Mark V. Cannice

Managing international technology transfer risk: A case analysis of U.S. high-technology firms in Asia

Abstract Using a comparative case analysis of nine U.S. high-tech manufacturers transferring technology to Asian operations through direct investments (wholly owned operations or joint ventures), we examined how they are protected against competitive loss of these technologies. We found some support for internalization theory in that companies preferred wholly owned operations as a means of protection. However, wholly owned operations were not always possible nor were they always sufficient to protect technologies. We found that companies additionally minimized transfer risks by viewing their technologies as a system, thus transferring only peripheral or dependent technologies. Further, they used prioritizing and segmenting technology levers to guard technology either in conjunction with or in lieu of entry mode.

Managing International Technology Transfer Risk: Alternatives and Complements to Ownership Structure

This exploratory study builds propositions for protecting technology when exploiting it through foreign production. It uses transaction cost as a preliminary basis to explore alternative methods to predict and assess firms’ methods of managing international technology transfer risks. It adds theoretical explanations based on the experiences of nine US high-tech companies’ entries and operations in Asia.

Venture Capitalists' Confidence, Asymmetric Information, and Liquidity Events

Abstract Venture capitalists, in assessing and advising their portfolio firms and seeking viable exit strategies for them through discussions with investment bankers and corporate acquisitors, develop early and sophisticated insight in high potential new ventures and alternative liquidity events for them. Given this early and unique perspective that VCs have of their portfolio firms and potential liquidity events, in this paper, relying on an information asymmetries perspective, we examine whether changes in venture capitalists’ confidence, as informed by VCs’ unique informational advantage, may precede changes in the volume of liquidity events (IPOs and M&As) of venture-backed firms. To explore this notion, we conducted quarterly surveys of VCs for 3.5 years with regard to their confidence in the future high-growth entrepreneurial environment and compared our results with archival data of the volume of IPOs and M&As of venture-backed firms over the same period. We find, in fact, that changes in VC confidence do precede changes in the dollar volume of exits of venture-backed firms in both anticipated and unanticipated ways. Specifically, we find that an increase in VC confidence precedes an increase in IPO activity one quarter later and a decrease in M&A activity two quarters later. These relationships hold while controlling for changes in NASDAQ level. Our findings contribute to the venture capital literature by highlighting the significance of asymmetric information in venture capital markets. Our findings also suggest that entrepreneurs may benefit from monitoring VC confidence as changes in VC confidence appear to have temporal precedence to changes in liquidity opportunities for venture-backed firms.

What do venture capitalists think of venture capital research

Abstract Given the growing economic impact of venture capital and the increasing amount of scholarly work in this field, an assessment of the relevance and value of venture capital research to practicing venture capitalists is appropriate. To better understand its usefulness, we employed a Delphi methodology to solicit professional venture capitalists’ insight on existing research, on expected changes in the venture capital environment, and on the most relevant research topics going forward. We found VCs seek more research in exit strategies and performance, and less in fundraising. VCs also indicated that ongoing structural changes in the industry can inform future research directions.

Operating Modes and Performance: US High-Technology Ventures in China

This chapter develops a theoretical model of optimum entry mode choice that is then modified through examination of 15 US high-technology entries into China. The model is based on foreign operations’ motivation theory, dominant logic theory, technology transfer cost theory and options theory. It is then linked to performance through contingency theory. The final adapted entry model proved effective in predicting the sample firms’ Chinese venture performance.

Venture Capitalists' Confidence, Capital Commitments, and Capital Investments

Confidence among consumers and managers continues to be a closely watched economic indicator. Venture capitalists are essential in the development of many high-growth ventures; however, VC sentiment has not before been systematically tracked. We surveyed VC confidence quarterly since Q1 2004 and find that increasing VC confidence is coincident with increasing VC investment; however, VC confidence decreases one quarter after their increased investment activity, possibly due to buyers remorse. Additionally, VC confidence decreases one quarter after increasing capital commitments to VC industry funds, possibly due to concern of too much money chasing too few good deals.

Silicon Valley Venture Capitalist Confidence Index

Silicon Valley Venture Capitalist confidence in the Bay Area entrepreneurial environment rose in the final quarter of 2017. The upward change in direction of sentiment was levered to increasing amounts of available funding to support entrepreneurs working to introduce breakthrough technologies that aim to transform industries and change the trajectory of business. Macroeconomic metrics, particularly those tied to recent changes in corporate tax policy, also suggest a dynamic business environment where more corporate resources may be deployed to the development and acquisition of innovation. Record public stock market valuations also provide corporations a richer share currency to acquire innovation, thus providing additional exit opportunities and incentives for entrepreneurs and their venture capital backers.

Trends in Confidence among Silicon Valley Venture Capitalists: Q1 2004–Q2 2017

Confidence is an essential factor in making decisions about the future and is a key indicator that is tracked closely for many market participants (e.g., CEOs, consumers, homebuilders, etc.). Venture capitalists, as long-term investors in innovative firms that disrupt existing industries and create new ones, make decisions based in part on their confidence in future conditions. However, there has been relatively little systematic research into venture capitalists’ confidence and its relation to industry outcomes. This article reviews a long-term continuing study of Silicon Valley Venture Capitalists’ confidence in the future high-growth entrepreneurial environment, measuring confidence among Silicon Valley venture capitalists and assessing the factors driving confidence based on the commentary of the responding VCs each quarter from Q1 2004 to the present.

Q4 2014 Silicon Valley Venture Capitalist Confidence Index Research Report

The Silicon Valley Venture Capitalist Confidence Index® (Bloomberg ticker symbol: SVVCCI) is based on a recurring quarterly survey of San Francisco Bay Area/Silicon Valley venture capitalists. The Index measures and reports the opinions of professional venture capitalists on their estimations of the high-growth venture entrepreneurial environment in the San Francisco Bay Area over the next 6-18 months. The Silicon Valley Venture Capitalist Confidence Index® for the fourth quarter of 2014, based on a December 2014 survey of 28 San Francisco Bay Area venture capitalists, registered 3.93 on a 5 point scale (with 5 indicating high confidence and 1 indicating low confidence). This quarter’s index measurement is slightly higher than the previous quarter’s index reading of 3.89.