Cristiano Bellavitis's research while affiliated with Syracuse University and other places

Publications (50)

Article
Full-text available
We assess the impact of monetary policy (i.e., central bank interest rates) on the activity of venture capitalists (VC). Using data from 31 countries from 2004 to 2019, we find that VC firms’ fundraising activity increases when interest rates become negative. We explain this finding by referring to the principal-agent relationship between general a...
Article
Blockchain technology and smart contracts are catalysts for decentralization and disintermediation. These new technologies reduce transaction costs, agency costs, and offer a basis for trustless social and economic interactions. They are fueling new business models for decentralized platforms and have revolutionized crowdfunding. A recent trend, De...
Preprint
Full-text available
Blockchain technology and smart contracts are catalysts for decentralization anddisintermediation. These new technologies reduce transaction costs, agency, and offer a basis for trustless social and economic interactions. They are fueling new business models for de-centralized platforms and have revolutionized crowdfunding. A recent trend, Decentra...
Article
Full-text available
Plain English Summary A new study, investigating 130 countries, finds that COVID-19 influenced the global venture capital landscape in surprising ways. We assess the effect of the COVID-19 pandemic on venture capital (VC) investments, documenting a significant decline in investments using a dataset of 39,527 funding rounds occurring before and duri...
Article
Initial coin offerings (ICOs) represent an innovative and new funding mechanism for new technology ventures. In our comprehensive review of the industry’s evolution, we show that despite its short history, there have been dramatic changes and shifts in the number of ICOs, the amount of money raised, the geographic distribution of ICOs, and their re...
Preprint
Full-text available
We assess the impact of negative central bank interest rates on venture capital (VC) markets. Using data from 32 countries from 2004 to 2019, we find that interest rates have a significant effect on the functioning of VC markets. Higher interest rates are associated with higher demand for venture capital by entrepreneurs and higher fundraising acti...
Article
Full-text available
Prior empirical research is inconclusive in determining whether technology complexity influences the financial performance of research commercialization projects and how various types of organizational resources contribute to performance. We analyse research commercialization projects involving the collaboration between public research institutes a...
Article
Full-text available
Initial coin offerings (ICOs) represent an innovative and new funding mechanism for new technology ventures. In our comprehensive review of the industry's evolution, we show that despite its short history, there have been dramatic changes and shifts in the number of ICOs, the amount of money raised, the geographic distribution of ICOs, and their re...
Article
Full-text available
Regulatory spillovers occur when regulation in one country affects either the expected regulatory approach and/or entrepreneurial finance markets in other countries. Drawing on institutional theory, we investigate the global implications of a regulatory spillover on entrepreneurship. We argue that regulatory spillovers have both short- and long-ter...
Article
A venture capitalist (VC) needs to trade off benefits and costs when attempting to mitigate agency problems in their investor-investee relationship. We argue that signals of ventures complement the VC's capacity to screen and conduct a due diligence during the preinvestment phase, but its attractiveness may diminish in institutional settings suppor...
Article
Full-text available
Platform sponsors typically have both incentive and opportunity to manage the overall value of their ecosystems. Through selective promotion, a platform sponsor can reward successful complements, bring attention to underappreciated complements, and influence the consumer’s perception of the ecosystem’s depth and breadth. It can use promotion to ind...
Article
Research Summary This study provides a reconciliation of previous findings regarding the effects of prior co‐investments among venture capitalists (VCs) and the performance of VC syndicates. We propose a relational agency framework outlining cost–benefit trade‐offs associated with prior co‐investments between VCs. A longitudinal study of 4,550 U.S....
Article
Full-text available
This study provides a reconciliation of previous findings regarding the effects of prior co‐investments among venture capitalists (VCs) and the performance of VC syndicates. We propose a relational agency framework outlining cost‐benefit trade‐offs associated with prior co‐investments between VCs. A longitudinal study of 4,550 U.S. ventures receivi...
