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Exploring strategic venture capital financing with Silicon Valley style

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  • Wonglimpiyarat, Jarunee

Abstract

The study explores Israel's Silicon Valley style of entrepreneurial financing and venture capital (VC) management. Israel is known as the most successful Silicon Valley-style economy, similar to the US Silicon Valley. The high-tech economy of Israel presents an interesting case of effective institutional setting and policies that transform the country into the innovation nation. The analyses were carried out based on the competitive Diamond model. The results have shown that the thriving Israeli high-tech clusters are the result of Triple Helix interactions and government-led policies in creating VC industry with the financial support of Yozma program as well as foreign funding. Importantly, the government financing did not crowd out but crowd in private investments. The paper provides lessons on Silicon Valley-style management and the proactive role of Israeli government in promoting high-tech clusters which would be useful for other countries to learn from the Israeli experience.

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  • Wonglimpiyarat, Jarunee, 2016. "Exploring strategic venture capital financing with Silicon Valley style," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 80-89.
    • Handle: RePEc:eee:tefoso:v:102:y:2016:i:c:p:80-89
    DOI: 10.1016/j.techfore.2015.07.007
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    Cited by:

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    2. Weiwei Yang & Jiaru Kang & Zhiyuan Ge, 2022. "The Impact of the Upgrading of High-tech Zones on the Total Factor Productivity of Enterprises: Evidence from Guasi-natural Experiments," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 12(1), pages 1-7.
    3. Rama Iyer, Subramanian & Sankaran, Harikumar & Walsh, Steve T., 2020. "Influence of Director Expertise on Capital Structure and Cash Holdings in High-Tech Firms," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    4. Xie, Kefan & Song, Yu & Zhang, Weiyong & Hao, Jiahui & Liu, Zimei & Chen, Yun, 2018. "Technological entrepreneurship in science parks: A case study of Wuhan Donghu High-Tech Zone," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 156-168.
    5. TIAN, Xiaoli & KOU, Gang & ZHANG, Weike, 2020. "Geographic distance, venture capital and technological performance: Evidence from Chinese enterprises," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    6. Arranz, Nieves & Arroyabe, Marta F. & Schumann, Martin, 2020. "The role of NPOs and international actors in the national innovation system: A network-based approach," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    7. Coulibaly, Salifou K. & Erbao, Cao & Metuge Mekongcho, T., 2018. "Economic globalization, entrepreneurship, and development," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 271-280.
    8. P. A. Gloor & A. Fronzetti Colladon & F. Grippa & B. M. Hadley & S. Woerner, 2021. "The impact of social media presence and board member composition on new venture success: Evidences from VC-backed U.S. startups," Papers 2105.10237, arXiv.org.
    9. Del Gaudio, Belinda L. & Porzio, Claudio & Sampagnaro, Gabriele & Verdoliva, Vincenzo, 2020. "Public policy and venture capital: Pursuing the disclosure goal," Research in International Business and Finance, Elsevier, vol. 51(C).
    10. Gloor, Peter A. & Fronzetti Colladon, Andrea & Grippa, Francesca & Hadley, Beth Marie & Woerner, Stephanie, 2020. "The impact of social media presence and board member composition on new venture success: Evidences from VC-backed U.S. startups," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    11. Cailou, Jiang & DeHai, Liu, 2022. "Does venture capital stimulate the innovation of China's new energy enterprises?," Energy, Elsevier, vol. 244(PA).

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