The Impact Of Corporate Venture Capital On Enterprise Value Creation

With the continuous advancement of the process of economic globalization,the rapid changes in science and technology,and the sudden emergence of entrepreneurial companies,listed companies are facing an increasingly complex and volatile market competition(Ceccagnoli,Higgins,and Kang,2018).How to obtain sustainable value creation capabilities? and market competitive advantage.In recent years,the investment environment of the global capital market has become more and more mature,and listed companies have actively participated in corporate venture capital(CVC)activities as an important way to obtain innovation and development momentum.According to the "Global CVC Investment Research Report in the First Half of 2021" released by CB Insight,after experiencing the low ebb of global CVC investment activities in 2020,it has ushered in a strong recovery in global CVC investment activities in 2021.In recent years,the development momentum of corporate venture capital in my country has also been rapid.More and more listed companies regard corporate venture capital as a key strategic choice to seek growth opportunities and consolidate their competitive position,and hope that corporate venture capital will be locked in advance to pursue R&D innovation,Entrepreneurs lacking growth capital should provide support in resource acquisition,strategic planning,operation management,etc.to improve the efficiency of industrial resources,tap the value of innovative resources,promote industrial integration and upgrading,and accelerate industry mergers and reorganizations.However,compared with the vigorous development of my country’s corporate venture capital practice,the academic community has not paid enough attention to my country’s corporate venture capital,and the relevant research system is still in its infancy.There are few research results in the field of corporate venture capital in my country,and most of the literature uses empirical analysis methods,and there is a lack of literature that uses case study methods to analyze the specific operation process of corporate venture capital.Therefore,this paper takes Tigermed’s implementation of corporate venture capital in Mous Pharmaceuticals as an example to conduct research,hoping to further enrich and supplement my country’s research in the field of corporate venture capital.First,with the help of the literature research method,this paper systematically sorts out the theoretical research results in the field of corporate venture capital from the three dimensions of the company’s venture capital model,the company’s venture capital motivation,and the company’s venture capital’s value creation effect,for the follow-up case analysis.Lay the foundation of literature.Secondly,this paper precisely defines the concept of corporate venture capital,distinguishes it from independent venture capital,and deepens the understanding of the concept of corporate venture capital.It also introduces the theory of signaling,market power,and market efficiency as the theory for case studies.in accordance with.Thirdly,this article introduces the relevant information of Tigermed,Mous,and Taiyu Fund,briefly combs the process of Tigermed’s CVC investment in Mouss,and deeply analyzes the motivation of Tigermed’s CVC investment,that is,to exert capital leverage effect.,improve the investment efficiency of enterprises;lock the acquisition targets in advance to reduce the risk of subsequent acquisitions;expand the field of clinical pharmacology and improve the layout of the pharmaceutical industry.Furthermore,this article elaborates the whole process of Tigermed’s venture capital establishment,operation,and harvest,and deeply analyzes the path of the company’s venture capital to Tigermed’s value creation,that is,to determine the investment direction,select the investment targets;lock the acquisition target,implement Cultivation and management;acquisition of start-up companies to exert synergies.Finally,this paper uses the factor analysis method,the economic added value method and the event research method in turn to analyze the effect of the whole process of Tigermed CVC’s investment in Muse Medicine.On the whole,regardless of the long-term value creation effect or the short-term value creation effect,Tigermed established Taiyu Fund and invested in Mousi Medicine through Taiyu Fund.Tigermed purchased the equity of Mousi Medicine held by Taiyu Fund,and Tigermed acquired the equity of Mousi Medicine.Both Mous Pharmaceuticals can gain corporate value appreciation,while Tigermed ’ s subsequent purchase of the original shareholder equity of Mous Pharmaceuticals cannot immediately gain corporate value appreciation.Under the factor analysis method,we can see that the value creation effect of Tigermed’s purchase of the original shareholder’s equity can be fully reflected after the two parties have carried out resource integration and coordination for about a quarter.For listed companies,corporate venture capital can cope with dynamic environment,improve resource efficiency,identify acquisition opportunities,and obtain innovative resources.For start-ups,corporate venture capital can alleviate financing constraints,provide value-added services,and promote the commercialization of R&D results.Based on mutual benefit demands,this paper tiger medicine CVC investment for medicine,for example,a profound interpretation tiger medicine to carry out the specific mode of venture investment company and the corresponding steps,clear company venture investment to the path of value creation and value creation effect of listed companies,the other listed companies in our country the right to carry out venture investment company has significant practical significance,That is,it fits the actual situation of enterprises and makes rational venture investment;Effectively integrate the resources of both sides and fully give the growth cycle.In addition,this article through to the tiger medicine CVC investment for further exploration,medical cases,put forward the corresponding policy recommendations to help improve the regulators to value a venture investment company,to enhance regulatory policy support of venture investment company,namely,to develop venture investment laws and regulations,improve the system of information disclosure of listed companies,It is expected to open up a stable and orderly and rapid development path for the high quality development of Chinese company venture capital industry.