOR CREATIVITY IN CHINA:A PERSPECTIVE OF VENTURE CAPITAL

A new concept of“legal infrastructure”has recently been emerging and becoming increasingly popular in China.The concept offers a novel analytical framework to explore China’s existing legal organism for creativity.For this academic mission,the perspective of venture capital is developed by this article in that it has been already been convincingly demonstrated by extant studies that venture capital is an indispensable catalyst for the output level of a country’s creativity.The findings of this article are that the current legal infrastructure in China impedes the life cycle of venture capital,to some degree,and in turn impairs the capability of creativity in China’s economy.

Venture Capital in China

2008 China New Material, New Energy Industries Investment Forum and Exposition The forum will focus will focus on investment in the mew material and mew energy industries,

粤港澳大湾区风险资本的流动格局、演变及机制

As an important innovation flow,venture capital has been examined in urban network research.However,the segmentation of capital categories and the cross-scale connection of capital remain scarcely analyzed.This study focuses on the structure and industry differentiation of venture capital flows in the Guangdong-Hong Kong-Macao Greater Bay Area(GBA)and its cross-scale network characteristics.Based on a venture capital database covering capital amount,investment subject address information,and industry information(2000-2018),this article examines the spatial distribution and network structure of venture capital in the GBA by means of a distance-based test of spatial concentration approach and social network analysis.Key findings show that:(1)Venture capital institutions and startups in the GBA present a high-concentration distribution pattern.In the past 20 years,venture capital activities in the GBA have substantially increased,forming a complex urban network structure with Guangzhou,Shenzhen,and Hong Kong as the core of this network.(2)Different types of venture capital show significantly different urban network structures,with manufacturing,the Internet industry,the financial sector,the cultural media industry,and the medical and health industry as the five industry types with the largest capital flow in the GBA.(3)Cross-scale research on the venture capital network reveals the position of the GBA as a capital hub in China,which forms a dense venture capital connection network with major cities on a national scale.(4)The network structure of venture capital in the GBA is influenced by multi-dimensional proximity,institutional factors,urban economy,and path dependence.Along with these three key mechanisms,the GBA has grown into a national-scale and even global-scale venture capital center.

When New Partners Crowd Out Incumbent Partners:The Moderating Role of Network Chasm

Both the entry and withdrawal of partners have received considerable attention in the venture capital(VC)literature.However,they have been viewed as more or less isolated dynamic choices.This study filled this research gap by analyzing the relationship between new partner addition and incumbent partner withdrawal in VC syndicates.Although the literature on VC partner selection suggests that adding partners can improve the performance of VC syndicates by emphasizing the expected contribution of VCs,the expected development will not occur or may even be reversed if the VC syndicate also experiences the withdrawal of the incumbent partner.We proposed that the VC withdrawal decision is a risk-benefit trade-off.The syndicate’s portfolio similarity with new partners promotes competition between them.This risk of knowledge leakage through the relationship with the new partner jeopardizes the incumbent partner’s competitive advantage.In the meantime,the syndicate’s portfolio similarity with new partners measures the extent to which the knowledge contributed by the new partner matches the needs of the syndicate and can be absorbed by the syndicate,which will enhance the common benefits.Thus,there is a U-shaped relationship between the syndicate’s portfolio similarity with new partners and its incumbent partners’withdrawal possibility.Furthermore,we considered the negative moderating role of partner network characteristics,namely,the relational and structural chasm.Our research not only suggested the dependence of network dynamics to complete the theory of network evolution but also provided advice on partner selection and syndicate governance.We tested our hypotheses using the dataset of VC investment in the United States between 1985 and 2016,based on Thomson Reuter’s Venture Xpert Database and ORBIS Database.