How Do Corporate Venture Capitalists Create Value for ...
How Do Corporate Venture Capitalists Create Value for ...
How Do Corporate Venture Capitalists Create Value for ...
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Table 3<br />
Amount Invested and Pricing of Financing Rounds<br />
This table reports the table reports the results of the regression analysis of venture capital financing round terms. The dataset contain round by<br />
round investments by CVCs and IVCs from 1980 to 2004. Panel A presents the analysis of the amount invested by IVCs and CVCs each<br />
financing round. The dependant variable is log of dollar amount invested by venture capitalists. The unit of observation is firm-round-venture<br />
capitalist. Panel B analyzes the share of the entrepreneurial company transferred to venture capitalists <strong>for</strong> each $1mil. invested. The unit of<br />
observation is firm-rounds. Round of financing is considered to be CVC backed if there is at least one CVC investor in this round. The main data<br />
source is <strong>Venture</strong>Expert database of SDC Platinum. The data was cross-references with other data sources (e.g., Jay Ritter data on firm age, SDC<br />
Platinum IPO list, D&B dataset, and CorpTech Explore database). The t-statistics are reported in parentheses. ***, **, and * indicate significance<br />
of t-statistics at the 1, 5, and 10 percent levels, respectively.<br />
Panel A: Log <strong>Do</strong>llar Amount Panel B: Firm’s Share Transferred to<br />
Invested by VCs Each Round VCs <strong>for</strong> $1mil. Investment Each Round<br />
(1) (2) (3) (4) (5) (6)<br />
CVC Backing Dummy 0.475 0.384 0.382 -0.041 -0.041 -0.041<br />
(21.73)*** (10.06)*** (11.22)*** (3.94)*** (3.61)*** (3.76)***<br />
CVC Industry Match<br />
0.284 0.172 0.256<br />
(Fama-French Industry)<br />
(7.54)*** (2.64)*** (4.39)***<br />
Firm Age at Round Date -0.004 -0.003 -0.004 -0.003 -0.003 -0.003<br />
(3.56)*** (2.49)** (3.91)*** (2.95)*** (2.71)*** (2.76)***<br />
Internet Dummy 0.080 0.063 0.083 -0.016 -0.012 -0.014<br />
(7.71)*** (5.46)*** (7.34)*** (1.56) (1.17) (1.33)<br />
Round Number -0.098 -0.120 -0.119 -0.010 -0.010 -0.010<br />
(47.74)*** (49.47)*** (52.75)*** (3.00)*** (2.45)** (2.60)***<br />
Prior CVC Rounds Dummy -0.138 -0.175 -0.090 0.010 0.009 0.010<br />
Average Reputation of Existing IVCs<br />
(7.38)*** (5.46)*** (3.31)*** (1.69)* (1.64) (1.78)*<br />
Age 0.006 0.001<br />
(16.43)*** (2.81)***<br />
5-year Funds Raised ($mil.) 0.002 0.007<br />
(43.54)*** (0.91)<br />
Total Funds Raised ($mil.) 0.003 0.006<br />
(36.20)*** (1.75)*<br />
Startup/Seed Stage at First Round of VC -0.125 -0.122 -0.118 -0.186 -0.194 -0.191<br />
Financing<br />
(6.44)*** (5.57)*** (5.56)*** (3.03)*** (3.03)*** (3.04)***<br />
Early Stage at First Round of VC 0.001 0.006 0.013 0.020 -0.008 -0.002<br />
Financing<br />
(0.05) (0.35) (0.73) (0.20) (0.07) (0.02)<br />
Expansion Stage at First Round of VC 0.140 0.128 0.123 -0.158 -0.174 -0.170<br />
Financing<br />
(9.92)*** (8.10)*** (8.07)*** (2.25)** (2.35)** (2.35)**<br />
Later Stage at First Round of VC<br />
0.150 0.135 0.136 -0.186 -0.198 -0.194<br />
Financing<br />
(9.77)*** (7.82)*** (8.12)*** (2.86)*** (2.90)*** (2.91)***<br />
Year and Industry Dummies + + + + + +<br />
Observations 94,593 67,174 72,298 12,769 11,534 11,799<br />
R-squared 0.30 0.33 0.33 0.04 0.04 0.04<br />
42
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