Article
This case describes the extraordinary growth story of LanzaTech, a New Zealand (NZ)-based company cofounded in 2005 by scientists Sean Simpson and Richard Forster. LanzaTech developed a microbe which fermented the waste gases generated from steel manufacturing to produce ethanol and other chemicals. This case builds on effectuation logic and entrep...
Article
The general management literature has long focused on the agency risks involved in the relationship between general managers and shareholders. Shareholders can deploy contractual and noncontractual mechanisms to reduce these inefficiencies. This study examines—based on a broad international sample of investment contracts—how the use of contractual...
Article
This case describes New Zealand technology company PowerbyProxi, which was established by entrepreneurs Fady Mishriki and Greg Cross in 2007. PowerbyProxi developed a patented wireless slip ring designed for applications within the “wet, dirty and moving” industrial market and also offered breakthrough technology for wireless charging solutions for...
Article
The proliferation of new sources of entrepreneurial finance potentially makes it easier for ventures to raise capital and grow. To date, entrepreneurial finance literature has developed a rich tradition of research on venture capital and angel finance. However, the emergence of “new” sources of finance, such as crowdfunding and the limited attentio...
Article
Venture capital (VC) syndicates involve repeated transactions among partners and therefore possess network-like characteristics. Although networks provide access to important externalities, extant literature has not studied the effects of the focal firm's resource needs on performance benefits arising from different network structures. We investiga...
Article
Full-text available
Platform sponsors typically have both incentive and opportunity to manage the overall value of their ecosystems. Through selective promotion, a platform sponsor can reward successful complements, bring attention to underappreciated complements, and influence the consumer’s perception of the ecosystem’s depth and breadth. It can use promotion to ind...
Article
Full-text available
Venture capital (VC) syndicates involve repeated transactions among partners and therefore possess network-like characteristics. Although networks provide access to important externalities, extant literature has not studied the effects of the focal firm’s resource needs on performance benefits arising from different network structures. We investiga...
Article
This paper examines the prevalence of syndication, incentives and staging and their relation to perceived agency costs and eventual venture survival in contractual relations between VCs and entrepreneurial companies. Our study employs a hand-collected sample of 264 international VC investments in 128 portfolio companies by 90 different lead VCs fro...
Article
Venture capital (VC) syndicates involve repeated transactions among partners and, therefore, they possess network-like characteristics. Although networks provide access to important resources, extant literature did not study the impact of the focal firm’s resource endowment on the performance benefits arising from different network structures. We i...
Article
This study examines the influence of intra-industry and extra-industry networks on firm performance by using data on 1264 UK venture-capital-backed start-up companies. The venture's network was operationalized by connecting together the various portfolio companies sharing the same investor. Regression results show that the venture's network has a s...
Article
The resource-based view argues that competitive advantages are derived from bundling and transforming valuable and idiosyncratic resources in the product market. In this paper we argue that resource value is conferred indirectly through the value of the resource bundle in the marketplace, and directly, if and when the resource is discretely visible...

Citations

... To explain this expected growth, the scientific community has underlined some economic and social reasons. On the one hand, the metaverse will expand access to the marketplace for customers from any part of the world, including emerging and frontier economies, and it could also eliminate vertical agency costs through DAOs (Lee et al., 2021;Bellavitis et al., 2022). Thus, virtual events could have the potential to be more profitable than physical events due to the mass audience's availability and lower costs. ...
... In particular, future research in entrepreneurial finance can assess whether the period of negative interest rates after the global financial crisis is different from the period after the COVID-19 crisis with regard to its impact on the VC market. Initial studies document a pronounced decline in VC investments in response to the spread of COVID-19 (e.g., Bellavitis et al., 2022;Howell et al., 2020) and it will be interesting to see whether negative policy rates prove an effective mechanism to stimulate the industry again. ...
