Factors Influencing the Growth of Venture Capital Introduction Many people dream of starting their businesses. There are several reasons why entrepreneurs would be willing to start their businesses. However, many of them get stuck because of a lack of capital since many financial institutions don't lend in the absence of collateral security. Some get lucky enough to get financial support from their savings or families and friends. But for others, there is only one alternative to obtain funds and start their businesses, and that is through venture capital. This is a part of private equity capital that is normally given for new start-ups that promise potential growth in the aim of getting a return on investment. In other words, venture capital investment is generally refers to cash in exchange for a share in the invested business. Structure of Venture Capital Venture capitalists (VC) refer to an investment firm or a person making venture investments. Apart from the issuance of capital, venture capitalists (VCs) also play a role in managing the business at an early stage, thus adding expertise skills. Kwak (2019) tells us that because there is a high risk of losing all investment in a given start-up company, most venture capital investments are done a pool format, where investors combine their portfolios into one large fund that invests in different start-ups. By doing this, they spread out risks hence improve their return on investments According to Wallmeroth, Wirtz & Groh (2018), venture capital is generally used as a tool for economic development in underdeveloped countries. For the past few decades, venture capital has attained substantial growth especially in the developing economies where a considerable increase in economic activities has been observed of late. The main reason for this could be the search for different profitable markets that have gone through economic maturity, given that the developed markets have shown a slight decrease in profitability levels due to trade wars currently at play. Despite venture capital being widely disseminated worldwide, but the activity is mostly concentrated in America. In this paper, I will aim to understand the factors that drive the growth of venture capital. Motives that drive Venture Capital The venture capital market contains three elements namely management organization, capitalists, and invested corporations. In simplifying the dynamic market, capitalists invest their investments which are controlled by management organizations, which in turn, buy a stake in investment firms for a specified period (Maula, Autio & Murray, 2010). · Organization Innovativeness To clearly illustrate motives for venture capital, it’s essential to analyze the level of growth and development as a result of the effectiveness of measures at the organizational level. Generally, the organizations’ interest in creating venture funds has been largely influenced by the venture capital climate. Most companies gene.

1. Factors Influencing the Growth of Venture Capital
Introduction
Many people dream of starting their businesses. There are
several reasons why entrepreneurs would be willing to start
their businesses. However, many of them get stuck because of a
lack of capital since many financial institutions don't lend in the
absence of collateral security. Some get lucky enough to get
financial support from their savings or families and friends. But
for others, there is only one alternative to obtain funds and start
their businesses, and that is through venture capital. This is a
part of private equity capital that is normally given for new
start-ups that promise potential growth in the aim of getting a
return on investment. In other words, venture capital investment
is generally refers to cash in exchange for a share in the
invested business.
Structure of Venture Capital
Venture capitalists (VC) refer to an investment firm or a person
making venture investments. Apart from the issuance of capital,
venture capitalists (VCs) also play a role in managing the
business at an early stage, thus adding expertise skills. Kwak
(2019) tells us that because there is a high risk of losing all
investment in a given start-up company, most venture capital
investments are done a pool format, where investors combine
their portfolios into one large fund that invests in different
start-ups. By doing this, they spread out risks hence improve
their return on investments
According to Wallmeroth, Wirtz & Groh (2018), venture capital
is generally used as a tool for economic development in
underdeveloped countries. For the past few decades, venture
capital has attained substantial growth especially in the
developing economies where a considerable increase in

2. economic activities has been observed of late. The main reason
for this could be the search for different profitable markets that
have gone through economic maturity, given that the developed
markets have shown a slight decrease in profitability levels due
to trade wars currently at play. Despite venture capital being
widely disseminated worldwide, but the activity is mostly
concentrated in America. In this paper, I will aim to understand
the factors that drive the growth of venture capital.
Motives that drive Venture Capital
The venture capital market contains three elements namely
management organization, capitalists, and invested
corporations. In simplifying the dynamic market, capitalists
invest their investments which are controlled by management
organizations, which in turn, buy a stake in investment firms for
a specified period (Maula, Autio & Murray, 2010).
· Organization Innovativeness
To clearly illustrate motives for venture capital, it’s
essential to analyze the level of growth and development as a
result of the effectiveness of measures at the organizational
level. Generally, the organizations’ interest in creating venture
funds has been largely influenced by the venture capital
climate. Most companies generally use the internal R&D
system as the primary source of innovativeness. In spite of these
systems having a high prevalence use in many organizations,
venture capitalists are cautioned against limiting organizations
to sourcing its innovativeness from internal R&D. Research has
it that most monopolies lack efficiency, and so, the costs related
to inefficiency are automatically borne by the end consumer.
Napp & Minshall (2011) tells us that heightened R&D expense
at the firm’s level is an indication of internal inefficiencies as
well as increase in costs rather than successful innovative
strategies.
This said it is therefore a necessity for organization
structure to eradicate the dominance enjoyed by the R&D units.
To accomplish this, it is material for entities to structure
technological measures through effective approaches such as

