Comparative Analysis of Investment Strategies in Technology Sector Ventures
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Abstract
The present paper conducts a detailed comparative analysis of three principal investment approaches—venture capital, corporate venturing, and angel investment—that influence venture success in the technology sector. PLS-SEM is utilized to comprehend the effect of investment size and supportive approach on venture success. The research identifies that venture capital, characterized by a high degree of resources and strategic control, has the maximum positive influence on venture success, followed by corporate venturing and angel investment. Specifically, venture capital exhibited a path coefficient of 0.45, corporate venturing 0.35, and angel investment 0.25, indicating varying levels of positive correlation with venture outcomes. The strategic fit of the investment options with the venture characteristics to maximize the survival potential of technology sector ventures is reiterated in this paper. It also suggests exploring these investment approaches in sub-sectors such as biotech and fintech, as well as examining their effectiveness across different cultural contexts.
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