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What Does Finance Do for Innovation? The New Ways to Raise Capital for Smaller Firms

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (15 November 2020) | Viewed by 4723

Special Issue Editors


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Guest Editor
Department of Law, Economics, Management and Quantitative Methods (DEMM), University of Sannio, 82100 Benevento, Italy
Interests: financing innovation; corporate venture capital; capital structure of SMEs; financial markets and calendar anomalies

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Co-Guest Editor
Department Alexandre Lamfalussy, Faculty of Economics, University of Sopron, Hungary
Interests: SMEs; Business Development; Entrepreneurship Development; Strategic Management; Business; Business Model Innovation; Small Business Management; Project Management; Organizational Learning; Managerial Accounting

Special Issue Information

Dear Colleagues,

In the last ten years, the financial structure of SMEs has been deeply transformed. The relationship between SMEs and conventional investors (banks and other intermediaries) has changed; in this new scenario, SMEs must enlarge their channels to raise capital (crowdfunding, business angels, venture capital, IPO). These new forms have been gaining increasing attention worldwide in particular for target companies, usually technological firms, as start-ups. New investors and small companies are talking, and, in this way, it is possible to assist a change in the relations with investors. The purpose of this Special Issue is to analyze how SMEs finance their activities today.

Assoc. Prof. Matteo Rossi
Guest Editor

References:

  1. Gompers, P., Lerner, J. (2001), “The venture capital revolution”, Journal of Economic Perspectives, 15 (2), pp. 145–168
  2. Gorman, M., Sahlman, W.A. (1989), “What do venture capitalists do?”, Journal of Business Venturing, 4 (4), pp. 231–248.
  3. Guo, B., Lou, Y., Pérez-Castrillo, D. (2015), “Investment, Duration, and Exit Strategies for Corporate and Independent Venture Capital-Backed Start-Ups”, Journal of Economics and Management Strategy, 24 (2), pp. 415–455
  4. Ivanov, V.I., Xie, F. (2010), “Do corporate venture capitalists add value to start-up firms? Evidence from IPOs and acquisitions of VC-backed companies”, Financial Management, 39 (1), pp. 129–152.
  5. Rossi, M., Martini, E. (2019), Venture capitalists and value creation: The role of informal investors in the growth of smaller European firms, International Journal of Globalisation and Small Business, 10(3), pp. 233–247
  6. Rossi, M., Festa, G., Solima, L., Popa, S. (2017), “Financing knowledge-intensive enterprises: evidence from CVCs in the US”, Journal of Technology Transfer, 42(2), pp. 338–353
  7. Rossi, M., Festa, G., Fiano, F., Giacobbe, R. (forthcoming), “To invest or to harvest?: Corporate venture capital ambidexterity for exploiting/exploring innovation in technological business”, Business Process Management Journal
  8. Tykvová, T. (2018), Venture capital and private equity financing: an overview of recent literature and an agenda for future research, Journal of Business Economics, 88(3–4), pp. 325–362
  9. Wallmeroth, J., Wirtz, P., Groh, A.P. (2018), Venture Capital, Angel Financing, and Crowdfunding of Entrepreneurial Ventures: A Literature Review, Publisher Inc., Hanover, MA, USA

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Financing innovation
  • Venture capital and its effect on firm growth
  • Corporate venture capital
  • Crowdfunding
  • Financial Institution in the open innovation era
  • Financial instruments in the innovation ecosystem
  • New ways to raise capital

Published Papers (1 paper)

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Research

25 pages, 2053 KiB  
Article
Financing Energy Innovation: The Need for New Intermediaries in Clean Energy
by Soh Young In, Ashby H. B. Monk and Janelle Knox-Hayes
Sustainability 2020, 12(24), 10440; https://doi.org/10.3390/su122410440 - 14 Dec 2020
Cited by 4 | Viewed by 4293
Abstract
This study aims to advance the understanding of and address the valley of death that is significantly widening in the clean energy domain due to its financing challenges. We conduct a case study on three new investment vehicles in the US energy sector [...] Read more.
This study aims to advance the understanding of and address the valley of death that is significantly widening in the clean energy domain due to its financing challenges. We conduct a case study on three new investment vehicles in the US energy sector (First Look Fund by Activate, Prime Impact Fund by Prime Coalition, and Aligned Climate Capital), which set their missions to contribute to bridging the valley of death in clean energy. While three cases focus on different technological development phases, they raise a consistent point that investment opportunities (and risks) are not assigned to the appropriate investors. We argue that current financial intermediaries have failed to effectively channel funding sources to entrepreneurs, as we evidence network fragmentation and information asymmetries among investor groups and companies. Therefore, we propose three intermediary functions that can facilitate intelligent and effective information flow among investors throughout the entire energy technology development cycle. Our findings highlight the emergence of collaborative platforms as critical pillars to address financing issues among new energy ventures. Full article
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