3. corporate venture capital. The option for multiple technological
initiatives founded on corporate venture capital is common
among the world's leading corporations. The introduction of this
technique at the organizational level has been found to
eliminate inefficiencies and a tool used for cost reduction.
· Agency Problem
Agency theory focuses on inefficiencies that hinder
contract association between firms. In this matter, both
participants in a contract are opportunistic and risk-averse.
Consequently, the opportunistic behavior of both parties may
not align with the best interest of the organization. Moreover,
any form of disagreement between both parties implies an
enduring loss for the business. A typical example where an
agency problem exists is the case of the relationship between
the organization's R&D unit and the top management involved
in technological advancement. So, if the R&D department starts
a project beyond its limits and takes actions that cannot be
accounted for or verified, it may create conflicts. Also, hold up
challenges may emerge causing funded internal investments to
halt in spite of significant corporate expenditure. Therefore,
creating a corporate venture capital initiative is the ideal
solution to some of the challenges related to agency problems.
In regards to this, the corporate venture capital will give the
internal R&D unit with a healthy challenge over their
dominance on innovativeness. Gaba & Bhattacharya (2012) tell
us that challenging the dominance by internal R&D unit on
innovation productions has aided several businesses to
successfully achieve their objectives.
· Detachment
Research has also established that venture capital offers an
inside perspective of new technology areas that can be exploited
as well as an approach that allows businesses to respond swiftly
to market changes. According to a study done by Maula, Autio
& Murray (2010) about venturing initiatives, the findings
showed that organizations which were able to make successful
technological investment experienced better success levels.

4. Another positive aspect of venturing is that it provides the firm
with the ability to speed up its response to threats. In particular,
it offers a quicker approach for the organizational management
to detach from portfolios that appear doomed to fail. Since the
relationship between the organization and the venture funds is
normally at arm's length, this is a significant advantage to
market players. Because, as much as organizations may seem
reluctant to abandon an unpromising project, the presence of
other venture capitalists provides a platform for forcing a
decision.
· Business Response
Capital venturing also provides an organization with
various sources of leveraging. This can be seen in the iFund
case whereby decisions made by investors to promote the
development of technologies relying on the venture firm
business platforms to increase product demand. The venture
fund was invested in several hardware and software makers
whose products capitalized the power presented by the new intel
chip. The success of these investments resulted in increased
adoption of the chip within a short period. All these successes
are attributed to applying corporate venturing to create a
network of wireless players.
· Threat Management
Another motive that drives venture capital is threat
management. The venture fund can be used by a firm as an
approach to gathering intelligence, which in turn assists the
organization to protect itself from emerging threats in the
competitive market. Gaba & Bhattacharya (2012) mentions that
during the 1980s, a silicon-chip expert formulated a venture
program that focused on investing in a variety of technologies.
This program aimed to gather strategic information at a much
lower cost. The process program findings discovered that it was
hard and expensive making chips using non-silicon products.
This resulted in high valuation thus making the company
capitalize on its competitive advantage. From this case, we
realize that the decision to engage in capital venturing offered

