Analysis of decision-making characteristics and effect of Chinese corporate venture capital

Abstract

With the development of innovation and entrepreneurship all over the world, the venture capital financing environment is presenting a trend of diversification, and diversified subjects begin to participate in venture capital activities. Among them, the corporate venture capital led by large industrial companies has become the second largest venture capital activity after the traditional independent venture capital, which has aroused widespread concern in the academic and industrial circles. In recent years, the practice of corporate venture capital has gradually developed from the North America-dominated paradigm to globalization. In emerging economies represented by China, the activity of corporate venture capital is particularly active. However, the existing academic researches and practice guidelines are usually based on the venture capital activities of developed economies represented by the United States, and few studies systematically analyze the decision-making characteristics of corporate venture capital in Chinese context. This problem hinders the further development of academic innovation and enterprise practice. This study attempts to study the main participants of Chinese corporate venture capital through the combination of large sample questionnaire survey, case interview and second-hand data, and analyze their decision-making characteristics and effects. Specifically, this paper will accomplish the above objectives through three sub studies: firstly, this paper will focus on the Chinese corporate venture capital activities. Starting from the eight aspects of venture capital decision-making, this paper makes a detailed analysis of the decision-making characteristics of Chinese corporate venture capital, investigates the similarities and differences of different types of corporate venture capital in eight aspects, and establishes a control group of independent venture capital in China for appropriate comparison. Secondly, this paper further discusses the impact of the decision-making characteristics of Chinese corporate venture capital institutions on the strategic and financial performance of their investment activities, and analyzes the decision-making effects brought by different decision-making styles. Finally, this paper makes a comparative analysis on the decision-making characteristics of the Chinese corporate venture capital and the venture capital/private equity investment in the U.S. context, and illustrates the decision-making characteristics of Chinese corporate venture capital through comparison. Through the development of these three sub studies, this paper attempts to depict a behavior portrait of Chinese corporate venture capital from the perspective of micro decision-making, so as to provide support for the subsequent theoretical exploration and practical development.