Different Sources of Venture Capital and Their Investment Management Practices

This study examines the differential investment practices that corporate venture capitalists and foreign venture capitalists employ to manage their investment risk. Using panel data of 962 financing rounds in 334 venture capital-backed technology ventures, we investigate how the round size and interval for venture capital syndicates with corporate or foreign investors differ from syndicates without corporate or foreign investors. Venture capital syndicates that involve either corporate or foreign capitalists provide more funding per round in shorter intervals to new ventures.