5. the firm a source of insurance. Also, the alternatives that the
organization explored were viable as they were protected from
the risk of being faced out of the market by its competitors.
Conclusion
In conclusion, the analysis of the various factors that influence
venture capital and its importance in their business world is
depicted from the resultant growth, development, as well as
competitiveness in the market. From the paper, we realize that
the factors that drive venture capital demonstrate
entrepreneurial aspects that correlate with the positive effects
on business corporations. Based on the deeper analysis of the
strategic entrepreneurial aspects of venture capital investments,
this article has clearly illustrated and affirmed that the
technology plays a significant role in the competitiveness and
sustainability of organizations and hence an attractive platform
to venture in.
References
Gaba, V., & Bhattacharya, S. (2012). “Aspirations, innovation,
and corporate venture capital; A behavioral perspective.”
Strategic Entrepreneurship Journal.
Kwak, G. (2019). What drives venture capital fund
performance?. Applied Economics Letters, 1-6.
Maula, M. V., Autio, E., & Murray, G. C. (2010). “Corporate
venture capital and the balance of risks and rewards for
portfolio companies.” Journal of Business Venturing, 24(3), pp.
274-286
Napp, J. J., & Minshall, T. (2011). “Corporate venture capital
investment for enhancing innovation: Challenges and
solutions.” Research-Technology Management, 54(2), 27-36.
Wallmeroth, J., Wirtz, P., & Groh, A. P. (2018). Venture
capital, angel financing, and crowdfunding of entrepreneurial
ventures: A literature review. Foundations and Trends® in

6. Entrepreneurship, 14(1), 1-129.
CSE170 Term Paper B
Instructions for Term Paper B, and for completing the required
coursework (due on canvas, on
Thursday, 03/12/20).
Course website: https://canvas.ucsc.edu/courses/30042
A. General feedback for the class based on reading Term Paper
A
• The quality of work on Term paper A ranged, for the most
part, from good (A-) to excellent (A+).
• If I made suggestions for improvement, then you can use these
suggestions to revise and re-submit your
paper. Keep these comments and suggestions firmly in mind as
you work on Term Paper B (the new
topic).
• On composition: Make the paragraph the unit of your
composition, which means the following. Start
each paragraph with a sentence expressing a single idea or
theme. Then use the paragraph to develop this
single idea (only). Do not jump to other ideas in the same
paragraph, unless the purpose of the paragraph
is to compare or contrast two or more ideas. Use real examples
from the speaker’s presentation to
illustrate your ideas. End the paragraph with a
conclusion/bridge to the next paragraph. Finally, make sure
that your paragraphs tell a continuous story.
B. Instructions for Term Paper B (Topic 2) and for the final
submission of the work

7. required for this course (due in-canvas, on Thursday, 03/12/20):
1. Term Paper A. First complete Term Paper A: This may
require you to refine and expand your Term
Paper A based on my feedback and suggestions.
2. Choose a Topic for Term Paper B. For Term Paper B, choose,
as the topic, one of the eight
speakers (including today’s speaker) presentations . The speaker
presentation that for you choose for
Part B must be different from the one you selected for Term
Paper A.
3. Term Paper B. Write Term Paper B using the guidelines that
were given for writing Term Paper A.
First create a structured outline for Term Paper B. (Please
remember to submit your outline within
the same document.) Then expand this outline into a short 1500-
2000 word paper (approximately
6-8 double-spaced pages) term paper clearly structured into
sections (and subsections if appropriate)
with appropriate headings for each section.
4. Integration. After completing Term Paper B, add a short
creative 300-word section showing
possible links (connections) between Term Paper A and Term
Paper B, within the context of the
development, management, and commercialization of
technology. Call this section “Integration.”
5. Attach all outlines at the end. It is also recommended that
you have a table of contents.
Submit the final version of your completed work (Term Paper
A, Term Paper B; Integration; Outline of
Term Paper A, Outline of Term Paper B in 1 single document)
on Canvas on Thursday, 12 March, 2020.

8. (No extensions).
https://canvas.ucsc.edu/courses/30042
CSE170
Winter 2020
02/06/2020
CSE 170 Term Paper A: Instructions for creating “Term Paper,
Part A”
(due in canvas on 02/13/2020)
First, select one topic from the first four (including today’s)
presentations in Winter
2020:
1. Water Resource Management and Information Technology
Professor Brent Haddad, 01/16/20.
2. What Drives Venture Capital
Paul Vroomen, VC Partner & UCSC PhD
Alumnus, 01/23/20
3. A Customer-Centric approach to Product Development
Tanguy Leborgne, Vice-President, Plantronics
01/30/20
4. Technology Management: A CIO Perspective
Tom Gill, former CIO, Plantronics
02/06/20
For the term-paper topic you have selected write a 1200-1500
word draft (5-7 double-spaced
pages) using the process and structure described below:

