The Flip Side of the Coin: Nascent Technology Ventures and Corporate Venture Funding - Executive Summary

Abstract

My study examines when and why technology entrepreneurs raise venture funding from corporations. I focus on how strategic and social capital drivers influence entrepreneurs when making these critical funding decisions for their technology ventures. I draw on previous research on resource dependence, appropriability, and social capital to argue when entrepreneurs will seek corporate venture funding. Utilizing empirical data on venture fundraising rounds over a 25-year period, I assess which factors explain these funding decisions. My findings suggest that resource needs, technology development, prominent affiliate partners, and socio-regional differences influence entrepreneurs when deciding to raise funding from corporations.

Keywords: entrepreneur, technology, venture, funding, strategic, capital, corporation