SmartCVC : A novel startup selection method for corporate venture capital

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review

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Detail(s)

Original languageEnglish
Title of host publicationInternational Conference on Information Systems 2018 Proceedings
PublisherAssociation for Information Systems
ISBN (Print)9780996683173
Publication statusPublished - Dec 2018

Publication series

NameInternational Conference on Information Systems

Conference

Title39th International Conference on Information Systems (ICIS 2018)
LocationSan Francisco Marriott Marquis
PlaceUnited States
CitySan Francisco
Period13 - 16 December 2018

Abstract

Corporate venture capital (CVC) has been growing rapidly in the past decades. As a critical first step for effective CVC investment, the selection of appropriate portfolio companies is challenging due to the large number of potential targets and the difficulty in evaluating the fit between CVC and different startups. In this study, we tackle this business problem through data science and develop an innovative prediction model, smartCVC, to recommend a short list of highly promising startups to a given CVC investor. To assess the strategic alignment and fit between a CVC investor and a startup, we adopt topic modeling techniques to analyze the business descriptions of both parties and construct a first-order topical similarity measure. We also construct two second-order topical similarity features from the existing CVC-portfolio investment network to characterize how similar a startup's past CVC investors are to a given CVC investor and how similar a CVC investor's past portfolios are to a given startup. Computational experiments on the CrunchBase dataset suggest that the proposed method achieves a significantly better performance than the baseline method.

Research Area(s)

  • Corporate venture capital (CVC), CVC investment network, Data science, Predictive analytics, Target selection

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

SmartCVC : A novel startup selection method for corporate venture capital. / Xu, Ruiyun; Chen, Hailiang; Leon Zhao, J.

International Conference on Information Systems 2018 Proceedings. Association for Information Systems, 2018. (International Conference on Information Systems ).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review