9. Outline: Before writing the paper create an outline for the paper
based on the structure for the
term-paper described in the next four bullets. You must attach
your outline at the end of your
paper. Carefully read the next four bullets before creating your
outline.
Divide your paper into sections and subsections, each with an
appropriate heading. Each
paragraph should only contain one idea, which is clearly stated
at the beginning of the paragraph,
and then developed in the paragraph. The next three bullets
describe how the sections are
organized.
Set-up of a theme for your paper (1-2 paragraphs): Develop a
creative, thought- provoking
theme or hypothesis for your paper. This theme should be
within the context of the (clearly
stated) key product/technology, and/or business/management,
and/or commercialization issues
addressed in the speaker’s presentation.
Develop the theme (8-10 paragraphs). Develop your theme or
hypothesis with suitable
arguments, supported by evidence and examples. Be sure that
the technology issues (e.g., a
company’s technology and product line) and business issues
(e.g., marketing and sales strategy)
that you discuss are clearly related to the specific context of the
speaker’s presentation (e.g., how
distribution channels are used to market products, etc.). Provide
several concrete examples (e.g.,

10. examples of successful research projects at Microsoft, Seagate’s
markets and products, etc.).
End the theme (1-2 paragraphs): Re-examine your theme or
hypothesis. Does it still stand; does
it need to be refined, or changed? What conclusions can you
draw from this seminar presentation
relative to the development, management, and
commercialization of technologies and products?
What are the technology, business, and management challenges
and opportunities going forward?
Use the following sources of information in writing your term
paper: your own class notes the
speaker presentations on the CSE170 class website:
https://canvas.ucsc.edu/courses/30042
internet and library research on relevant companies and topics.
Hand in the completed term-paper,
Part A, in canvas on Thursday, 02/13/20.
https://canvas.ucsc.edu/courses/30042
ARTIFICIAL INTELLIGENCE
2019
Ira Pohl
TIM Feb 21, 2019
TalkWhat is AI?A brief historyUse in IndustryIs AI an

11. existential ThreatFutureUCSC work
What is AI?AI – a science/engineering of intelligenceIn analogy
to aeronautical engineering/flyingAI – model of
“human/cognitive” systemIs done as a theory of human
intelligence
Acting humanly: Turing TestTuring (1950) "Computing
machinery and intelligence":Predicted that by 2000, a machine
might have a 30% chance of fooling a lay person for 5
minutesAnticipated most major arguments against AI Loebner
Prize
SIRI(Apple) Cortana(Microsoft) OK
GOOGL(Alphabet)Alexa(Amazon)
Thinking humanly: cognitive modeling1960s "cognitive
revolution": information-processing psychology Newell and
Simon GPS
Requires scientific theories of internal activities of the brain
-- How to validate? Requires
1) Predicting and testing behavior of human subjects (top-
down)
or 2) Direct identification from neurological data (bottom-up)
Thinking rationally: "laws of thought"Several Greek schools
developed various forms of logic: notation and rules of
derivation for thoughts; Direct line through mathematics and

12. philosophy to modern AI
-Leibnitz,BooleKleene, Church, Turing – McCarthy, Robinson
AI prehistoryPhilosophy Logic, methods of reasoning,
mind as physical
system foundations of learning, language,
rationalityMathematics Formal
representation and proof algorithms,
computation, (un)decidability, (in)tractability,
probability,bayesEconomics/OR utility,
decision theory Neuroscience physical substrate for mental
activityPsychology phenomena of perception and motor
control,
experimental techniquesComputer Science
building fast computers, algorithmsLinguistics
knowledge representation, grammarStatistics bayes,
big data
Abridged history of AI1943 McCulloch & Pitts: Boolean
circuit model of brain1950 Turing's "Computing Machinery
and Intelligence"1950s Early AI programs, including
Samuel's checkers
program, Newell & Simon's Logic Theorist, 1956
Dartmouth meeting: "Artificial Intelligence" adopted1980
AI industry –Symbolics & Knowledge Based
Systems1983 Learning theory - resurgence (after

