RT Journal Article
SR Electronic
T1 Strategic Value of Corporate Venture Capital Programs
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 55
OP 64
DO 10.3905/jpe.2000.319969
VO 3
IS 3
A1 Chandra S. Mishra
A1 David H. Gobeli
YR 2000
UL https://pm-research.com/content/3/3/55.abstract
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.