Abstract

Corporate venture capital (CVC) has rapidly developed into a major funding source for new ventures. CVC has become capable to generate value for both the new venture and the corporate parent (e.g., Wadhwa & Kotha, 2006; Alvarez-Garrido & Dushnitsky, 2015). Extant research shows that corporations engage in CVC activities for financial and strategic reasons (e.g., Battistini et al., 2013). While the financial value can be quantified and measured, the impact of the strategic benefits is more difficult to grasp. Studies on the strategic benefits provide evidence for value being created, but have so far relied on various proxies such as patent data or Tobin’s q to capture the extent (e.g., Dushnitsky & Lenox, 2006). Indeed, some of these studies acknowledge that “we might be underestimating the benefits of CVC investments” (Wadhwa & Kotha, 2006, p. 833). Against this background, this study aims to unveil the multi-faceted dimensions of strategic value of CVC by investigating an investment case that has failed with regard to pure financial goals, but was perceived ‘successful’ from a strategic perspective.

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