ABSTRACT
As a result of the neglect of CVC in the research literature, very little is known about either the investment process or the experiences of companies that have made these investments in the UK. These issues are important to this study for three reasons. First, an examination of the internal organisation and investee selection procedure used by investing companies will provide an insight into the corporate decision-making process and enhance our understanding of the dynamics and corporate objectives behind the CVC process. Second, identification of the performance of investments and constraints experienced by investors in the past may provide some further clues as to the underdeveloped nature of CVC in the UK. Third, and of particular significance, a consideration of the characteristics of CVC investments can help to determine which types of firms are most likely to benefit from this finance source. In the light of the second main aim of this book, namely to examine the role of CVC as a source of external equity finance for small firms and venture capitalists, the main focus of this chapter is on the role of CVC in the bridging of the equity gap.
