PT  - JOURNAL ARTICLE
AU  - Chandra S. Mishra
AU  - David H. Gobeli
TI  - Strategic Value of Corporate Venture Capital Programs
AID  - 10.3905/jpe.2000.319969
DP  - 2000 Aug 31
TA  - The Journal of Private Equity
PG  - 55--64
VI  - 3
IP  - 3
4099  - https://pm-research.com/content/3/3/55.short
4100  - https://pm-research.com/content/3/3/55.full
AB  - Corporate venturing activities, driven largely by the need to be competitive in the Internet Age, have out-paced the accompanying theory on how such programs can create value. This article presents a framework for understanding value creation through a firm's venture capital programs. The framework includes two stages of value creation: a firm creates value through building technology equity and brand equity, and then corporate venturing programs can multiply this value. A mediating variable, free cash flow level, is included to allow for effective use of venture funds.