13. Minsky-Papert Perceptron)1995 The emergence of
intelligent agents 1997 Kasparov loses to Deep Blue2003
iRobot – Roomba, Pacbot5102011 Google Car
–self driving 300,000 miles2011 MOOCs – autograded
classes, edX software2014 Hawking “spell the end of
the Human race” –BBC2015 Google AlphaGo beats
European champion-using learning2016 IBM Watson does
oncology (having won Jeopardy)2017 Okay
GOOGLE, Nest, Alexa – AI runs the home2018
ALPHA-GO learns chess in two hours and beats
STOCKFISH2018 Protein Folding-Deepmind alpha-fold
Dec 2018
Riba DescriptionRIBA — short for “Robot for Interactive Body
Assistance” — was developed by researchers at Japan’s Institute
of Physical and Chemical Research (RIKEN) and Tokai Rubber
Industries, Ltd. (TRI). Designed primarily to assist nurses by
lifting patients in and out of their beds and wheelchairs (as well
as on and off the toilet), the 180-kilogram (400-lb) robot can
safely pick up and carry people weighing as much as 61
kilograms (135 lbs).
RIBA -2008 Nurse Robot
Skilled Work without the Worker
NYT_ Aug 18, 2012 by John MarkoffTake the cavernous solar-
panel factory run by Flextronics in Milpitas, south of San
Francisco. A large banner proudly proclaims “Bringing Jobs &
Manufacturing Back to California!” Yet in the state-of-the-art

14. plant, where the assembly line runs 24 hours a day, seven days a
week, there are robots everywhere and few human workers. All
of the heavy lifting and almost all of the precise work is done
by robots that string together solar cells and seal them under
glass. The human workers do things like trimming excess
material, threading wires and screwing a handful of fasteners
into a simple frame for each panel.
GO- Learning/MCGo Program is now (Google Go program
European Champ) about to surpass human abilityHow:
learning, big data, MC computation;Distinctly not “human”
cognitionImplication: Machine Intelligence is surpassing human
ability in ways that humans cannot “understand”
State of the artDeep Blue defeated the reigning world chess
champion Garry Kasparov in 1997 -current best 3100+ vs 2800
for humansProved a mathematical conjecture (Robbins
conjecture) unsolved for decades 1996 by EQPNo hands across
America (driving autonomously 98% of the time from
Pittsburgh to San Diego) in 1995 -2005 132mile unknown
terrain-completely autonomousDuring the 1991 Gulf War, US
forces deployed an AI logistics planning and scheduling
program that involved up to 50,000 vehicles, cargo, and people
Roomba 2002 > Now pet hair version, mopping, eaves,
windowsRIBA 2007IBM WATSON- 2011 – wins Jeopardy
against all time champsGoogle robot Car 2012 300,000 miles
Now >> 1,000,000
AchievementsLISP, Time SharingGames – early space war
gamesIntellectual Games – mastery in Chess, checkers, Hex,

15. othello, backgammon, scrabble- and now GO and
PokerMACSYMA –Mathematica,
MATLABDENDRAL(chemistry, medicine …
experts)WATSON-IBM RoboticsSpeech and Handwriting
recognition (SIRI)
Large trendsBig data and learning- google can translate
effectively between natural languages;Big Computation- monte
carlo simulations with simple metrics can outperform humans
with deep knowledge
Yet to comeWill humans need to work?GO store in Seattle –
Amazon no cashiersTESLA –autopilot for Semis3.5 million
cashier jobs, 5million driving jobsWill their be a “singularity”Is
there an existential threat?
If work and intelligence do not define us; what does?
Baxter - $3.00 per hourRodney Brooks : general purpose
trainable indutrial robot: cost $22,000.
AI reads minds??‘MIND-READING’ ALGORITHM DECODES
THE PICTURES IN YOUR HEADResearchers from ATR
Computational Neuroscience Laboratories and Kyoto University
in Japan developed a deep learning-based algorithm that can
generate images from brain activity.

16. CYBORGSAI HELPS AMPUTEE PLAY PIANO FOR FIRST
TIME SINCE 2012Georgia Institute of Technology researchers
developed an ultrasonic sensor that allows amputees to control
individual fingers on a prosthetic hand.
UCSC AI-and relatedPohl- Heuristic Search, Should Robots
have Nuclear ARMsGetoor- Big Data InferenceMateas-Games
Intelligent dialog for characters,Façade Interactive
dramaHelmbold, Warmuth, Haussler- effective learning
algorithmsElkaim- Autonomous Sailboat > now a degree
programLots of new people since I retired – check web pages