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 Mele
Primo
;
A. Quas
Secondo
;
S. Romito
Ultimo
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.
Government venture capital; Impact orientation; Entrepreneurial finance; Impact investing
Settore SECS-P/08 - Economia e Gestione delle Imprese
Settore SECS-P/09 - Finanza Aziendale
ott-2024
20-ago-2024
Article (author)
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/1090908
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