... This section provides a review of growing literature on ICO and IEO with regard to their aspects related to the present paper. For general reviews see, for example, Cumming, Johan and Pant (2019) [37], Myalo (2019) [4], Bellavitis, Fisch and Wiklund (2021) [38], Romero-Castro, Pérez-Pico and Ulrich (2021) [28] and Miglo (2022) [35]. ...
... Given the assetless and intangible nature of cryptos as well as the relative lack of evaluative cues, consumers might evaluate and experience platform brands in different ways (Domingo, Piñeiro-Chousa, and López-Cabarcos 2020;Wichmann, Wiegand, and Reinartz 2022). Also, issuers know very little around how blockchain features influence consumers' behavioral responses to Initial Coin Offerings (ICOs), through which most new tokens are being launched (Bellavitis, Fisch, and Wiklund 2021;Truong et al. 2017). Given the high-failure rates among crypto issuers and the need for building trust in the crypto market, a more thorough understanding is needed around the sources of CBBE for crypto brands. ...
... ▪ corruption; ▪ Capital flight, etc. [14,15,16,17] The liberalization of national financial markets, increased competition for spheres of influence, the development of electronic technologies, means of communication and informatization have led to a more intensive globalization of the financial sphere in comparison with other types of human activity. In particular, standards in the field of financial reporting in different countries are developed on the basis of IFRS. ...
... As such, many entrepreneurial phenomena that have spurred substantial amounts of entrepreneurship research, including approaches such as venture capital and crowdfunding, were created by practitioners at some point in the past to solve specific problems or take advantage of new technologies and, thus, can now be studied by scholars. With the rise of new artifacts such as cryptocurrencies, blockchain technology, and initial coin offerings, new entrepreneurial phenomena have been emerging (e.g., Bellavitis, Cumming, & Vanacker, 2021). Moreover, grand 2 Although we use the phrase "ought to be" as used in the cited texts to refer to a future orientation in contrast to "how things are," we do not mean that there is necessarily one optimal design and solution to a problem from the perspective of all stakeholders. ...
... Also, investors are subject to a greater risk as they are not adequately protected by laws and regulations in case of default (Howell et al., 2020). For instance, ICOs could avoid country-specific regulations on disclosure and prospectus requirements (Bellavitis et al., 2020). ...
... Even if there is a plethora of factors that can be considered in reference to innovation processes in NTBFs (Albors-Garrigos et al., 2010), three of them recur very often in entrepreneurship studies. They are: R&D investments (Heij et al., 2020;Matricano, 2020a), the presence of high-skilled employees (Cheah et al., 2020;Matricano, 2020b) and holding a patent (Ernst et al., 2016;Wang et al., 2020). The impact that these factors can exert on performance of NTBFs needs to be characterized according to each entrepreneurial profile. ...
... Even though it is a novel technology, there is nowadays a branch of cryptocurrency literature that studies Defi. Among the most relevant studies that address this topic in a general way are Kiong (2020), who provides a guide on how to use all the major Defi platforms, and Chen and Bellavitis (2020), who study the benefits of decentralized finance, identifying existing business models and evaluating potential challenges and limits. Gudgeon et al. (2020) explore how design weaknesses and price fluctuations in Defi protocols could lead to a Defi crisis; inspired by stress-testing as performed by central banks, they develop a stress-testing framework for a stylized Defi lending protocol, focusing attention on the impact of a drying-up of liquidity on protocol solvency and conclude that it is at risk of financial meltdown that it is supposed to be preventing. ...
... Understanding how other intermediaries approach this issue therefore might reveal interesting and so far neglected 290 information (Kaplan & Stromberg, 2001). New approaches might also have important implications for traditional players active in early-stage financing (Bellavitis et al., 2019). IP venturing funds as a new phenomenon represent an appropriate context for studying how agency costs can be decreased, as they face particularly high agency costs: First, they are active at a very early stage, 295 even before the venture is incorporated. ...