A typology of joint ventures: Japanese strategies in the United States
Article Abstract:
The last decade has seen an upsurge in Japanese foreign direct involvement in the U.S. manufacturing sector. A substantial number of these investments have been joint ventures with American partners. These joint ventures are of four types. The first type involves a Japanese firm acquiring an equity position in an entrepreneurial high-technology company that needs expansion financing. The second type occurs when a Japanese firm assumes an equity position in an ailing division of a large American firm. The third type is the case of two parents which together spawn a new separate equity, typically as a venture in some incipient market. The fourth type are those which evolve out of a buyer-supplier relationship. In-depth interviews with top managers in twenty-one joint ventures found that these four types of joint ventures differ in terms of the relative size of the partners, the relative power in the relationship, the strategic contribution each partner makes, and the territorial constraints placed on the joint venture's marketing activities. (Reprinted by permission of the publisher.)
Publication Name: California Management Review
Subject: Business, general
ISSN: 0008-1256
Year: 1988
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Negotiating venture capital financing
Article Abstract:
An entrepreneur who needs to finance a venture must be well prepared before approaching his first round of venture capital financing. Most entrepreneurs have inadequate experience and information when it comes to such negotiations and are vulnerable to strategic and tactical blunders which may close many doors in the venture capital community. This article addresses the problem of placing a valuation on what the entrepreneur brings to the deal; suggests mechanisms for expediting the infusion of capital once the deal has been struck; shows how to deal with rejections constructively; and discusses the changes venture capital financing brings to a business if it is going to avail itself of additional rounds of financing in the future. (Reprinted by permission of the publisher.)
Publication Name: California Management Review
Subject: Business, general
ISSN: 0008-1256
Year: 1986
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A model of venture capitalist investment activity
Article Abstract:
The five sequential steps in investment decision-making for venture capitalists are described and modeled. These steps are: (1) deal origination, identification of possible investment alternatives, (2) deal screening, development of minimum criteria which the selected investment should fulfill, (3) deal evaluation, assessments of risk and return associated with each investment alternative, (4) deal structuring, negotiation of the best investment terms possible for each capital alternative, and (5) post-investment activities, assisting the venture invested in with management advice.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1984
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