In addition to traditional venture capital (VC), governmental VC and social impact VC investors have emerged as alternatives to fund entrepreneurial ventures, especially start-ups that incor- porate social and/or environmental objectives into commercial operations. Using a sample of 15,510 VC-backed start-ups, we show that impact-oriented ventures are more likely to receive funding from alternative VCs. Both social and environmental orientations increase the chances that a start-up secures funding from impact VCs while social orientation drives results for gov- ernment VCs. Importantly, we also show that impact-oriented ventures are more likely to secure investment from traditional VCs when impact and governmental VCs co-invest.
Impact orientation and venture capital financing: The interplay of governmental, social impact and traditional venture capital / V. Lo Mele, A. Quas, P. Reichert, S. Romito. - In: FINANCE RESEARCH LETTERS. - ISSN 1544-6123. - 68:(2024 Oct), pp. 105987.1-105987.11. [Epub ahead of print] [10.1016/j.frl.2024.105987]
Impact orientation and venture capital financing: The interplay of governmental, social impact and traditional venture capital
V. Lo MelePrimo
;A. Quas
Secondo
;S. RomitoUltimo
2024
Abstract
In addition to traditional venture capital (VC), governmental VC and social impact VC investors have emerged as alternatives to fund entrepreneurial ventures, especially start-ups that incor- porate social and/or environmental objectives into commercial operations. Using a sample of 15,510 VC-backed start-ups, we show that impact-oriented ventures are more likely to receive funding from alternative VCs. Both social and environmental orientations increase the chances that a start-up secures funding from impact VCs while social orientation drives results for gov- ernment VCs. Importantly, we also show that impact-oriented ventures are more likely to secure investment from traditional VCs when impact and governmental VCs co-invest.File | Dimensione | Formato | |
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