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Startups’ demand for non-financial resources: Descriptive evidence from an international corporate venture capitalist

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  • Riepe, Jan
  • Uhl, Kristina

Abstract

Using proprietary data from Europe and Latin America, we show how startup characteristics shape their demand for non-financial resources from their corporate venture capitalists. We first highlight the investors’ commercial network, investors’ ties to other investors and their contacts to retail clients as the most important non-financial resources for early-stage startups. Second, we uncover systematic differences in startups’ demand for non-financial resources depending on startups’ slack financial resources, their business model, and size. Overall, we provide direct evidence on startups’ demand for non-financial resources which is hard to detect and to quantify for researchers based on public data.

Suggested Citation

  • Riepe, Jan & Uhl, Kristina, 2020. "Startups’ demand for non-financial resources: Descriptive evidence from an international corporate venture capitalist," Finance Research Letters, Elsevier, vol. 36(C).
    • Handle: RePEc:eee:finlet:v:36:y:2020:i:c:s1544612319301916
    DOI: 10.1016/j.frl.2019.101321
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    2. Bugl, Benjamin M. & Balz, Frank P. & Kanbach, Dominik K., 2022. "Leveraging smart capital through corporate venture capital: A typology of value creation for new venture firms," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    3. Corvello, Vincenzo & Felicetti, Alberto Michele & Ammirato, Salvatore & Troise, Ciro & Ključnikov, Aleksandr, 2024. "The rules of courtship: What drives a start-up to collaborate with a large company?," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

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    More about this item

    Keywords

    Corporate venture capital; Financial constraints; Non-financial resources; Startup characteristics;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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